Are solar panels the right move to add property value – a debate for many UK residents to consider. With so many green additions to the home these days, do solar panels add property value and should you consider the consequences before install?
This week the news is all about the recent government reduction of its feed-in tariffs, this in turn threatens the industry just as it becomes efficient. Upto recent months many have looked at Solar Panels as a stable income stream, the feed in tariff has attracted investors, both commercial and private, who can see that a 9-10% return is possible. But with the reduction the question of value on property is ever more important.
We asked Dorset Renewables for an article on whether they felt how they felt solar panels add value to a property?
So naturally home owners are asking, do I rush into Solar panels while there is government incentive, or is it too late? Depending on your enviromental view as that was one of the main reasons behind the incentive, to push the market towards renewable energy and not primarily the financial incentive.
Are Solar Panels a Good Investment If I’m Looking to Sell Soon? Recent figures suggest you are unlikely to recover your investment if you sell immediately after installation as things stand at the moment.
Will my solar panel installation add value to my property when it comes to selling in the future?
Well you can’t ignore Gas and Electricity prices are rising and will continue to do so according to all forecasts. The feed in tariff payment per kWh will probably be revised downward in April 2013 for new installations meaning that existing installations will be more valuable and there are suggestions in some quarters that in future the size of a home’s carbon footprint could affect its council tax liability.
The debate comes down to the fact that some estate agents aren’t recognising the value while others are. What is true is that solar pv panels defnitely do not lower the property value.
As with other installations eg central heating, double glazing, a new boiler and so on if two properties were for sale at the same asking price, you are liekely to offer on the property with the additional installations.
If your property is properly marketed and focus on the fuel savings and tariff payments available as a result of solar panels is clear to potential buyers then it should result in a higher chance of competitive offer near to the asking price
Conclusion on the question – Do solar panels add property value?
What is true is that solar pv panels defnitely do not lower value and they save money for the homeowner – Solar PV will definitely give you an edge in a buyers market.
With the edge on other properties the price will certainly have a stronger chance of increasing. Probably best not to add solar panels just before selling though!