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More and more landlords are taking the plunge each year and installing solar panels on their rental properties. There are many benefits to this, with one of the main ones being that it can improve your house’s EPC rating significantly. Let’s dive into what an EPC is, how solar panels can affect it, and why you should consider getting solar panels as a landlord if you haven’t got them already.
What is an EPC?
If you’ve ever bought a brand-new appliance, or a new fridge, then you may have seen a brightly coloured sticker with a rating on it. That’s an EPC, an Energy Performance Certificate, and houses have them too. They are a rating system (in this case for houses) that goes from A to G, with A being the most efficient, and G being the least. EPCs tell the homeowner how expensive it will be to heat the property, and what the carbon dioxide emissions are expected to be. The EPC also tells you what can be done to make the property more energy efficient, whether that is by using a renewable energy source, or by improving insulation, to name a few. Currently, all rental properties in the UK must have an EPC rating of E or above, however this is set to change in 2025, where landlords will have to make sure their properties are rated no less than band C, which is a huge jump.
How can getting solar panels affect your EPC rating?
It’s no secret that solar panels can do wonders for your energy bills, but less is said of them improving your home’s EPC rating. Solar solutions are incredibly efficient at improving your EPC, and in some cases can help it to improve by a whole band rating. In fact, in order to reach the highest EPC rating, your house must utilise some form of renewable energy source. Some of the ways that you can improve your EPC rating are:
- Installing solar PV panels
- Solar water heating
- Room-in-roof insulation
- Draught proofing
- Low energy lighting
Of course, having solar panels installed is likely to be a bigger upfront cost than most of the other suggested improvements on the EPC, but they are also likely to have a far larger impact. The EPC report states that installing solar PV panels comes with an upfront cost of between £5,000-£8,000 but could help you save almost £300 a year, and help your property reach an EPC rating of B, which surpasses the minimum requirement that has been set for 2025. There would have to be other improvements made to the property, but it goes to show how much of a difference solar panels can really make.
Why should landlords consider installing solar panels on their rental properties?
There is a plethora of reasons why as a landlord, you should at least consider getting solar panels for your property.
The main point is the EPC rating, especially as the government is always releasing new legislation that landlords have to abide by when renting out their properties. Not only does having a good EPC rating look good for prospective tenants, but it also benefits you as a landlord. Your house will be far more efficient to run, and therefore cheaper, and you can stay one step ahead by always ensuring that the EPC is high so any changes to legislation in future doesn’t come as a shock. There is also the obvious reason why solar power and EPC ratings go hand in hand, and that’s all to do with solar
being a renewable energy source. Solar energy for your home is clean, emissions free, and incredibly reliable, and this means when it comes down to rating your house for efficiency and impact, it scores highly, as solar panels are incredibly efficient and they do not impact on the environment.
Another reason why you should consider getting solar panels, and one that goes hand in hand with the EPC rating is because they provide a financial incentive. It seems there is no minimum rating that you would have to hit in order to qualify for the SEG (Smart Export Guarantee) tariff that you can benefit from if you have solar panels. (This does not take into account the minimum rating that you are required by law to have as a landlord). But this means that assuming you are eligible, you can make money through the SEG scheme, while saving money due to their high efficiency rating, all thanks to the solar panels.
Finally, it’s not just good for you, it is a huge benefit overall for your tenants! Having solar panels on your rental property means that energy bills will be cheaper for your tenants, and as a result, they may stay longer. The majority of rental properties do not have solar panels; therefore, it would be hard to find another property that came along with a reduction in bills. Furthermore, as a landlord it means that you can responsibly sell the energy to your tenant, making a profit, so it is a win-win all around.
Final Thoughts
So where does this leave us? It is clear that considering installing solar panels if you haven’t already got them is a great step to take in order to boost your EPC rating, especially for landlords. This is because you will make your rental property far more energy effective, and therefore cheaper. Not only this, but it means that you can stay one step ahead of government legislation, and make sure that your property abides by the strict housing regulations for renting. As a landlord, it is also a good idea to get solar panels regardless of trying to achieve minimum energy efficiency. Your tenants will thank you for their reduced energy bills, and you can earn some extra cash on top, either via the SEG tariff, or by selling the energy back to your tenants at a cheaper cost than an energy supplier would.