Adding solar panels to domestic properties certainly has its advantages and disadvantages, but do solar panels affect the valuation of a property when the time comes to sell?
There are quite a few contributing factors to look at when trying to answer this question, which we’ll discuss below, first off it is important to address some of the burning solar panel questions.
Common Solar Panel Misconceptions
I need sunshire for solar panels to work
It’s all about daylight, not sunshine. Panels can still generate electricity on overcast or gloomy days, therefore it doesn’t necessarily mean your property needs to be a sun hot spot to generate electricity. It’s powered by UV rays which can penetrate cloud coverage. That’s why you can still get burnt on holiday, even when it’s a cloudy day!
Do I own the solar panels on my property?
Not all solar panels are actually owned by the property owner. Some companies will provide the solar panels to add to your property in return for your surplus energy generated. Some homeowners prefer this option as the initial cost of solar panels can range from €3000 to €7000; a large sum to fork out in one go. However, if they are owned by a third party, this is unlikely to affect the value of your property and it can lead to disputes at the survey stages when it comes to selling the property too.
If the solar panels are owned outright, then perhaps it may make your home more saleable to those who would like to produce their own green energy. It is also a much more straightforward process of selling as much like any other building alteration, it will be surveyed as part of the home overall and therefore taken into consideration at the valuation stage.
Property aesthetics
As with most aspects of a property, buyers and sellers have different tastes that can affect how desirable a property may be. Solar panels are no exception to this rule. Some buyers may not like the aesthetics of solar panels, and perhaps have no desire to utilise them, whilst others may be particularly keen on generating their own renewable energy. This means that solar panels affect the saleability of a property both positively and negatively; it really depends on the buyer. There have been notable occasions however where savvy buyers have offered higher asking prices for property with solar panels, over those without. So if you find the right buyer, it can certainly work in your favour!
Long term costs
The Energy Saving Trust says little maintenance is required on a properly installed, well-designed solar PV systems. Although you’ll likely need to replace the inverter – a gadget which is a key part of the mechanism – within about 25 years, with the price being around €600-€700.
Of course, though, things can go wrong. If so, check the installer warranty you get – if you purchase SolarWatt panels from Solar Power NI for example, they come with a warranty for up to 30 years! If the panels are damaged by something unexpected, like a storm, you may also be covered by buildings insurance – check with your insurer before you have them installed.
In conclusion, it’s difficult to give a yes or no answer to the question ‘do solar panels affect the value of my property?’ The value is created in the ability to save on energy bills – particularly as these have increased by 37% on average during lockdown. As well as the ability to sell surplus generation back to the grid.
Yet personal taste, ownership and future costs are factors to consider too. Marketing a property to display the benefits of solar panels may be the best option, it’s just important to remember that whilst solar panels may be a huge positive to some buyers, they will inevitably be a negative to others.
Recent property sales
Surveying recent property sales has indicated that the list value of a property is marginally affected by the installation or solar panels, or not at all. However, buyers could weigh up their interest in the property by opting for the one with solar panels installed. So it might just help sell your home that little bit quicker!
