Do solar panels and heat pumps boost the value of a home?

Key summary:

- Research suggests an increased value of 16% for new-build homes with enough solar and battery storage to eliminate energy bills, according to data from the Department of Land Economy at the University of Cambridge

–Solar panels, heat pumps and smart tariffs can provide a big financial benefit: homes with these technologies have higher house price values on average and benefit from reduced energy bills. Plus, buyer interest in green tech is growing

- A combination of solar panels, battery and heat pump means a home is less reliant on drawing power from the grid, so energy bills are lower than gas-heated homes, on average

Disclaimer: Rightmove is engaged in paid advertising with Octopus Energy.

Managing high energy bills and reducing household carbon emissions are front of mind for many people. Homes account for around 20% of the UK’s carbon emissions, and our data shows that a typical 3-bed semi with an EPC rating of D (the UK average) pays over 400% more in energy bills each year than a top-rated EPC A home.

Imagine a home that generates its own power, slashes your bills, and is worth even more thanks to a couple of savvy updates. Well, thanks to smart green technology – like heat pumps, solar panels, batteries, and smart energy tariffs – that’s already a reality for households who’ve made the switch to low-carbon living.

Rightmove research shows there has been almost 40% more mentions of solar panels in property descriptions of homes for sale in 2025, compared to the same period last year.

In February 2024, a Cleantech report found 43% of sellers would be looking to attach a premium to more energy-efficient homes. Plus, 37% said that homes with greater energy efficiency were holding their value in the current market, when compared to less energy-efficient homes (Cleantech Report).

Can green tech cut your energy bills?

Yes. Homes with solar panels, batteries and heat pumps, teamed with smart energy tariffs, are seeing chunky annual savings on average.

Rebecca Dibb-Simkin from Octopus Energy says: “Homes with a heat pump, smart tariff, and mid-sized solar array have 40% cheaper bills*, compared to like-for-like new-build homes with gas heating. And people can eliminate their energy bills entirely by having larger amounts of solar, battery storage and an appropriate smart tariff.”

Octopus Energy estimates that households could save up to £1,050 a year by combining solar panels and a battery with its Intelligent Octopus Flux smart tariff—compared to similar homes on a standard tariff without solar. This figure is based on a medium-sized UK home (as defined by the energy regulator, Ofgem) with 10 solar panels, and a 5 kWh battery.

When it comes to heat pumps, Octopus Energy estimates homeowners can save up to £496 by making the switch from a gas boiler to a heat pump. This is based on a home with ‘high’ energy usage (according to Ofgem’s average household usage stats) and no gas supply, running on the Cosy Octopus smart tariff, compared to a gas boiler on the Flexible Octopus tariff.

What about property value?

Research from the University of Cambridge suggests that new-build homes with enough solar and battery storage and a heat pump could be worth up to 16% more  for a home when built to ‘Zero Bills Home’ specification which includes heat pump, solar panels and batteries. Suggesting homebuyers are willing to pay a premium for the ability to generate and store their own power at home, and the prospect of lower energy bills.

For existing homes with solar panels, the value uplift is typically around 2–3%. While modest, this increase, combined with savings from generating power and potential earnings from exporting it, can help offset some or all of the system’s costs – making it a worthy investment. There’s also evidence to suggest that low running costs and built-in green tech is appealing to buyers who recognise the benefits of producing their own power at home.

Can green tech improve borrowing power?

Lower energy bills free up disposable income, meaning people could potentially afford to responsibly borrow more. Banks are increasingly looking at whether green tech homes could allow for responsible adjustments to mortgage affordability assessments.

Some mortgage providers also offer green mortgage products, which can be used to fund energy efficient upgrades, or to finance properties that have already achieved high EPC ratings.

Read more about green mortgages here.

What are some other benefits of a green tech home?

There’s a growing focus on the health benefits of switching to green technology at home.

In cities like London, more than 20% of nitrous oxide (NOx) emissions come from gas boilers and cookers — pollutants linked to asthma and other respiratory illnesses. Access to affordable, clean household energy is key to reducing air pollution and improving public health, according to the World Health Organization.

Replacing gas with electricity – whether by installing a heat pump or by reducing reliance on the grid through solar – can make a tangible difference to local air quality.

Are people who’ve already made the switch happy?

According to an Octopus Energy survey:

• 91% of people with a heat pump are satisfied with their new heating system
• That compares with just 74% satisfaction among households with gas boilers

What about the upfront cost?

Green upgrades like solar panels and heat pumps can require a significant upfront investment. But the long-term financial benefits may make those costs worthwhile, including:

• Energy bill savings of up to £18,500 over 25 years (Cleantech Report)
• Government support available, such as the Boiler Upgrade Scheme – a £7,500 grant to support the switch from a gas boiler to a heat pump, and the Great British Insulation Scheme, to support insulation upgrades
• A potential uplift in property value if you decide to sell

Take a closer look at installing a heat pump and solar panels with Octopus Energy.

*Sustainable Markets Initiative’s Cleantech Homes Report