Solar panels and house prices: what a new UK report means
A new report links solar panels to higher sale prices. We explain what it says and what a system costs now, with 0% VAT due to end on 31 March 2027.
A new report says solar panels can add up to 7.6% to what buyers will pay for a home. Our live model puts a typical 6 kWp system at £12,500, within a range of £9,800 – £16,300. Installing before 31 March 2027 means paying 0% VAT, rather than 20% afterwards.
What the report says
According to Renewable Energy Magazine, which cites BOXT's findings:
- 23% of UK homeowners who bought solar panels say a higher property value was their main reason.
- Buyers are prepared to pay up to 7.6% more for a home with panels. On an average UK house price of £270,000, that is about £20,547.
- Panels can raise a home's EPC rating by more than two levels.
- Using The Eco Experts' survey data, the magazine reports average annual bill savings of £462.7 for homeowners with panels.
- Surplus power can earn extra income through the Smart Export Guarantee.
- The Eco Experts calculate that the average household takes almost 15 years to break even. The panels then typically last at least another 10 years.
The 7.6% is a ceiling, not a typical result. Whether a buyer pays more will depend on your area, your roof and the state of the market when you sell.
What it means for the cost of solar
We don't take sale-price uplift on trust, and you shouldn't build a plan around it. A fair test is to compare what you would pay with what you would save and earn.
For a 6 kWp system, our model gives:
| Tier | Cost |
|---|---|
| Basic | £9,500 |
| Mid-range (typical) | £12,500 |
| Premium | £16,000 |
These figures are labour hours multiplied by local rates, plus materials, checked against market prices and real quotes. See our full [solar panel cost guide](Solar panels) for how they are built.
The report's roughly 15-year break-even sits in a wide gap between the basic and premium tiers. A cheaper system will pay back sooner, and a dearer one will take longer. Your payback depends on how much of the power you use yourself, your roof orientation and your tariff.
Adding a battery
A battery raises the upfront price but lets you use more of your own generation in the evening. For a mid-range system, our model gives:
- No battery: £9,500
- 5 kWh battery: £12,500
- 10 kWh battery: £15,600
- 13.5 kWh battery: £17,800
The full comparison is below.
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| No battery | £9,500 | £7,400 – £12,300 | – |
| 5 kWh battery | £12,500 | £9,800 – £16,300 | – |
| 10 kWh battery | £15,600 | £12,200 – £20,300 | – |
| 13.5 kWh battery | £17,800 | £13,800 – £23,100 | – |
The VAT deadline
The government's 0% VAT rate on installing energy-saving materials, including solar panels and batteries, runs until 31 March 2027. The Eco Experts' Max Schwerdtfeger told the magazine that homeowners should "act decisively" before it ends.
We'd add a caution. A deadline is a reason to start getting quotes early, not to sign the first one. Our figures include 20% VAT except where 0% applies, so a job that slips past the cut-off could cost noticeably more than the figures above. Installers' diaries fill up ahead of deadlines, so allow for lead times.
If you are thinking of selling
- Ask installers for the expected EPC effect in writing, and get a fresh assessment once the panels are fitted.
- Keep the installation paperwork and warranties together. A buyer's solicitor will ask for them.
- Don't expect the full 7.6%. Treat any uplift as a bonus, not a payback plan.
Other work to price alongside
If you are improving a home before a sale, or to cut bills, solar is one of several options. Our guides cover [air source heat pumps](Air source heat pump), which also qualify for 0% VAT until the same date and for the £7,500 Boiler Upgrade Scheme grant in England and Wales (the installer must be MCS certified). [External wall insulation](External wall insulation) is also eligible for the 0% rate.
Check your quote
Before you sign, run any solar quote through our "is my quote fair" tool. It compares the price with our live model for your system size and region, so you can see whether you are being quoted above the range. Get at least three quotes, and make sure each one states system size, panel and inverter make, battery capacity and whether VAT is included.