Solar PV Panels & EPC Ratings: Is It Worth It for Landlords?

How Solar PV Affects Your EPC

Solar PV panels generate electricity from sunlight, reducing the property's net energy consumption. The EPC calculation credits this as a reduction in CO2 emissions and energy costs, typically adding 5–10 SAP points depending on the system size and roof orientation.

For a well-positioned 3–4kW system (8–10 panels), the SAP gain is significant and can be the difference between Band D and Band C for many properties.

How Much Does It Cost?

Prices have fallen significantly over the past five years and continue to drop. The cost includes panels, inverter, mounting hardware, scaffolding, and MCS-certified installation.

Battery storage improves the financial return (more self-consumption of generated electricity) but does not affect the EPC rating. Skip it if your primary goal is EPC improvement.

Is the Roof Suitable?

Key factors for solar PV performance:

• Orientation: South-facing is ideal. East or west-facing produces 15–25% less. North-facing is not viable.
• Shading: Trees, chimneys, or neighbouring buildings casting shadows significantly reduce output.
• Roof condition: The roof should be in good condition with at least 20 years of remaining life (panels last 25–30 years).
• Roof space: A 3kW system needs approximately 15–20m² of unobstructed roof area.

Financial Return for Landlords

Solar PV generates income and savings in two ways:

Smart Export Guarantee (SEG): Energy companies pay for electricity you export to the grid. Current rates are 3–15p per kWh depending on the tariff.

Reduced electricity bills: If the tenant uses electricity generated by the panels (daytime usage), they save on their energy bill. As the landlord, you can agree terms for this in the tenancy agreement.

Typical payback period for a landlord is 8–12 years, after which the panels generate pure return for 15+ years. However, this calculation is complicated by the fact that the tenant benefits from reduced bills, not the landlord — unless you adjust the rent or install a generation meter.

Grant Eligibility

Solar PV is not covered by most current government schemes for landlords:

• Boiler Upgrade Scheme: Heat pumps only, not solar PV
• GBIS / ECO4: Primarily insulation and heating measures
• 0% VAT: Solar PV installations are currently zero-rated for VAT, saving you 20% compared to the standard rate. This applies until March 2027.

The zero VAT rate is effectively a 20% discount and the best financial incentive currently available.

MEES Cost Cap Considerations

At £5,000–£8,000, solar PV consumes a large portion of the £10,000 MEES cost cap. If your property needs multiple improvements, prioritise cheaper high-impact measures first (loft insulation, cavity walls, heating controls) and only add solar PV if you still need SAP points and have cost cap headroom.

However, if your property is already reasonably efficient (Band D, SAP 60+) and just needs a boost to reach C, solar PV can be a single-measure solution.

MCS Certification Required

Solar PV must be installed by an MCS-certified installer to qualify for the Smart Export Guarantee and to be properly credited on the EPC. Always verify MCS certification before instructing an installer.

Check your property on EPCFix to see how solar PV compares to other improvements for your specific property and whether cheaper options could get you to Band C first.