“I can’t buy solar, I won’t be in this building long enough to see the returns.”
This is one of the most common objections people raise when talking about solar, whether for a home or a commercial building. It sounds sensible on the surface, but it is based on a misunderstanding of what a solar system actually is and what you are buying when you invest in one.
So let's ask a better question.
Would you pay more for a building with permanently lower energy bills?
The real misunderstanding about solar
Most people think about solar purely in terms of payback. How many years until the system has paid for itself? If they plan to move before then, they assume the investment is wasted.
That logic only works if solar is treated like a consumable expense. It is not.
Solar is an asset that produces value every single year it exists. The mistake is thinking the value only belongs to the person who originally paid for it.
Assets are priced on future profit
When someone buys shares in a business, they are not buying past performance. They are buying future cash flows.
Take a large, stable company. Its share price is based on a multiple of earnings. If a business trades at 22 times earnings, nobody expects to personally sit there for 22 years collecting every pound of profit. What they are buying is the right to future profits, whether they hold the shares for a day or a decade.
If the business improves, those future profits look better, and the value goes up.
This way of thinking is already standard in investing and property.
Property already works this way
Rental buildings are valued in exactly the same manner. A typical property might be valued at 14 to 16 times its annual rental income.
Landlords do not refuse to buy property because they are unsure whether they will own it for 14 years. They understand that the future income stream has value, and someone else will pay for that future income if the building is sold.
Solar fits neatly into this same framework.
Solar is an energy generating business on your roof
When you install solar, you are not just reducing bills. You are installing a small power station that produces electricity for 25 years or more.
That electricity has a measurable value. Every unit generated is a unit you do not have to buy from the grid.
In simple terms, investing in solar is buying 25 years of electricity upfront.
If a typical domestic system costs around £8,000 to install, the electricity it produces over its lifetime is often worth well over £30,000. That’s based on straightforward assumptions: electricity prices continue to rise broadly in line with long term trends, and the system’s output falls slightly over time.
On day one, the system is already worth far more than it cost.
But something is only worth what someone will pay for it
This is absolutely true.
And it is exactly why the value of solar has to be explained properly at the point of sale.
When you sell a business, you show the buyer future profits. When you sell a property with solar, you do the same thing.
You show the buyer what the system will generate, how much electricity it will offset, and what that means for their future energy costs.
A real example from Spirit Energy
When Spirit Energy was founded in 2010, one of the first projects was installing solar on a family home in Reading. Two years later, the house was sold.
During the sale process, the future benefit of the solar system was clearly laid out. The buyer could see the forecast value of the electricity they would not need to buy from the grid. They understood they were buying long term energy security alongside the house.
They were happy to pay more for the property as a result.
The logic does not change for commercial buildings. In fact, it becomes even clearer.
If a commercial building has predictable energy demand, a solar system produces predictable savings. Those savings improve operating margins and reduce exposure to energy price volatility. That has real value to the next owner or occupier.
How do you actually value a solar system?
This is where Net Present Value comes in.
The process is straightforward.
First, you calculate the annual benefit of the system. That is the value of the electricity it generates and uses on site. Then you project that forward year by year, allowing for agreed assumptions such as electricity price inflation and minor system degradation.
Next, you discount those future cash flows back into today’s money using a standard inflation rate, typically around 2 to 3 percent.
Add those discounted values together, and you have the present day value of the solar system.
This is not creative accounting. It is the same method used to value businesses, infrastructure projects, and commercial property investments.
Why estate agents sometimes miss this
Solar is still treated by some agents as a feature rather than an income generating asset. That usually comes down to lack of familiarity, not bad intent.
Selling solar is not about saying “the house has panels”. It is about showing the buyer that a portion of their future electricity costs has already been paid for.
That is why keeping system documentation, generation data, and annual performance records matters. Without them, the value is harder to demonstrate.
Why “I’ll just buy the house next door and add solar” rarely applies
In theory, a buyer could choose a similar property without solar and install their own system.
In practice, identical properties for sale at the same time are rare outside new build developments. Most buyers are choosing between unique buildings. Location, layout, and suitability usually matter far more than whether solar is already installed.
If the building is right, buyers will pay more when the added value is clearly explained, especially when that value directly reduces long term running costs.
Solar adds value because it reduces risk
This is the final piece many people overlook.
Solar does not just save money. It reduces exposure to future electricity price increases. That makes it a defensive investment, similar to fixing energy costs decades in advance.
For businesses and homeowners alike, that stability has value. And that value transfers to the next owner.
If you’re looking at solar or battery for your home or business, please do get in touch with Spirit Energy and we’ll provide a free, bespoke quotation that maximises the return you can get from your roof. And we’ll also provide a net present value certificate to show what the system is worth when you come to sell the building.
FAQ
Does solar actually add value to a property?
Yes. Solar adds value by reducing future electricity costs for the next owner or occupier. The value comes from the electricity the system will generate over its remaining lifespan, not from the panels themselves.
Does this apply to commercial buildings as well as homes?
Yes, and often more strongly. Commercial buildings usually have higher and more predictable energy usage, which makes the savings from solar clearer and easier to value.
How is the value of a solar system calculated?
The value is calculated by forecasting the future electricity savings and discounting them into today’s money using a Net Present Value calculation. This is the same financial method used to value businesses and income-producing assets.
What happens to the solar system when I sell the building?
The solar system stays with the building and transfers to the new owner. The buyer benefits immediately from lower energy bills without needing to install solar themselves.
Will buyers actually pay more for a building with solar?
Often, yes, provided the value is clearly explained. Buyers are paying for predictable reductions in future energy costs and reduced exposure to rising electricity prices.
