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Will solar panels affect the sale of my house?

Posted by Cathy Debenham on 1 October 2013 at 12:40 pm

Q: I recently purchased a buy to let property with a mortgage and would like to know my options for solar panels. I would be buying the panels outright but I am unsure as to whether I can benefit from the feed in tariff as my property has a mortgage. Also would there be issues with re-selling the property?

A: If having a mortgage prevented people accessing the feed-in tariff I suspect that take up of solar panels would be much reduced. As long as you are the owner of the property and of the solar panel system that is installed there should not be a problem.

There have been difficulties with mortgage lenders where people are taking up a 'rent a roof' scheme. This is where a company installs solar panels on the roof free of charge, and the owner/resident benefits solely from reduced electricity bills that result. The company that owns the solar panels gets the feed-in tariff. 

Installing solar panels on a property that you plan to rent out strikes me as a good idea. You will make it more attractive to tenants, as their electricity bills will be lower than average. You will benefit from the feed-in tariff payments.

There isn't much conclusive evidence of what difference it will make when you come to sell the property. The most recent research I have seen found that solar panels don't necessarily add value to the property, but if people were considering two similar properties, the solar panels would be a 'deal-sealer'. However, some people think solar panels are ugly, and they may well be swayed against. My expectation is that as installations rise and become the norm, estate agents and the public will understand the benefits better, and they will move up the list of desirable additions to a property.

More about solar PV on YouGen

YouGen guide to solar electricity

YouGen guide to the feed-in tariff

Photo: London Permaculture


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1 comments - read them below or add one


JSHDComment left on: 1 October 2013 at 2:23 pm

Solar PV with FIT payments should increase the value of the property.  Although, the payback for SPV is quite wimpy in comparison with that for Biomass Boilers under the RHPP/RHI payments.....

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