As energy prices go up, many homeowners want to find ways to lower their bills. One popular choice is installing solar panels, which can cut energy costs and even boost your property’s value. However, the installation cost can vary based on factors like your home size, the type of panels, and if your roof needs extra work.
In this blog, we will explain the costs of installing solar panels and cover the different ways you may be able to finance the installation.
How much does it cost to install solar panels?
The cost of installing solar panels can vary. It may depend on factors like your home's size, the type of panels, roof repairs, and if you want a solar battery.
On average, installing solar panels costs between £4,000 and £7,000. However, if you have a larger property, need roof repairs, or want a high-end system or solar battery, the cost could be higher. In short, the final price depends on how complex the installation is.
How much do solar panels add to home value?
Solar panels can increase your home’s value, but how much depends on things like your property type and the system you choose.
Research from Admiral Money shows that solar panels could raise your home’s value by up to 20%. However, some buyers may avoid homes with solar panels due to concerns about maintenance costs.
With growing interest in energy-efficient homes, solar panels may become more popular, and in the future, many buyers may actively seek homes with them.
Can you get loans for solar panels?
Yes, you can get solar panel finance, and there are a few types of home improvement loans you can consider.
Unsecured loans
One option is an unsecured loan, or personal loan, which is good if you need to borrow smaller amounts, usually up to £20,000. The advantage is that your property isn’t used as security, making it less risky for you. However, it can be harder to get approved since it’s riskier for the lender, especially if your finances are complicated.
Further advance
Another option is a further advance, which is when you borrow more from your current mortgage provider. This can be faster because you already have a relationship with the lender, and it might be cheaper since the terms and interest rates are often better than other options.
Secured loans
If you need a larger loan for a more expensive solar panel system, secured finance might be an option. This loan is backed by your property, so if you don’t repay it, the lender could repossess your home. While this means it is riskier, it can give you access to larger amounts of money and longer repayment terms. It’s usually considered when other loan options are not available or they don’t offer the terms or loan size you need.
Summary
Installing solar panels can be a good way to lower energy bills and increase your home’s value. The cost of installation varies depending on factors like your property size, roof condition, and the type of system you choose.
The average cost is between £4,000 and £7,000. However, it may be higher if you need extra work or want a better system. You can finance solar panels in different ways including unsecured loans, borrowing more from your mortgage, or secured loans. Each option has its benefits and risks, so it’s important to think carefully about your options before choosing.
Loans are secured against property. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
