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Impact of solar energy on property values in 2025

21st March 2024

Some recent studies claim that adding solar to your home can increase your property’s value by up to 25% - one in particular was commissioned by Insurance giants Admiral.

We’d be very surprised if you saw the equity in your home grow by that much, but we would agree that solar DOES increase a home’s value.

For what it’s worth, Admiral’s method was to survey 2000 UK homeowners and find out how they perceived their energy use … perceive being a key word here … they then took data from Rightmove on the relevant home’s value.

For a more realistic figure we can take a look at a 2013 government report that states homes with solar could increase in value by 14%.

In the US, Estate Agents Zillow found properties with solar sold for an average of 4.1% more than similar houses without solar.

Average is another word we need to be careful with because every home is unique, and every buyer is looking for something different.

Obviously if you have a home worth 2 million and you fit 20 panels, it’s not going increase its value to over 2.5 million.

Why does solar increase your home’s value.

It’s all to do with the modern world – good and bad!

Your bills will be cheaper – This is a fact, not just marketing - solar saves you money on your monthly bills. Even if you had a system that produced 1kW a day, you’d still be saving pounds a week. Free electricity from the sun will always be cheaper than buying from a company that needs to make a profit. Logic.

Global energy market– The last few years have shown us that we used to take cheap energy for granted. But with conflict, unstable governments, weather and availability all effecting the price of fuel, we never really know what our electricity is going to cost from one month to the next.

Future Proofing – To follow on from the above, none of the global problems we have now are going to go away anytime soon. Plus, when it comes to fuel, that’s just going to get more and more scarce. Being able to produce your own power may be essential in the future.

The Environment – While as an industry we don’t find environmental factors to be the biggest driver of people moving to solar, it is still important to a lot of people, especially the younger generations.  Saving 1.6 tonnes of CO2 per year is a big selling point to a certain demographic.

Making money – It’s not just the potential to save money with solar that is appealing, you can also make money. Using Smart Export Guarantees (SEG), you can sell excess electricity back to your energy supplier.

Is this just UK Energi’s way to get more customers?

No! We were as surprised as you – so we had to check with the experts.

Another recent study claimed:

‘Government studies show improving the Energy Performance Certificate rating means homeowners can add as much as 14% to the value of homes. Renewable energy sources, such as solar, are one of the ways to improve EPC to power homes.’

What is an EPC rating?

We are sure that most people are aware of EPC rating, especially landlords and people who live in third party accommodation.

Basically, it’s the way we ‘score’ the efficiency of a home – from flats and apartments to 3 bed semis and country mansions.

You accrue points for each measure of efficiency such as the heat retention of your house, the type of insulation you have and, of course, how you get your energy.

Solar is considered renewable and, as the sun will be shining for at least the next 4 billion years, sustainable.

That’s why solar can increase your EPC rating by up to
 

So, how does a Solar Energy System work?

You wouldn’t want to put anything in your home you weren’t fully au-fait with, so let’s look at what’s involved.

Solar, or PV, Panels – Solar panels contain lots of tiny cells that contain silicone. Silicon molecules generate electricity when hit by the sun. There are wires laying across the surface of the silicon that move electrical energy away from the and  into your inverter. Most PV panels have either 60 or 72 cells. UK Energi use Aiko Black on Black 455W panels that contain 72 cells. 

Inverter – This is the powerhouse of the system and makes it possible to use the energy generated by your panels. It does this by converting DC electricity to AC. ‘Inverters are just transformers really, and you already have them all over the house to convert AC to DC in some of your appliances. 

Electric Meter – You’ll already have an electricity meter, but it will still be included in a system if you are connected to the grid – which you will be in 99% of cases.

Battery storage – You don’t have to have batteries, but we would definitely recommend them. Advanced Lithium-Ion Batteries are now the most popular in the solar industry because they are the best way to store your electricity – reliable, long-lasting and sustainable.

Why add batteries to your solar energy system

If you don’t have batteries, then you’ll be wasting your generated electricity – especially in summer … plus, every 1kW you generate and use, is 1kW less you have to pay for.

When you have a battery, or several batteries, you will be in a much better position to control your energy use.

Solar batteries aren’t cheap but that are getting cheaper, and they last 10 years or more.

How much can you save with solar?

Let’s face it, this is the million-dollar question, and the basis for the solar debate.

The amount that you save depends on many things including the weather, your home, your circumstances and the tech you install.

So, let’s cut to the chase and look at some figures from the Energy Saving Trust.

Based on a 4-bedroom house in Manchester with gas heating and a hot water tank heated using a PV diverter.

Home all day – Saving = £600 a year (average)

Home in the morning – Saving = £570 a year (average)

Home in the afternoon – Saving = £550 a year (average)

Out until 4pm – Saving = £520 a year (average)

Out until 6pm – Saving = £510 a year (average)

This is based on generation, but the figures change dramatically depending on what SEG you use and how much you sell back to the grid.

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