Increasing GDV of New Builds

In the United Kingdom, Property Developers are Reducing Build Costs and Increase Selling Prices by adding Solar to their projects, how? So we're discussing Gross Development Value (or GDV) is the forecast revenue or sale that is anticipated from the completed development scheme.

Specifically, 'In-roof flush' mounting panels remove the need for tiles, avoid truss strengthening and can increase the value of each unit sold by 4% to 14%*

Considering that a typical new build buyer will commit to a 25-year mortgage, that equates to an additional £100 per year cost for the homebuyer and even with a 5% interest rate that is only £3,125 to the life of that mortgage or put another way £10.42p per month! for a basic supply and fit solar system.

The price of solar has dropped significantly at the time of writing of this article in March 2024 and can be integrated into a new build from as little as £2,500 from companies such as Fortis Electrical or purchased from the SHEDyt marketplace > Solar Panels package for Property Developers & Builders

Though the value that solar panels add to newly built properties can vary, depending on factors such as location, the size and efficiency of the solar installation, energy prices, local authority incentives and size of the installations; However, there is always an uplift of at least the price of an aftermarket retail installation. In addition, Property Developers can upsell the build and create margin from being onsite and using contractors such as Fortis Electrical  that partner in this space.

In summary, below are 10 ways PV Solar Panels can add value to new homes:

1. Increased Property Value: Research** conducted by the Department of Energy and Climate Change (DECC) in the UK suggests that installing solar panels can increase property values. According to their findings, properties with solar panels typically sell for a premium compared to similar properties without solar installations.
2. Energy Savings and Reduced Bills: Solar panels offer the benefit of reduced energy bills for homeowners. This can be an attractive feature for potential buyers and may contribute to the overall value of the property; Adding a battery backup and storage can amplify these savings.
3. Feed-in Tariff (FIT) Scheme: While the UK government's Feed-in Tariff (FIT) scheme closed to new applicants in 2019***, existing FIT payments may still be transferred to new homeowners if the property is sold with solar panels installed. This can provide an additional financial incentive for buyers and potentially increase the value of the property.
4. Better Energy Performance Certificate (EPC) Ratings: Installing solar panels can improve the energy efficiency of a property, which may lead to a higher Energy Performance Certificate (EPC) rating. A higher EPC rating can contribute positively to the property's value and marketability.
5. Environmental Considerations: With increasing awareness of environmental issues and a growing emphasis on sustainability, properties with renewable energy sources like solar panels may appeal to environmentally-conscious buyers, which also increases their 'perceived' value.
6. Long-Term Investment: Solar panels are considered a long-term investment by buyers and can suggest an extra price worth paying. Buyers may view a newly built property with solar panels as a more desirable investment due to the potential for future energy savings and increased property value.
7. Make properties easier to sell: Having solar panels installed on a newly built property can differentiate it from other properties on the market. It can attract attention from buyers seeking modern, sustainable homes, thereby increasing the property's marketability.
8. Material Cost Savings: Flush roof panels can serve a dual purpose as both roofing material and solar panels. This eliminates the need for separate roofing materials, reducing material costs for the build.
9. Labour Cost Reduction: Installation of integrated flush roof panels may require less labour compared to installing traditional roofing materials and solar panels separately. This can result in savings on human resources and contractor costs during the construction phase.
10. Streamlined Design and Installation: Integrating flush roof panels into the initial design of the building can streamline the construction process. With careful planning and coordination, builders can avoid additional complexities associated with retrofitting solar panels onto an existing roof, potentially saving time and money.

While there isn't a fixed percentage or value that solar panels add to new build properties in the UK, they can offer financial savings, environmental benefits, and increased market appeal, all of which can contribute positively to the new build's overall value. It's advisable to consult with local real estate experts or appraisers to get a more accurate assessment of the value added by solar panels in a specific location.

Get in touch with the SHEDyt team or Fortis Electrical to find out more about increasing the value of your home building project with renewables, whether it is a new build, refurbishment or a renovation project.

#proptech #propertymanagement #propertydeveloper #newbuild #renewables #sustainability

*yopa.co.uk/homeowners-hub/how-much-do-solar-panels-add-to-the-value-of-your-house
**https://www.gov.uk/government/news/energy-saving-measures-boost-house-prices

***energysavingtrust.org.uk/grants-and-loans/feed-in-tariff

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