Do Solar Panels Really Increase House Value in the UK?

With energy bills at record highs and sustainability becoming a major factor for homeowners, more UK households are investing in solar panels. But beyond cutting electricity bills, a common question remains:

Do solar panels actually increase house value in the UK?

The short answer is yes — but by how much depends on factors such as location, system size, property type, and buyer demand. In this guide, we’ll explore the evidence, look at how solar panels impact property values, and explain why more UK homebuyers are willing to pay extra for energy-efficient homes in 2025.

Why Buyers Care About Solar Panels in 2025

The housing market has shifted significantly in the last decade. Buyers today are not just interested in the number of bedrooms or size of the garden — energy performance and running costs are now top priorities.

  • Energy prices remain volatile, making self-generation attractive.

  • Climate awareness is rising, with buyers preferring greener homes.

  • Mortgage lenders increasingly consider EPC ratings (Energy Performance Certificates) in valuations.

  • Government targets aim for all homes to reach EPC rating C or above by 2035, which increases the value of energy-efficient properties.

This means homes with solar panels aren’t just cheaper to run — they’re often seen as future-proof investments.

How Much Value Can Solar Panels Add to a Home?

Research from estate agents and energy bodies suggests that solar panels can increase UK property values by 2%–4% on average, and in some cases even more.

  • Nationwide Building Society found that energy-efficient homes typically sell for 2–5% more.

  • Rightmove’s Green Homes Report (2023) showed that upgrading a property’s EPC rating can boost value by up to 16% in certain regions.

  • A solar panel system with battery storage is even more attractive, as buyers see it as future-proofing against rising bills.

Example:

  • Average UK house price (2025): £280,000

  • 3% uplift with solar: £8,400 increase in value

  • Installation cost: £6,000–£8,000 (for a standard 4kW system)

This means solar panels can often pay for themselves instantly in increased property value — on top of the long-term bill savings.

Impact of Solar Panels on EPC Ratings

Your home’s EPC rating (A–G) is a key factor in its value and mortgage eligibility.

  • Solar panels directly improve EPC ratings by reducing electricity use.

  • Homes with EPC ratings of C or above are more attractive to buyers and landlords.

  • As regulations tighten, homes with poor EPC ratings could lose value, while solar-equipped homes become more desirable.

In fact, some mortgage lenders are already offering “green mortgages” with better rates for energy-efficient properties — another indirect way solar adds financial value.

Do Buyers Actually Want Solar Panels?

A big part of the equation is buyer perception. Surveys consistently show:

  • 82% of buyers would pay more for a home with lower running costs (YouGov, 2024).

  • 74% of buyers say energy efficiency is now as important as location (Rightmove, 2023).

  • Younger buyers (millennials and Gen Z) are particularly eco-conscious and value green features.

Estate agents also report that homes with solar panels often sell faster than average, as buyers are reassured by lower bills.

Regional Differences in Added Value

The value solar panels add can vary depending on location.

  • South of England & London – Higher property prices mean the % uplift translates into larger monetary gains. Buyers here are also more eco-conscious.

  • Scotland & North of England – Solar panels still add value, but buyers are more motivated by bill savings than “green” appeal.

  • Rural areas – Off-grid or poorly serviced homes with solar + battery storage can see a significant boost in value due to energy independence.

Solar Panels With vs Without Battery Storage

Battery storage is becoming a major factor in property valuation.

  • Solar without battery: Attractive, but buyers know daytime usage limits benefits.

  • Solar with battery: Seen as a premium upgrade, allowing stored power to be used at night and during peak tariffs.

A home with solar + battery can save £1,000+ annually, making it even more valuable to buyers.

Do Solar Panels Ever Reduce House Value?

In most cases, solar panels add value — but there are exceptions:

  • Old or outdated systems – Buyers may see them as costly to replace.

  • Poorly installed panels – If installation looks messy or has damaged the roof, it could put buyers off.

  • Leased solar panels – Some older systems were installed under “rent-a-roof” schemes, meaning the panels are owned by a third party. This can complicate sales and sometimes reduce value.

For maximum value, panels should be owned outright, modern, and installed by an accredited MCS-certified installer.

How Solar Panels Compare to Other Energy Upgrades

Solar panels aren’t the only way to boost home value through energy efficiency.

  • New boiler: Adds value by improving EPC rating, but less visible to buyers.

  • Insulation: Improves comfort and bills, but less “marketable” in estate listings.

  • Heat pumps: Attractive to eco-conscious buyers, especially with grants, but higher upfront cost.

Solar panels are unique because they are visible, marketable, and easy for buyers to understand in terms of bill savings.

Return on Investment: Value + Bill Savings

When weighing up solar panels as an investment, you need to combine:

  1. Property value uplift – 2%–4% on average.

  2. Annual savings on bills – £500–£900, more with battery storage.

  3. SEG payments – Up to £200 per year.

  4. Lifetime value – £15,000–£25,000 savings plus added resale value.

For many homeowners, this makes solar panels one of the most financially rewarding upgrades in 2025.

The Future of Solar and House Prices

As the UK pushes toward net-zero targets, demand for solar-equipped homes is expected to rise.

  • By 2030, it’s likely that most new homes will include solar by default.

  • Homes without renewable features may become less desirable.

  • Buyers are becoming more educated, asking estate agents about running costs and EPC ratings upfront.

This means installing solar panels today doesn’t just save money now — it future-proofs your property for the decade ahead.

Key Takeaways: Do Solar Panels Increase UK House Value?

  • Yes — solar panels can increase house value by 2%–4% on average, more with battery storage.

  • Buyers are willing to pay extra for homes with lower bills and better EPC ratings.

  • Properties with solar panels often sell faster and attract eco-conscious buyers.

  • To maximise value, make sure panels are owned outright, modern, and installed by accredited installers.

Conclusion

Solar panels aren’t just about saving money on electricity — they’re about protecting your property’s value in a changing housing market.

As energy costs rise and efficiency becomes more important, homes with solar panels will continue to stand out. Whether you’re planning to sell in the near future or simply want to future-proof your home, investing in solar panels in 2025 is one of the smartest decisions UK homeowners can make.

👉 Check if you qualify for solar panel funding today and see how much you could save — and how much value you could add to your home.