In the United Kingdom, the integration of solar energy into new property developments is not just about reducing carbon footprints; it's also proving to be a significant factor in enhancing property values.
In this blog, we'll explore the impact of solar energy on property values in new developments across the UK in 2024.
The Rise of Solar Energy:
Solar energy has experienced a remarkable surge in popularity and affordability over the past decade.
Technological advancements, investment and popularity have meant that prices have dropped by over 80% in the last 10 years.
Couple that with government incentives and growing environmental awareness, and solar power has become an increasingly attractive option for homeowners and property developers alike.
What’s more, it seems that incentives like the SEG scheme, in which energy suppliers are obliged to buy back your excess power, and an raft of new government grants is only going to increase people’s interest in solar – and what it can do for their homes.
Impact on Property Values:
The integration of solar energy systems into new property developments has been shown to have a positive impact on property values.
Several factors contribute to this trend:
Energy Savings: Homes equipped with solar panels can significantly reduce electricity bills by generating their own clean energy. This cost-saving potential makes properties with solar energy systems more attractive to prospective buyers, leading to higher demand and increased property values.
Environmental Benefits: Solar-powered homes are environmentally friendly, producing fewer greenhouse gas emissions and reducing reliance on fossil fuels. In an era of heightened environmental consciousness, properties with sustainable features like solar panels appeal to eco-conscious buyers, driving up their market value.
Enhanced Marketability: Solar energy systems enhance the marketability of properties by offering a unique selling point. Developers can differentiate their projects in a competitive market by incorporating sustainable features that appeal to buyers seeking energy-efficient homes. This competitive advantage translates into higher property values and faster sales.
Future-Proofing: With the UK government's commitment to achieving net-zero carbon emissions by 2050, the energy-efficient property offer is expected to rise. Homes equipped with solar energy systems are seen as more future-proof, as they align with long-term sustainability goals.
EPC Rating
The EPC rating of properties is becoming more and more important weather it’s a private home or rental. Customers will struggle to get a mortgage on any property rated under C – and it’s illegal to rent a property that doesn’t conform o that standard. A solar energy system can increase a home’s EPC rating by up to 15 points.
Case Studies:
Numerous case studies across the UK have demonstrated the positive correlation between solar energy and property values. For example, a study conducted by the Centre for Economics and Business Research (CEBR) found that homes with solar panels sold for an average of 14% more than comparable properties without solar panels.
Similarly, a report by the Royal Institution of Chartered Surveyors (RICS) highlighted those properties with energy-efficient features, including solar panels, tend to command higher prices and sell faster than those without such features.
Admiral money conducted their own search and claimed properties can increase in value by up to 25%!
We feel that’s a little excessive, as it’s all relative. A property worth 2 million pounds will not up it’s value by 25% by adding a solar system, but a home that costs £150,000 may.
Conclusion:
In conclusion, solar energy is playing an increasingly significant role in shaping the property market in the UK.
New developments that incorporate solar energy systems not only contribute to a sustainable future but also enjoy higher property values and greater marketability.
As the demand for energy-efficient homes continues to grow, solar-powered properties are poised to shine bright in the UK real estate landscape of 2024 and beyond.
If you're planning a new build site, visit our new build page to learn more about all things renewable!
