Do solar PV panels increase the value of my property?
Solar photovoltaics (PV) is one of the most established renewable technologies, with a number of domestic households adopting solar PV to meet a portion of their electricity demand.
But when it comes to selling your home, what are the benefits of solar panels?
In Northern Ireland, solar PV installations can have the following benefits when it comes to selling your home:
- Any home that is being sold (or rented), is required to have an Energy performance Certificate (EPC). An EPC indicates how energy efficient a building is, with ratings from A (very efficient) to G (inefficient). A higher rating is desirable as it would suggest the building is efficient, hence it would have lower energy bills than a house with a lower rating. Installing solar panels can raise the score of an EPC, which makes the house more appealing to buyers, due to the associated reduction in energy bills. Read more about EPCs in our blog.
- The new homeowner will benefit from free, green electricity produced by the solar panels and therefore will also typically experience low electricity bills (assuming they utilise the PV generation during the day and it is not spilled to the grid), this in turn may reduce their individual carbon footprint.
- If the solar PV system is registered under the Northern Ireland Renewables Obligation Scheme (NIRO), which is a government incentive scheme, the new owner may benefit from additional revenue in the form of annual Renewables Obligation Certificate (ROC) payments. Once a home is sold, the system is transferred into the name of the new home owner. These payments last for 20 years from the date the system was registered under the scheme, so for example, if the house is sold 5 years from this date then the new owner will receive the ROC payments for the remaining 15 years.
- If you are thinking about installing solar PV now, there are currently no grants or government incentives in place to avail of in Northern Ireland. However, the price of solar PV panels has significantly decreased in recent years, which means installation/capital costs are lower. The PV system will also result in a reduction of imported grid electricity (if the generation is used in the household during the day) and will be beneficial to the home owner due to the volatility of the electricity market prices. There are also other ways to maximise the benefit of the generated electricity, such as battery storage.
A survey conducted in England, by the Department of Energy and Climate Change (DECC), now Business Energy and Industrial Strategy (BEIS), found that improving a home’s EPC from band G to E, or from band D to B, could mean adding more than £16,000 to the sale price of the property.
One final thing to mention, and something to look out for in the future, is the building regulations in Northern Ireland. These could potentially change, to mandate that renewables must be incorporated into homes, specifically new builds. This has already been incorporated into the Republic of Ireland’s building regulations (Part L), where part of the energy consumption of a dwelling must be provided by a renewable energy source.
If you have any queries about buying or selling a home with solar panels, contact our small-scale PV team on 028 9072 7760 or email us by clicking the button below.