Do solar panels increase the value of your home?

Costs
Last updated on 11 December 20248 min read

Learn about how solar panels affect property prices around the UK, and why they're so popular with homebuyers.

Josh Jackman
Written byJosh Jackman
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A row of terraced houses with a huge black solar panel above them, a yellow '£' sign, a white arrow pointing upwards, and a turquoise background

Solar panels & home value: at a glance

🏠 69% of people in the UK are 'likely' to buy a home with solar panels on

The demand for solar homes is increasing – and it’s already high.

69% of people are either ‘likely’ or ‘very likely’ to buy or rent a property with solar panels, according to a 2023 Eco Experts survey of more than 2,000 UK homeowners.

Just 8% of people said they’d be ‘unlikely’ or ‘very unlikely’ to do so.

⬆️ You’ll almost always raise your EPC grade by getting solar panels

Solar panels increase a home’s EPC rating by around 18 points on average, according to our calculations, which are based on the government’s Standard Assessment Procedure (SAP) guidance.

The exact uplift your home’s EPC score will enjoy depends on the size of your solar panel system.

☀️ Solar panels could add 3% to your home’s value, on average

Your EPC rating has a direct impact on your home’s value, according to a 2023 study of 300,000 properties by Rightmove.

Raising your home’s EPC rating from D to C could increase your property's value by 3%, or £11,157.

And in the vast majority of cases, solar panels will help you achieve this kind of jump up the EPC rankings.

📈 Other UK studies range between 0.9% and 14%

Solar panels could boost your property’s price by between 0.9% and 2% on average, according to a 2021 report from Solar Energy UK, which analysed five million home sales.

Meanwhile, based on a study from sustainable energy company Effective Home, getting solar panels installed on your roof could raise your property’s price by 14%.

⚡ A solar & battery system will reduce a household’s electricity bills by 103%, on average

This might sound too good to be true, but it’s all because of the high performance of modern solar panels and storage batteries, as well as export income.

The panels will dramatically reduce the amount of electricity you buy from the grid, and you’ll also earn money by selling your unused electricity to the grid.

This 103% figure is based on a household experiencing average UK irradiance with a 4.4 kilowatt-peak (kWp) solar panel system and a 5.2 kilowatt-hour (kWh) battery, using 3,500kWh of electricity each year and signed up to the Intelligent Octopus Flux export tariff.

Solar panels can cut your electricity bills, your carbon footprint, and your reliance on the grid – but before you commit, you’ll want to know you’re making the best choice for your home.

This naturally includes checking whether solar panels have a positive impact on your property’s price.

In this article, we’ll run through the latest in-depth research on the subject, and explain how much you can therefore expect solar panels to add to your home’s value.

If you’re wondering how much a solar & battery system could save you, answer a few quick questions, and we’ll provide you with an estimate.

The impact of solar panels on UK property value

Solar panels typically boost a UK home’s value by around 3%, according to multiple studies from the housing industry.

This is down to the impact they have on your Energy Performance Certificate (EPC) rating, which is a ranking system that indicates how energy-efficient a home is on an A-G scale.

Going solar will usually raise your EPC ranking by a grade, though a larger system may allow you to jump up two grades – which will result in your property’s value increasing even further.

Landlords are clearly aware of this pattern, seeing as their top reason for making green home improvements is to increase their property’s value, according to Coventry Building Society’s 2023 study.

And homeowners have spotted the trend too, with 67% believing that making their property more energy-efficient would increase its value.

We’ll go into much more detail about the effect of solar panels on your home’s value throughout the article.

Do solar panels increase your property’s EPC rating?

Solar panels typically increase a property’s EPC rating.

An EPC report is necessary if you’re selling, building, or renting out a property – and it’s a great way for owners to find out how to cut their energy bills.

Here’s the scoring system:

Energy rating
A
B
C
D
E
F
G
Score
92+
81-91
69-80
55-68
39-54
21-38
1-20

Every EPC report estimates how much energy you need per year, based on your property’s size and efficiency, plus the energy used to produce this fuel and supply it to you.

Solar panels allow you to generate a significant proportion of this energy yourself, massively cutting the amount you need to import from the grid – which uses fossil fuels to produce around 40% of its electricity.

This will increase your home’s EPC rating, as you’ll be replacing carbon-emitting grid electricity with green solar energy.

Your EPC report will also explain how much money you could save by making some eco-friendly home improvements.

Homes with a D grade or below typically spend hundreds of pounds more per year on energy than they would with a more energy-efficient home – which includes 64% of UK homes with an EPC rating, according to our analysis of the latest government data.

Solar panels increase a home’s EPC rating by around 18 points on average, according to our calculations, which are based on the government’s Standard Assessment Procedure (SAP) guidance.

EPC reports will usually tell you that a 2.5kWp solar panel system could increase your score by around 10 points, but the average domestic solar installation is now above 4.6kWp (MCS, October 2024) – hence the extra uplift.

As you can see below, solar can help the average property with an area of 100 square metres to raise its EPC rating from D to C – or even to B, with a few more panels.

No. of solar panels
Initial EPC score
EPC score with solar
Initial EPC rating
EPC rating with solar
6
60
73
D
C
8
60
77
D
C
10
60
82
D
B

To work out these figures, we’ve also used data from Nationwide and Rightmove.

As you can see, it’s nearly always better to get a larger solar panel system, since it’ll increase your home’s EPC rating and value, as well as boosting your export profits and protecting you against energy price rises.

bird's-eye view of black solar panels on a brown roof of a terracotta brick house

🤔 Thinking of going solar? Here's why a larger system makes sense ⬇️

When you’re switching to solar, it's worth getting as large a solar & battery system as you can.

A few extra solar panels won't add much to the overall cost, but in most cases they'll have a big impact on your energy bill savings.

And for the majority of homes, a larger battery will significantly increase the value you get from your solar panels.

To understand all the key reasons in detail, check out the articles below.

Does EPC rating affect property value?

Your EPC rating does affect your property’s value, according to multiple studies that we’ll explain in more detail below.

These studies all find that increasing your home’s value by raising its EPC rating is a good idea – and proven to work – though they disagree about how much you can gain.

This is understandable, since the sheer number of variables – including the property’s location, size, and condition, as well as the state of the housing market – make it near-impossible to get the same result each time.

The best studies will give you a good idea of what to expect though – so let’s run through them.

The Sustainable Homes & Buildings Coalition

Change in EPC rating
Average increase (£)
Average increase (%)
G to F
£9,954
3.8%
F to E
£7,584
2.9%
E to D
£6,162
2.4%
D to C
£5,214
2%
C to B
£5,214
2%
B to A
£4,740
1.8%

Solar panels can increase the value of your home by as much as £10,000 just by moving it up one EPC grade, according to a 2021 study by The Sustainable Homes & Buildings Coalition, which is comprised of Natwest Group, Worcester Bosch, British Gas and Shelter.

And if a solar installation helps your property’s EPC go up by two grades, it could add up to £17,500 to your home’s value. 

75% of properties in England and Wales have either a C or D rating. If your home is among them, a solar panel system could raise its value by 2% on average, adding more than £5,000 to its price tag.

And if your property has an EPC rating of G, going solar could typically raise its value by 3.8%, which is just shy of £10,000.

Rightmove

Change in EPC rating
Average increase (£)
Average increase (%)
F to C
£55,786
15%
E to C
£26,033
7%
D to C
£11,157
3%

Your EPC rating has a direct impact on your home’s value, according to Rightmove’s 2023 study of 300,000 properties.

The survey shows that the price difference between homes with an F grade and a C grade is 15%, or more than £55,000 at current prices.

Your gains are smaller as you go up the EPC grade ladder, but a 3% increase for raising your home’s EPC rating from D to C is still worth more than £11,000.

And fortunately, solar panels can usually help you achieve this kind of jump.

A 4 kilowatt-peak (kWp) solar panel system – that is, an installation which produces 4,000 kilowatt-hours (kWh) per year under standard test conditions – will typically raise your EPC score by around 18 points, which is almost always enough to push you up a grade.

When coupled with the amount you’ll save on your electricity bills every year, this makes going solar a fantastic prospect.

And if you're not sure about the high upfront cost of solar panels, you can always consider Sunsave Plus (the UK's first solar subscription).

To sign up for Sunsave Plus, answer a few quick questions below and we’ll get in touch.

Is there more demand for solar homes?

The demand for solar homes is increasing – and it’s already high.

This means that however much of an EPC rating boost you get from your new solar panels, they’ll make your property more appealing to homebuyers, allowing you to sell it for a higher price.

69% of people are either ‘likely’ or ‘very likely’ to buy or rent a property with solar panels, according to a 2023 Eco Experts survey of more than 2,000 UK homeowners.

Just 8% of people said they’d be ‘unlikely’ or ‘very unlikely’ to do so.

And 66% of people in the UK said they’d feel proud to have an environmentally friendly property, according to a 2021 survey by Halifax of more than 4,300 adults.

Electricity prices are set to keep rising in the coming years, with demand for electricity increasing as heat pumps and electric vehicles become increasingly mainstream.

It’s therefore extremely likely that the popularity of solar panels – which can generate free electricity for their owners – will continue to grow.

Why is demand increasing?

Solar homes are becoming increasingly popular for multiple reasons. They can cut your electricity bills, reduce your reliance on the grid, and shrink your carbon footprint.

Due to their ability to save you money – not least by selling excess electricity to the grid through a solar export tariff – and reduce emissions, solar installations are growing at record rates, and will soon be the norm across the UK.

This means homebuyers may soon be put off by a property that doesn’t come with solar panels – as they often are now when a home doesn’t have double glazing.

  • Solar cuts your electricity bills. A solar & battery system will reduce a household’s electricity bills by 103%, on average*
  • You’ll be less dependent on the grid. What’s more, certain storage batteries can keep your electricity running in the event of a power cut
  • Solar panels protect you against energy crises. The price of energy can spike because of unforeseen geopolitical events – but with your own supply of solar electricity, sudden price hikes will have a limited effect on you
  • They future-proof your property. Homebuyers may soon expect solar panels, meaning your home could be less attractive without them
  • Buyers want a green home. With solar panels, you can cut your carbon footprint by 1.1 tonnes of CO2 per year on average – or 31%. This is based on a database of 32 different solar & battery systems designed by Sunsave, located across England and Wales. Each system uses 430W solar panels and a 5.8kWh battery.

*This might sound too good to be true, but it’s all because of the high performance of modern solar panels and storage batteries, as well as export income.

The panels will dramatically reduce the amount of electricity you buy from the grid, and you’ll also earn money by selling your unused electricity to the grid.

This 103% figure is based on a household experiencing average UK irradiance with a 4.4 kilowatt-peak (kWp) solar panel system and a 5.2 kilowatt-hour (kWh) battery, using 3,500kWh of electricity each year and signed up to the Intelligent Octopus Flux export tariff.

Bar chart showing vast reduction in energy bill savings after someone switches to solar (£783 falling to -£29)

What do other studies say?

Additional studies also show that solar panels have a direct positive impact on your property price.

This means solar installations don’t just raise your home’s value by adding points to its EPC score, but also because of the savings they can earn you on your energy bills.

Solar Energy UK

This broad study, produced by the biggest solar trade association and Cambridge University, shows that even without considering your EPC, solar panels could increase your home’s value.

Your property’s price could go up by between 0.9% and 2% on average, according to this 2021 report, which analysed five million home sales.

With the average house price standing at £281,913 as of January 2024, that means the typical homeowner could increase their home’s value by anywhere from £2,540 to £5,640.

It also means if, for instance, you own a £500,000 property, solar panels could increase its value by between £4,500 and £10,000.

Effective Home

Getting solar panels installed on your roof could raise your property’s price by 14%, according to sustainable energy company Effective Home.

A typical homeowner would therefore see their house’s value soar by £40,300.

This research from 2020 reportedly used government data – which is usually a reliable source – but still produced overly optimistic results compared to most reliable studies.

US studies

Academics and companies in the US have also put together research on whether solar panels increase the value of your home, though since the US has a different cultural and financial approach to solar panels, their studies should be taken with a large pinch of salt. 

Zillow found there was an average 4.1% boost in the sale value of homes with solar panels, with owners in New York receiving the highest increase in the country, at 5.4%.

The 2019 study saw the real estate company look at the sales of homes with and without solar installations across the US, making sure they were comparing properties with a similar age, location, square footage, and number of bedrooms and bathrooms.

A Californian academic study published in 2012 showed solar panels increase the price of a home by 3.5%, on average – with an even bigger boost observed in liberal communities.

And a 2015 investigation led by a US Department of Energy researcher across six states concluded that solar panels significantly raise the price of a property, though it stated the specific amount depended in each case on the nature of the installation and market.

Next steps

The research is clear: solar panels increase the value of your home, typically by 3%.

That’s a large amount to add to your property’s price tag in one go, especially when a solar installation will also start making you money on day one, by cutting your electricity bills.

Going solar is also the best way to protect your household against future energy crises and a national grid that’s struggling to meet the country’s rising needs.

If you’re interested in how much you could save with a solar & battery system, enter a few quick details below and we’ll generate a quick estimate.

Solar panels and property value: FAQs

Do solar panels increase house prices?

Solar panels do typically increase house prices.

A 300,000-property study by Rightmove in 2023 showed that raising your Energy Performance Certificate (EPC) rating by one grade increases your home’s value by 3%.

A 4 kilowatt-peak (kWp) solar panel installation usually adds around 18 points to your EPC score, which in the great majority of cases is enough to raise your property’s grade.

What is the return on investment of solar panels?

A solar & battery system will reduce your electricity bills by 103%, on average, which means you across a year you actually earn more than you spend.

This might sound too good to be true, but it’s all because of the high performance of modern solar panels and storage batteries, as well as export income. The panels will dramatically reduce the amount of electricity you buy from the grid, and you’ll also earn money by selling your unused electricity to the grid.

This 103% figure is based on a household experiencing average UK irradiance with a 4.4 kilowatt-peak (kWp) solar panel system and a 5.2 kilowatt-hour (kWh) battery, using 3,500kWh of electricity each year and signed up to the Intelligent Octopus Flux export tariff.

What is the average cost of installing solar panels in the UK?

The average cost of installing solar panels in the UK is around £9,000 for a typical three-bedroom household.

This will usually get you seven 430-watt solar panels, which can save you hundreds of pounds per year – and potentially even more if you add a solar battery to the system.

Installing a battery usually adds another £2,000 to the cost, but it allows you to use more of the solar electricity you generate, and take advantage of the best export tariffs around.

Will solar panels affect my mortgage?

There’s no reason why solar panels should affect your mortgage – unless you acquire them through a roof lease.

Solar roof leases involve homeowners giving up control of their roof to a company, which can make it more difficult to sell your home.

Some mortgage lenders aren’t keen on homes with roof leases, and buyers will often skip them, as a roof lease makes it harder to make changes to a property. 

Fortunately, Sunsave Plus is not a roof lease, which means you’ll own your roof and all the savings you make from having solar panels.

How many solar panels do I need for a four-bedroom house?

The average four-bedroom house will require a 5.2kWp (kilowatt-peak) system.

This equates to 13 solar panels, each with a peak power rating of 400 watts, and should cost around £10,500.

If you want to add a solar battery to save even more money, this will likely add about £2,000 to the price, for a total of £12,500.

However, it’s usually the case that the more solar panels you can fit on your roof, the higher your profits will be.

Do I need to tell my electricity supplier I have solar panels?

If you get solar panels, you need to tell your Distribution Network Operator (DNO) – that is, the company that runs the hardware which supplies electricity to your region of the UK.

Fortunately, a good solar installer will usually take care of this obligation.

If your solar inverter has a maximum capacity under 3.68kW, your installer will send a G98 form to your DNO after the system is in place.

And if the inverter can reach beyond 3.68kW, they’ll submit a G99 application.

DNOs usually take four to eight weeks to approve these applications.

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Josh Jackman

Written byJosh Jackman

Josh has written about the rapid rise of home solar for the past five years. His data-driven work has been featured in United Nations and World Health Organisation documents, as well as publications including The Eco Experts, Financial Times, The Independent, The Telegraph, The Times, and The Sun. Josh has also been interviewed as a renewables expert on BBC One’s Rip-Off Britain, ITV1’s Tonight show, and BBC Radio 4 and 5.

Copyright © 2024 Sunsave

Sunsave Group Limited (company number: 13741813) and its affiliates, Sunsave UK Limited (company number: 13941186) and Sunsave Energy Limited (company number: 13952135), together trading as “Sunsave”, provide renewable energy systems and finance and are registered in England and Wales at 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ. Sunsave UK Limited (FRN: 1008450) is a credit broker and can introduce you to a panel of lenders for the purpose of arranging finance. Sunsave Energy Limited (FRN: 979494) is a lender. Both Sunsave UK Limited and Sunsave Energy Limited are authorised and regulated by the Financial Conduct Authority. Finance subject to status, T&Cs apply.