Do Solar Panels Increase Your Home’s Value?

Thinking about installing solar panels? You’re not just saving on energy bills—there’s good news for your home’s value too. Recent UK research shows that solar panels can give your property a real boost.

How Much Can Solar Panels Increase Your Home’s Value?

A 2024 academic study using Zoopla data looked at over 1.3 million home sales from 2012 to 2018. It compared homes with and without solar panels while controlling for other features like size, age, renovations, and location. Here’s what it found:

• Homes with solar panels sold for 6–7% more than similar homes without them.
• On an average UK property (£230,536), this is £14,000–£16,000 extra at sale.
• Even using more traditional methods, the uplift is still 3.5–5.6%, meaning the extra value isn’t just “luck”—it’s real and measurable.

The premium varies depending on where you live and what type of home you have. Let’s break it down.

Regional Differences: Where Solar Panels Add the Most Value

Not all areas see the same boost, but solar still generally helps. These are approximate uplifts for homes with solar panels:

These figures account for other property features like size, age, and renovations. They show the added value from the solar panels themselves.

Interestingly, some areas with lower sunlight still see strong premiums. This suggests buyers care not just about energy generation, but also the savings on bills and environmental impact.

Who Benefits Most?

Solar panels don’t just add value randomly—they help certain types of homes more:

• Lower-priced homes – Energy bills are a bigger part of a family’s budget. Solar panels reduce running costs, which makes the home more attractive and increases its relative value.
• High-end homes – Buyers often value solar as a green status symbol. Having eco-friendly features can make a property stand out.
• Homes in lower-income areas – Buyers in these regions particularly value the cost savings on energy bills.

Why Solar Panels Add Value

Why Solar Panels Add Value

There are several reasons buyers are willing to pay more for homes with solar panels:

1. Lower energy bills – Homes with solar panels cost less to run.
2. Better energy efficiency ratings (EPCs) – Homes that are greener and more efficient sell for more.
3. Visible commitment to sustainability – Buyers see solar panels as a sign the homeowner cares about the environment.
4. Growing interest in green homes – More buyers are actively searching for energy-saving features.

How the Solar Premium Has Changed Over Time

Early in the 2010s, solar panels added up to 8–10% to a home’s value. By 2017–2018, the premium had dropped to low single digits.

Why the decline? Solar panels have become more common and cheaper to install, so buyers pay less for novelty and more in line with actual cost savings.

Even now, the premium remains positive, showing buyers recognise the ongoing financial and environmental benefits.

What This Means for You

Installing solar panels isn’t just about the environment or cutting bills—it can make your home more attractive if you ever decide to sell. Even modest panels that improve energy efficiency can make a noticeable difference in sale price.

If you’re thinking about installing solar panels, here’s what to consider:

• It’s an investment in your home – Panels can increase your home’s value by thousands of pounds.
• It helps your future buyers too – Even modest installations improve energy efficiency and make your home more attractive.
• It’s practical and sustainable – You’re lowering bills, reducing your carbon footprint, and making your home smarter.

Tips to Maximise Value

• Choose solar panels that efficiently match your home’s energy needs.
• Combine with other upgrades, like insulation or a new boiler, to increase your home’s overall energy efficiency.
• Keep your panels well-maintained—buyers notice neat, functional installations.

Bottom line: Installing solar panels is about more than saving energy. It’s a way to make your home more valuable, reduce bills, and signal a commitment to sustainability. And that’s a win for you today and for any future sale.