The costs and benefits of adding renewable energy to buildings

In this contributed article, Alanna Loder-Symonds, sustainability director at consultancy EQONIC Sustainability, part of battery technology firm EQONIC, weighs the case for installing renewable technologies on domestic and business properties, writing that the long-term benefits are now too substantial to ignore.

Renewable energy in buildings was once seen as a green luxury, commendable but far from essential. Now it is reshaping the fundamentals of property value. Solar PV, battery storage and other on-site renewable technologies have moved from being optional add-ons to becoming central components of a building’s financial performance, resilience and long-term viability. 

Yet for all their advantages, these systems often require significant upfront investment, and many commercial landlords, developers and homeowners hesitate at the initial capital outlay. As energy prices fluctuate and the UK tightens its net-zero trajectory, getting clear on the actual costs and the expanding list of benefits of renewables is central to asset strategy.

The upfront cost of renewable energy remains the most visible barrier. A domestic UK solar system on a three bed home ranges from £5,000 to £9,000, with battery storage typically costing £3,000-£7,000. Commercial installations, multi-residential blocks and industrial rooftops naturally cost much more, sometimes into six-figure territory. 

Related:UK’s first zero-bills microgrid powers largest Octopus Energy community

These expenses usually arrive before any savings do, and in an economic climate where capital budgets are tight, hesitation is understandable. However, companies such as EQONIC, BOXT or Octopus Energy allow businesses and building owners to spread the cost of solar and battery installations into monthly or quarterly instalments, turning what was once a capital-intensive decision into a manageable operating expense.

Once solar panels and battery are installed the owner can expect to save around £600-£1,000 a year in energy costs on a typical three bed home by installing solar panels and a battery. The estimated payback for the ROI is around 5-12 years for a battery solar system.  This is particularly significant in the UK context, where homeowners move on average every 17 years.

The property value premium: what the recent research reveals

What is also clear, is that renewable energy delivers benefits that extend far beyond reduced electricity bills. Multiple property studies have shown that renewable installations can significantly increase building value. 

Research from Swansea University shows that having solar PV and other low-carbon technologies can raise the price of a home by 6-7%. This uplift is reinforced by broader market signals: 1.6 million UK homes already have solar installed, representing just over 5.5% of all homes, and 40% of new builds integrate renewables from the outset in 2024. Even among older demographics, interest in energy-efficient homes is rising, reflected in a 34% jump in online searches for eco-friendly properties over the past year.

Related:How the UK & Ireland solar PV and residential BESS market compares with Australia

Barrows and Forrester’s analysis shows that solar panels, which typically cost £5,875 on average, add £11,500 of value to a property, nearly double the installation cost. Meanwhile, Rightmove’s ‘2023 Greener Homes Report’ found that increasing a property’s EPC rating from F to C could increase home value by as much as 15%. On the typical property price of £285,000, as registered by the Office for National Statistics, that represents a potential £42,750 of added value.

Demand is growing from both ends of the market. Younger buyers are driving this shift. Research from Legal & Generalshowed that buyers are willing to pay a 10.5% premium for low-carbon properties, with Gen Z future buyers willing to pay up to 20% more. 

More recent analysis found that consumers are willing to pay 3.4% more for high energy-efficient homes (A or B-rated) compared with band D properties, while homes rated F or G typically sell for 7.4% less than D-rated properties. 

Related:Gryd, Zero In Developments launch homes with fully-funded solar and batteries

Wider economic benefits beyond property value

This change in buyer behaviour is creating ripple effects for landlords and developers. Solar-equipped homes and commercial buildings are not only selling faster, but they are also renting more easily and commanding higher yields. In a tightening regulatory environment, energy efficiency is also becoming a compliance issue. As EPC standards rise and net-zero expectations extend deeper into the built environment, assets without a credible renewable energy strategy risk losing value or becoming stranded assets. Owners and investors increasingly recognise that adding renewable capacity is not only about environmental credibility but about protecting long-term asset performance.

Energy independence is another growing driver behind adoption. As the UK experienced repeated surges in wholesale gas and electricity prices, especially from 2021 onwards, the vulnerability of buildings reliant on grid energy became clear. Solar PV combined with battery storage allows buildings to generate and store their own power, reducing exposure to volatile tariffs and peak-time pricing. This shift reshapes operational economics. Importantly, these benefits are increasing in relevance as the UK transitions to electric vehicles and electric heating. Homes and buildings will need more power, and self-generation will help meet that demand at far lower cost.

Alongside the economic arguments, the technology itself is progressing quickly. UK buildings are evolving from passive energy users into active energy systems. Solar panels, advanced inverters, behind-the-meter batteries and intelligent control systems now work together to optimise energy use based on demand, pricing signals and weather forecasting. Commercial buildings are beginning to function as micro-energy hubs, participating in flexibility markets or reducing peak grid demand. Housing developments increasingly include communal renewable systems, shared battery banks and integrated EV charging infrastructure. These innovations are not only reducing emissions but helping buildings move towards varying degrees of energy autonomy.

The overall direction of travel is unmistakable. Renewable energy improves building value, strengthens rental performance, reduces operational costs, increases resilience and supports compliance with the UK’s net-zero trajectory. The initial investment doesn’t have to be significant; the long-term benefits — financial, environmental and strategic — are now too substantial to ignore. For homeowners, the case is increasingly compelling; for developers and landlords, it is becoming a necessity; and for the property market as a whole, renewable energy integration is set to become a defining feature of asset quality in the decade ahead.

As the UK moves towards electrified heating, widespread EV adoption and a decarbonised energy system, the buildings that will hold value are the ones that can generate and manage their own power. Renewable energy is no longer an optional upgrade — it is a core component of future-proof property.