Solar Panels adding value?

csh_2

Hello, I've seen a house I might like and am going to arrange to view it however, it is extremely overpriced by around 20-30k which is around 30%.
It's just an average house but has a bank of solar panels on one side on the roof.
Do people who get solar panels believe it adds value to the house? I get the impressions these folks may be trying to recoup what was spent but to me, and I'm guessing to the bank (?) solar panels are just personal choice and don't add any real value.

What do people think? in particular what do people think they do to a mortgage valuation?

Thanks

marlot

I guess if they managed to get signed into one of the generous early tarrifs then there is an income stream. You'd need to check exactly what they signed into - it could be that they've 'rented' the roof for 25 years to someone else, who keeps the bulk of the money.

My concern would be whether there has been any damage to the roof during the installation, and whether the roof can take the weight. I'd certainly be examining the outside with binoculars, and the inside for any signs of movement.

But ... I'd probably move on to the next house.

anselld

An early installation will be on a generation tarrif of circa 45p per unit and generate an income of £1200-£1500 per year in addition to saving on bills.

Ask to see details of the MCS Certificate and the FIT contract and ensure that the FIT contract is transferable to you.

Bear in mind that the FIT contract only runs for 25 years so you will still be responsible for maintenance. It should have cost no more than £12-£15k new so a few years in, even if everything is ideal, it would add less than that. I would say £10k absolute max for a 4kWp system on the top tariff.

hazyjo

Gawd, I can't stand the things so it would devalue it for me! Cheaper bills though... dunno how these things even work. Am sure it takes donkey's years to recoup the money spent on what you save on bills. Not sure why they added them if they were planning on moving.

Personally, I'm not sure I'd be adding any value because of them. Obviously some will love them and if they were planning on adding them, it'll save them the £10-15k or whatever they cost. Those people might think it's worth paying more...

Jx

AllenMansurian

House prices are likely to follow trends in the United States, where solar panels are more widely used. Research by the US National Renewable Energy Lab has shown that houses powered by solar energy are likely to sell for 17% more than those powered by non-renewable fuel, and are also likely to sell 20% more quickly when put on the market.

happycamel_2

Check carefully who owns the panels and who has to bear maintenance cost. I'd also wantbe certain the roof hasn't been damaged and can take the weight. Some companies install and maintain for free in return for a percentage of the income but make sur that if the tariff falls you wouldn't have to make up the difference. The lifespan of these systems in our climate (which freezes) is uncertain but around 15 - 20 years. Bear in mind that after that you'd need to replace or remove them and fix the roof.

I get why they are a good idea in Florida but I wouldn't buy a house with some here. Too many pitfalls and not enough sunlight.

chris_m

marlot wrote: »

I guess if they managed to get signed into one of the generous early tarrifs then there is an income stream. You'd need to check exactly what they signed into - it could be that they've 'rented' the roof for 25 years to someone else, who keeps the bulk of the money.

In which case it could also be tricky getting a mortgage - IIRC lenders aren't keen on part of their security (i.e. the house) being sublet to another party for a long period of time.

Catherine_Johnson_2

AllenMansurian wrote: »

House prices are likely to follow trends in the United States, where solar panels are more widely used. Research by the US National Renewable Energy Lab has shown that houses powered by solar energy are likely to sell for 17% more than those powered by non-renewable fuel, and are also likely to sell 20% more quickly when put on the market.

I'd certainly be sceptical of 'research' carried out by an organisation who have a vested interest in the results. And why are house prices in the UK likely to follow those in the US?

anselld

hazyjo wrote: »

Gawd, I can't stand the things so it would devalue it for me! Cheaper bills though... dunno how these things even work.

If anything it is that sort of emotional response that tends to devalue them as many people just cant get beyond the appearance and therefore aren't interested in the facts.

hazyjo wrote: »

Am sure it takes donkey's years to recoup the money spent on what you save on bills.

Correct - that is why Feed in Tariffs were created - it is the generation which is (was) of real value not the bill savings.

DRP

Solar panels on the roof would devalue a property for me.

We are at the early-adopter stage - who knows if the panels themselves will last more than a few years or will affect the structural integrity of the roof.

Maybe in 10 or 20 years, i would be i nterested in buying a house that had been designed from the outset to carry roof solar panels.

m0bov

It would put me off, more legal questions, contracts and maintaining them...I'd ask for them to be removed if possible. Keep it as simple as possible.