“Almost (98 per cent) younger homeowners – those aged 18-34 – said they’d make green changes to their property if they had the option to.”
This stark result from Coventry’s research shows there is a growing trend and interest in sustainability, especially for future generations of homeowners who are drawn to green solutions that enhance energy efficiency and reduce environmental impact. Green mortgages have become available in response to this need, and while they may still be novel, there is certainly scope for them to become a mainstream option.
One of the key ways green mortgages are set to become more accessible in the UK is through existing home upgrades such as solar panels. Our team investigates the benefits of these mortgages, the types of surveys you can carry out to check viability, and the potential benefits of going green.
Understanding Green Mortgages in the UK
First and foremost, as a survey and valuations provider, Watsons Property doesn’t offer green mortgages. However, our team has a firm grasp of the market and expert survey experience to bring to the fore in understanding the value of these products.
Green mortgages incentivise buyers to invest in energy-efficient homes or upgrades. Benefits often include lower interest rates, cashback offers, and more favourable borrowing terms in return for confirmed EPC ratings of A or B.
These mortgages can also be applied to new properties or existing properties retrofitted to meet higher EPC ratings. There are ways to improve your energy use, but one that has recently garnered interest for providing the boost needed to qualify for A or B ratings is domestic solar panels.
Domestic Solar Panels: Costs and Savings
Domestic solar power is in vogue with the government providing several schemes to promote more domestic energy creation and reduce reliance on existing infrastructure. This change benefits homeowners, by reducing bills and increasing property values, but also helps the country as a whole move closer to Net Zero targets.
Solar panels are a popular choice for reducing energy costs and carbon footprints. They not only contribute to a home’s energy efficiency but can also increase property values.
Cost of Installation
The average cost for installing domestic solar panels in the UK ranges but averages around £7,000, depending on the system size and specifications. Despite the initial outlay, the long-term savings on energy bills and potential earnings from excess energy sold back to the grid can make solar panels a financially viable option.
Homeowners can expect to save hundreds and even thousands of pounds on their electricity bills by installing solar panels. With the average payback period ranging from 10 to 20 years, the financial benefits continue long after the initial investment has been recouped.
This insight coupled with government initiatives like the UK government scrapping VAT on domestic BESS installations, as well as the ECO4 grant and other funding options makes solar panels an investment that is within reach of more homeowners, and potentially a development where we see more homes enter the market with solar panels. This along with green mortgages and the younger generation’s drive for more eco-friendly options means that getting ahead with solar panels may be in your best interest.
For more information on solar panel installation, The Independent’s piece provides a comprehensive guide to solar panels in 2024 including the grants available, potential savings, and a calculator to estimate the costs of installing.
Location, Location, Location
As with most things in the UK, the weather plays an important role in any decision. This applies to solar panels in particular that are only productive as long as there is enough sunlight.
MakeMyHouseGreen conducted a study to see where the most savings can be made. For this test, they used an ‘average sized house with 12 south facing panels and a 3.55kWh battery.’
Their results were interesting as they show a difference of £300 between the top and bottom performers. The study identified the bands as:
- Band 1: £1,254 – £1,201 annual savings
- Band 2: £1,200 – £1,174 annual savings
- Band 3: £1,172 – £1,128 annual savings
- Band 4: £1,125 – £949 annual savings
While this may dissuade some, it shows that on average, most homes can make significant savings. In terms of regions the the most sunshine hours can be found on the south coast with Brighton (£1,254) taking the top spot for yearly savings. Dorchester (£1,252) and Portsmouth (£1,246) came in second and third respectively with the bands decreasing as you move further north.
The line doesn’t move evenly, however, as we do find that the east side of the isles usually sees more sunshine which brings counties like Sussex, Essex, and Cambridgeshire into the top band. Norfolk, London, and other southern counties find themselves in band 2, with the Midlands and up in band 3. Finally, we see most of Scotland and parts of the North West in band 4. However, even in these regions, you can still save at least £949 annually according to this study.
As with most home decisions, it’s important to get an expert’s opinion as it can add to the value of your home and ensure that all investments are sound. This is where we can help with surveys tailored to your solar panel needs.
How Watsons Property Supports Your Green Initiatives
We can see that the infrastructure is there, and the benefits (after investment) are clear to see; but does that mean you should jump straight to calling out an installer?
The simple answer is no.
First and foremost, you will need to establish the suitability of your property for solar panel installation. That’s where we can help.
Our expert surveyors play a pivotal role in evaluating a property’s suitability for solar panels and other green improvements. By assessing factors such as roof orientation, shading, and local climate impacts, we provide bespoke advice that ensures you invest wisely.
This analysis varies but will usually include:
- Feasibility Studies: Detailed assessments to identify optimal solutions for your property.
- Cost-Benefit Analysis: Insights into long-term savings versus initial costs for solar installations.
- Regulatory Compliance: Guidance on adhering to local building regulations and sustainability standards.
Some of the areas for investigation include how much space is available for panels and batteries for storage, whether you have a southern-facing roof for maximum exposure, and whether or not older builds need/can carry out additional energy-saving measures to reach the A or B rating.
Work With Watsons Today
Going green has never been easier. With a range of initiatives, mortgage products, and tax breaks, there is no time like the present to reduce your energy bills, help the environment, and add value to your home. If you’re interested in a specialist survey, or any other valuation or survey work contact Watsons Property today. Let us help you make informed decisions about green mortgages, solar panels, and other eco-friendly home improvements.
If you want some friendly advice on how our experts can help you, please contact us on survey@watsons-property.co.uk or call 0333 220 1234
