Yes, adding solar panels to a property can be a worthwhile investment and should be considered when you are thinking about property development finance costs.
Adding solar panels is becoming increasingly popular amongst property developers, as more and more buyers become concerned and aware of their environmental impact, and want to find ways of reducing their carbon footprint.
With all this in mind, we take a closer look at the advantages of having solar panels, and the main aspects you need to know about them before making a final decision.
How much do solar panels cost?
On average, solar panel installation will cost you anywhere between £5,000 and £8,000 in total.
How long do solar panels last for?
If you decide to install a solar PV system, you can expect it to last 25 years. It is very important to keep in mind that solar panels are a long-term investment.
The popularity of solar panels
Having solar panels installed can help to increase the property’s overall saleability.
For example, an independent study that was carried out by ING Direct showed that almost half of all prospective buyers stated they were the thing they most desired in a home.
As a result, by tapping into the growing popularity of solar panels you can increase the likelihood of your property selling, as it will be more attractive to potential buyers. It can also help to make your property stand out, and could well be the thing that encourages a buyer to make that final offer.
Energy savings = increased saleability
Solar panels also help when it comes to energy efficiency. With more prospective buyers looking to reduce their energy bills, it means that solar panels are helping to increase property’s saleability in this way too.
In a report carried out by the Department of Energy and Climate Change (DECC) that looked at the impact of energy efficiency and its influence on property valuations in the UK, this was confirmed. The DECC report shows that properties that had energy-saving measures helped boost house prices by a whopping 14% in total.
On average, this meant a property price boost of £16,000. Therefore, not only are solar panels are a long-term investment, but they are a cost-effective one too, compared to the initial cost of installing them.
Reduced carbon footprint
Not only can solar panels be a worthwhile property price investment, but they also help reduce carbon footprint.
Check the property is suitable for installation
Whilst there a number of advantages to having solar panels, it is extremely important you have made sure that the property is suitable in the first place. This is because not all houses will be suitable for a solar PV installation.
The main things to consider when it comes to installing a solar PV system are:
- You will mostly need a south-facing roof that has no shade or at least very little
- The tilt of the roof angle will also be important, affecting how much overall energy that is produced, as well as the money you spend
- Size of the solar PV system (the size you choose will depend on the roof and electricity used)
- The FIT rate you can get (remember that these rates reduce every quarter)
- Where in the country the property is located (for example, a house in south west England will get more sunlight than a house in Northern England)