Will solar panels increase my property value?
I'm interested to understand if adding solar PV panels to our home will increase my property value, and as such return the initial investment. Also do banks include this in their valuations?
Asked on Jul 12 2013,
Home Improvement in Havant |
Because of the relatively new nature of solar panels, it is still difficult to tell what sort of impact they will have when it comes to the value of a home. Also, it is unlikely that an estate agent or a bank will see it is an aspect that will put the price up, so it ultimately depends on the buyer themselves and what value they see it adding.
Some will love the idea of buying a house with solar panels on the roof because of the fact it will mean lower costs for energy bills for the next few years potentially, while there are others who will believe it detracts from the home because of the aesthetic value it can remove.
Ultimately it will come down to how old the panels are when you decide to sell the house though. They only last 25 years before they need to be replaced, so if you add them and then stay put for another few years, it can mean they are worth less than they were earlier in their cycle.
Answered on Jul 15 2013,
It's not a case of having an affect on the value of the property. You have got to be very mindful and careful when having solar panels installed as some companies will have a lease on the solar panels for 25 years and as they have a charge on your property it is extremely difficult to sell your property with is lease in place.
Answered on Aug 23 2013,
I think you need need to further refine your question by stating what kind of solar panels, leased or owned outright? Many people have gone for the option where a company offers to install panels on their roof and then they lease the roof space to that company for 20 years. From what I've heard, banks and building societies are still not certain about this relationship so it's quite likely problems will be encountered when applying for a lease. If you go for the other option, where you own the panels and pay for them yourself, then that shouldn't be a problem for anyone trying to get a mortgage on your property. Will it increase the property's value? Well as already stated the mortgage company may not take them into account when valuing the property so if the buyer is borrowing to the max he may have a problem. I think it quite likely that people undertaking such an investment are likely to be thinking of staying put, so there may not be many houses with paid for solar panels up for sale, hence making it difficult to find the answer. My gut tells me that most people will see solar panels as an asset, but what price they will put on that asset, that's the question.
Answered on Sep 26 2014,
Having had Solar PV panels which are outright owned by me for 5 years now, I can not understand the resistance to the automatic value increase to your house.
My panels give me a return of between £1.700 to £1,900 PA. There is no maintenance cost and are guaranteed for 20 years. The inverter has a 10 year guarantee. All my utility bills, Electric, Gas and Water are covered by the FIT so it is a no brainer as far as I am concerned. Yet my daughter, who is an estate agent, says it makes no difference and it may even put buyers off because of aesthetics and surveyors may consider the installation unproven so pass negative comment in their report.
The reality is they are an asset that a buyer would appreciate but no one in the industry is interested in championing.
Answered on Sep 11 2016,
Solar Panels and Inverters now have a 99 year guarantee so with increases in Electricity prices of 15% (March 2017) I think it is a solid investment. I am seeing more and more solar panels and believe that if energy increases keep at the same rate then I can see Solar becoming the norm.
Answered on Apr 11 2017,
Gpwilliams (above) is incorrect solar panels and solar inverters do not have 99 year guarantees. Typically, inverters have 5 year guarantees and panels have a performance guarantee, which guarantees they achieve at least 90% of rated output at the 10 year point in their life and 80% of rated output at 20 years.
Answered on Jun 29 2017,
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