Despite highest ever number of solar panel installations in 2023 since 2011, sites for house movers miss out vital options for the expected increase in house movers in 2024

Despite a record year for green energy installations in 2023 and the expected housing market uptick due to reduced mortgage rates, prospective buyers need more support to identify eco-friendly options in decision-making.

New analysis unveiled today reveals that not one of the UK’s top 10 estate agent sites or leading property aggregator sites, such as Rightmove and Zoopla, include options to filter by energy efficiency when searching for a new home, according to new analysis by iChoosr, an organisation accelerating the transition to renewable energy.

Given the sharp rise in energy bills over the past two years, many home-seekers have increased interest in their energy consumption and are looking for ways to be more energy efficient. iChoosr’s recommendations for these additions to property sites come as the latest figures show 190,000 UK homes installed solar panels last year – the highest number of installations since 2011¹ and the company is keen to see more support for prospective buyers going forward.

Recent data also reveals that 69% of British adults say they would buy a property with solar panels, rising to 74% of Gen Z and Millennials². In fact, three in five UK homebuyers would be willing to pay more for a property with renewable energy sources³.

George Frost, UK Country Manager at iChoosr, says: “The spike in solar panel adoption in 2023 was driven, in part, by the cost of living crisis and rising energy bills. But there has also been a significant mindset shift on installing renewable energy sources by UK homeowners and home-seekers. There is now a near-on consensus across the UK that we are knee-deep in a climate emergency, demonstrating the urgent need for the transition towards renewable energy.”

“Homeowners are more likely than ever to invest in effective and sustainable solutions to improve their home now. Schemes like Solar Together make solar panels affordable and accessible for anyone to reap their environmental and financial benefits. It feels as though estate agents and property search sites are missing a trick by not reflecting homebuyers’ enthusiasm to adopt modern green energy sources. It would be great to see estate agents take heed and add green energy sources like solar panels and heat pumps as a criterion on their websites to help homebuyers navigate the different energy options available.”

Not only do solar panels help reduce residents’ energy usage, but investing in solar panels can increase a property’s value by up to £2,722, future-proofing it for the market and making it more appealing to buyers who are seeking a sustainable home⁴. Plus, adding a supporting solar battery allows residents to store the electricity produced, maximising utilisation and reducing carbon footprints by up to 15%. On average, those with a three-bedroom property with a solar panel system and a 5 kWh battery will save £669 per year on energy bills⁵.

iChoosr partners with local authorities to deliver the highly successful Solar Together programme across the UK. Solar Together has delivered more than 29,300 solar panel installations, which are expected to remove 600,000 tonnes of carbon emissions over the next 25 years.

Homebuyers across the EU could be offered better borrowing rates on mortgages in return for purchasing more energy efficient homes or committing to implement energy saving work within properties.

This is being made possible under a ground-breaking project being pioneered by a unique partnership of banks, property valuers, energy efficiency businesses and utility providers.

The European Energy Efficiency Mortgage initiative, launched today by a consortium led by the European Mortgage Federation – European Covered Bond Council (EMF-ECBC), aims to create a standardised “energy efficient mortgage” based on preferential interest rates for energy efficient homes and/or additional funds for retrofitting homes at the time of purchase.

The project represents the first time a group of major banks and mortgage lenders, as well as businesses and organisations from the building and energy industries, have come together to address the concept of energy efficient mortgages.

The project partners are the Ca’Foscari University of Venice, RICS, European Regional Network of Green Building Councils, E.ON, and SAFE Goethe University Frankfurt.

Creating a private bank financing mechanism to encourage the energy efficient improvement of households is a key means of helping the EU to meet its energy saving target of 20% by 2020, and to deliver on the ambition of the historic climate change deal, known as the Paris Agreement, which was reached at COP21 last December.

It is also particularly timely given the growing global institutional and investor interest in climate finance and private sector investment required to fund low carbon initiatives, which will be the main focus of COP22, the next major climate change conference which takes place in Marrakech in November.

The European Energy Efficiency Mortgage initiative is significant in that it will explore the link between energy efficiency and borrower’s reduced probability of default and the increase in value of energy efficient properties. For banks and investors, this could lead to loans which represent a lower risk on the balance sheet and could therefore qualify for a better capital treatment.

It could also ensure that banks are able to recognise “energy efficient” assets in their risk profiling, which would begin to help the market to price-in the added value of energy efficient real estate.

The initiative is launched today at the World Green Building Council’s BUILD UPON Leaders’ Summit in Madrid, where 200 renovation leaders are gathering to discuss how to tackle energy efficiency in Europe’s existing buildings.

Luca Bertalot, EMF-ECBC secretary general, said: “We have the responsibility to design a sustainable environment for future generations by developing a pan-European mortgage financing mechanism, according to which energy efficiency investments are made more accessible and affordable for consumers and institutional investors, and the subsequent energy efficiency improvements reduce risk for banks, creating a win-win for all involved.”

James Drinkwater, Europe regional director at the World Green Building Council, said: “The Paris Agreement has set a course to keeping global warming to within 2 degrees, but we will need to develop innovative ways of financing energy efficiency in Europe’s homes if we are to stand any chance of meeting that goal.

“Mortgages which reward consumers and investors by recognising energy efficiency represent one such way, and will undoubtedly play a key role in helping to achieve our ambitious climate change targets.”

Emmanuel Normant, Vice-President for Sustainable Development at Saint-Gobain, which is on the project’s Energy Efficiency Committee and is a Partner of the European Regional Network of Green Building Councils, said: “As we need to speed up progress to meet our climate ambition, Saint-Gobain welcomes this timely initiative which has the potential to accelerate the uptake of renovation in Europe. Forging a common understanding of the value of energy efficiency between all players and private banks is an essential step to unlock investment in energy efficiency.”