The Hidden Truth: How Solar Panels Affect UK House Prices [2025 Data]

In the UK, solar panels offer more than just eco-friendly energy. Research from Swansea University shows they can add 6.1% to 7.1% to your property’s value. This means an extra £14,062 to £16,368 for the average home. These financial benefits complement the environmental advantages of solar energy.

Most people choose solar panels to cut their energy costs, but their impact on property value has become equally appealing. The market supports this trend – 69% of people would likely buy or rent a property with solar panels. A home’s EPC rating typically jumps by 18 points after solar installation, which can boost property value by over £5,000 for homes rated D or below. Solar-equipped homes can reduce electricity bills by up to 86%, making them particularly attractive to buyers seeking long-term savings.

How solar panels affect UK home value in 2025

People’s view of solar panels has undergone significant changes in recent years. The latest research backs up what early users always knew – UK homes with rooftop solar are worth more money.

Latest data from Swansea University and Solar Energy UK

A 2024 study from Swansea University provides clear evidence of the impact of solar on home values. The research team examined approximately five million home sales between 2012 and 2018. They compared houses with solar panels to those without. This is the most extensive longitudinal study to provide us with the clearest picture yet of the effect of solar panels on UK property prices.

Solar Energy UK also conducted research with Cambridge University, which examined a large amount of data but yielded more modest results. The gap between these studies suggests that solar’s value continues to grow as energy becomes more expensive.

Average value increase: 2% to 7.1%

Solar panels add different amounts to home values based on which study you look at. Swansea University found homes with solar were worth 6.1% to 7.1% more. For a typical UK home, that means an extra £14,062 to £16,368 in value.

Solar Energy UK’s study showed a smaller but still notable bump of 0.9% to 2%. The benefits vary quite a bit across different UK regions:

• Welsh homes see the biggest gain (£2,310 to £4,787)
• London properties get between £1,050 and £3,053 more
• Midlands houses increase by £1,891 to £2,722

Why energy efficiency is now a selling point

Energy efficiency has become a vital factor in buying decisions. About 80% of first-time buyers and 76% of second-time buyers say green features matter when they look for homes.

This reflects how people now understand running costs better. Homes with solar panels can cut energy bills by about £329 each year – that’s 29% off the average combined energy bill. Homeowners can generate extra income by selling surplus electricity to the grid through the Smart Export Guarantee.

EPCs have also become increasingly critical. Solar panels typically enhance a property’s Energy Performance Certificate (EPC) rating, which appeals to buyers who value both the environment and their financial interests.

The role of EPC ratings in property valuation

EPC ratings are crucial in determining property values across the UK. Here’s what you need to know about these ratings and how they connect with solar installations.

What is an EPC rating?

An Energy Performance Certificate (EPC) measures a property’s energy efficiency from A (most efficient) to G (least efficient). This mandatory document remains valid for 10 years and shows potential buyers how much energy a home uses, what it costs to operate, and ways to improve its efficiency. Most UK homes have a D rating, while newer properties built after 2012 usually achieve a B rating.

How solar panels improve EPC scores

Solar panels work like “energy-saving superheroes” for your property’s EPC rating. These installations generate clean electricity from sunlight, reducing your dependence on the grid and lowering your energy use. A standard solar PV system can boost your EPC score enough to move your property up one band – this makes a big difference to your home’s value.

EPC rating jumps and their impact on price

Better EPC ratings mean real money. Properties that move from D to C ratings gain about 3% in value (£9,003) on top of local market growth. Bigger improvements bring better returns. A jump from E to C adds 8.8% (£29,289), while upgrading from F/G to C ratings adds an impressive 19.6% (£64,444).

Case examples: Upgrading from D to C and C to B

Moving from a D to a C rating costs about £5,500 but adds £9,003 to your home’s value – that’s £3,503 in pure profit. Higher-band improvements offer even better returns. To name just one example, upgrading from E to C costs around £10,148 but adds £20,010 in value, putting nearly £10,000 more equity in your pocket. These improvements result from better insulation, improved heating systems, and clean energy sources, such as solar panels.

Key factors that influence how much value solar panels add

Solar installations can impact your property value in various ways. Several factors determine how much money these systems can save beyond just reducing energy bills.

System size and energy output

The size of your solar installation plays a significant role in enhancing the property’s value. Studies show that systems generating more electricity add greater value to homes. Most UK homes perform well with a setup of 3.5-4 kW. Larger installations are a significant advantage, as they boost both savings and property value. Homes with systems matched to their actual power needs see the best returns. Research confirms that value increases from 3.5% to 7.1% based on system size.

Battery storage and energy independence

Adding battery storage to solar systems significantly increases the value of homes in today’s market. Homes that combine solar with batteries can use up to 70% of their generated power, up from 50%. This setup appeals especially to buyers who want to be energy independent. Batteries protect against changing energy prices and power outages – features that buyers value highly. The higher upfront cost pays off through better energy security over time.

Age and condition of the system

The age of your solar system directly affects its value. Systems over 15 years old with lower efficiency may not significantly contribute to your property value. Modern panels typically last 25-30 years before losing efficiency, with yearly decline rates around 0.8%. A well-maintained 10-year-old system may still function at 92% of its original power, which affects its resale value accordingly. Buyers know they’ll need to handle future maintenance or replacement costs, so newer systems add more value.

Visual appeal and roof integration

The appearance of solar panels has a significant impact on a home’s value. Solar tiles or integrated systems look better than traditionally mounted panels. Some buyers find standard panels unattractive, especially on older homes. Modern panels appear sleeker and more appealing as technology continues to advance. Homes with systems that blend well with their architecture tend to sell for more.

Hardware quality and brand reputation

Equipment quality makes a big difference in added value. Installations by MCS-certified professionals add more value than those from non-certified companies. Buyers feel more confident with systems that have extended warranties (20-25 years). Quality varies among hardware; better panels can generate 363 kWh per year, while lower-quality ones might only produce 190 kWh. This difference shows up in long-term performance and value.

Why buyer demand for solar homes is rising

Homebuyers now place solar energy high on their priority list. Solar installations add value and attract potential buyers to properties.

Survey insights: 69% prefer solar-equipped homes

Market research shows buyers strongly prefer properties with solar panels already installed. The Eco Experts National Home Energy Survey 2024 shows that 65% of Brits would consider buying or renting a home with solar panels. This number dropped slightly from 69% in 2023. Only 4% of potential buyers say they are “doubtful” about choosing a solar-equipped property. These numbers show apparent market acceptance.

Energy cost protection and grid independence

Buyers look for solar homes mainly to protect themselves against rising energy costs. UK homes with solar panels save about £450 each year on energy bills. Recent studies suggest these savings could reach £530 per year under current energy caps. Homes with solar energy and battery storage can reduce energy bills by as much as 90% with the right tariffs. Many developers now guarantee zero energy costs for up to ten years on new builds through “zero-bills” schemes.

Environmental pride and future-proofing

Nearly 72% of homeowners say their home’s environmental impact matters. Solar power ranks as the UK’s most popular renewable energy option, with support from over 90% of the public. The government aims for net-zero emissions by 2050. Buyers view solar-equipped properties as being ready for future policy changes and potential restrictions on fossil fuels.

How solar panels affect time on market

Solar panel help properties sell faster. US data shows homes with solar panels spend 20% less time on the market than regular homes. UK estate agents report an increasing demand for eco-friendly homes. Savills notes that 49% of buyers rank environmental features as necessary in their purchase decisions. Solar-equipped properties command better prices and sell more quickly.

Conclusion

Solar panels have evolved well beyond their original reputation as just an eco-friendly energy solution. UK properties with solar panels show an apparent value increase of 6.1% to 7.1%. These systems provide substantial financial benefits along with environmental advantages and energy savings.

Numbers tell the real story. Homebuyers now see solar installations as must-have features rather than optional extras. Research shows that 70% of potential buyers prefer homes with existing solar infrastructure because they recognise both short and long-term benefits. Protection against rising energy costs remains the primary goal, and annual savings can reach £530 under current energy caps.

Your property’s EPC rating becomes more critical when you think about solar investments. Moving up just one band can significantly increase your property’s market value. Upgrading from band D to C adds about £9,003 to your home’s value, while bigger improvements bring even higher returns.

The value added to your home by solar panels depends on several key factors. The system size, battery storage options, age of installation, visual appeal, and quality of components all play significant roles in determining the overall value of the system. Homeowners should carefully evaluate these elements when planning solar investments with future resale in mind.

Market trends strongly favour properties with solar panels. These homes sell more quickly and achieve higher prices. Energy costs continue to rise, and environmental awareness grows stronger each year. This means solar installations will become even more attractive to buyers.

Solar panels do more than provide energy – they’re a smart financial move that pays off through higher property values, lower energy bills, and better marketability. Evidence shows that solar power brings real returns while helping homeowners build a greener future.