There are a number of improvements people can make to their property that will lead to an increase in the value of a property. With there being so much choice, it is often difficult to know which option is best for an individual, but many people have advocated the use of solar panels.
First of all, solar panels can be of benefit for all homeowners by reducing energy bills and providing subsidies and benefits. In recent years, the level of subsidies provided has fallen, making solar panels less attractive but equally, the cost of installation has fallen, so many property owners have been able to justify the decision.
Installing solar panels can be seen as a great way to save money and obtain benefits in the long term but the shorter term benefits are not so clear. This means many people are not so sure about whether investing in solar panels significantly adds value to their property.
When it comes to selling your home with solar panels, many industry experts suggest that the ideal time to sell is between 10 and 15 years of having the panels installed. This is because this should provide enough time to recoup the costs of the installation in energy savings and Feed in Tariff ( FiT) payments while there will still be plenty of scope for the new owner to benefit from reduced bills and the remaining FiT payments.
If you are confident that the cost of installing panels will increase the value of your home by a satisfactory amount, you can install with the intention of selling quickly but this is certainly a personal matter. If your solar panels have been in place for twenty years, it is likely that you will have recouped all of the benefits from these panels and the new buyer will not find there to be too much point in paying a premium.
The downside to selling your home so soon after installing solar panels is that you may lose out from the initial investment. Solar panels are still fairly costly to install. This cost is usually justified, as you should earn the initial pay-out back in energy savings and FiT payments within about 7-8 years. Therefore, it may be more beneficial to install solar panels if you are planning on staying in your home for a while and not if you are planning on moving within the next 5 years.
Another thing to consider when thinking about the value of solar panels is the method of purchase. If the solar panels were bought outright, this will provide a greater return for the property seller. However, if the solar panels were purchased through a loan which is linked to the property, this is a cost that is passed on to the buyer of the property.
A 2016 survey by the National Association of Estate Agent brought about a very mixed response on the question of whether installing solar panels impacted on the value of property. The findings were:
There is no doubt a variance in outcomes and there are many factors to consider when looking at adding solar panels to improve the value of property. It is an area worth considering, and there are other benefits associated with solar panels, but with so many ways to add value to a home, it may be that there is another method that would be best for your needs.
As with all property decisions, it is vital that people undertake research and consider it from their viewpoint.