"Solar panels made my house unsellable"... and other misleading-scandals

There are many rumours and half-truths out there, spoiling the good name of solar energy:

• "Solar only works if your house faces south"
• "There’s no point - it’s always raining"
• "You’ll never make your money back"
• "Don’t bother unless you drive an electric car"
• "You need planning permission"
• "The equipment’s too bulky for a regular house"

And more! All of it false, but stuck forever on the rumour mill.

But one myth is starting to do more damage than any other:

• "It’s impossible to sell your house once you’ve got solar panels!"

Don’t believe that for a second!

Any Estate Agent will tell you, solar should INCREASE the value of your home if you go about it correctly. Typically, you’ll see a rise of 2%-4%, which could offset the entire cost of your installation before you see the first penny in savings.

And yet, horror stories abound.

Just this month, the Daily Mail ran a story with this sensational headline:

Man says solar panels have made £280k family home 'unsellable' for two years despite asking price plummeting by £65k

You can read the article here.

Were they lying? Absolutely not – the article is factual, as far as we’re aware.

BUT… whether deliberately or otherwise, it gives a false impression. Leading with a dramatic statement that invites readers to join the wrong dots and mistakenly conclude that solar is a bum investment.

Let’s dissect this and get to the hidden truth…

There are four ways to get solar panels for a domestic property:

1: THE OWNER PAYS

The homeowner buys their own system (perhaps through a finance deal or partial grant). They own it outright, so when they’re ready to sell the property, the panels increase its value.

2: THE GOVERNMENT PAYS

The homeowner (or a private tenant) is entitled to free solar panels through a government scheme like Nest or ECO4 – qualifying because they have a low energy rating or receive certain benefits. Their system is basic, but they can pay for extras like a storage battery if they choose. Then the system belongs to them – so again, it increases the property value.

3: THE SOCIAL LANDLORD PAYS

Many councils and housing associations are adding solar to their housing stocks. If the property is then purchased under Right To Buy, the cost of the panels may be factored into the sale price – and when the buyer comes to sell, the panels will increase the property’s value.

4: THE INSTALLER PAYS

This is the option in the Daily Mail’s story, and we strongly advise against it.

There are some solar firms who will install a system on your roof free of charge, so they can generate their own energy – which they’ll sell back to you at a fixed rate. They’ll also sell the excess on, either to their own customers or the National Grid, so it’s a great deal for them… but maybe not for you.

You’ll be tied to a leasing contract, typically 25 years, which will block you from changing energy providers – so down the line you could find your tariff is no longer competitive.

And worse, the contract will tie you up in knots if you sell the property before the leasing term expires. The obligation typically transfers with the deeds, making the property less attractive to buyers – it could even scupper their chance of securing a mortgage.

This leasing option is the only way a solar energy system can lower the value of a property. (That is, of course, assuming that the system is fitted by a trained and accredited installer!)

The Daily Mail’s article does explain that the horror case in question was part of a leasing agreement, and we stand with them in stressing the risks of this arrangement.

However, we take issue with the way the story has been reported, as it heavily implies that solar panels are a liability, without explaining the other routes to solar. They do not make it clear that a privately-owned, well-installed solar energy system is an asset.

IN SUMMARY:

Please don’t jump to conclusions when you read a horror story, as you won’t be getting the full picture. And please don’t enter into a leasing agreement, even with a legitimate solar provider.

Talk to us, and we’ll show you how to cut your bills by 70% and increase the value of your home, through a free no-obligation energy audit and survey. Plus, we’ll walk you through the latest finance options, including local authority grants and the new Green Homes Wales scheme that’s offering 0% finance.

TALK TO US ABOUT SOLAR POWER