Does it Make Financial Sense?
Devon has more holiday let properties than almost anywhere else in the UK. Many of them run on electricity, have south-facing roofs that see strong summer sun, and face energy bills that peak precisely when solar panels generate most. That alignment is not a coincidence, it is why solar makes a genuinely strong case for holiday let owners in a way it does not always do for standard residential properties.
This post covers the financial case honestly, the practical considerations that are specific to holiday lets, and what to think about before booking a survey.
Why the financial case is different for holiday lets
The standard residential solar argument rests on self-consumption, using what you generate to reduce what you buy from the grid. For a property that is occupied year-round, consumption tends to be spread across the day and evening in predictable patterns.
Holiday lets work differently. A property occupied in summer generates peak solar output and also has guests using electricity during the day, heating water, running appliances, charging devices. A well-sized system on a south-facing cottage in Devon during July and August will generate more electricity than a typical weekend guest can use, with surplus exported to the grid.
In winter, many Devon holiday lets have low or no occupancy. Generation is also lower. But the property may still have baseline electricity use, frost protection, a hot tub, security systems, refrigeration, and those loads can be served by the panels on brighter winter days.
The net effect is that holiday let owners often achieve high self-consumption rates during peak season and benefit from export income during the shoulder and off-peak seasons. Combined with Devon’s 13% irradiance advantage over the UK average, the financial case is typically stronger than for an equivalent residential installation.
Taxation and solar for holiday lets, what you need to know
This is where holiday lets diverge most clearly from standard residential properties, and where getting advice from your accountant before proceeding is important.
If your property qualifies as a Furnished Holiday Let for HMRC purposes, which requires meeting specific occupancy thresholds, you can claim capital allowances on the cost of the solar installation. This means deducting the cost from taxable profits in the year of purchase through the Annual Investment Allowance, up to the permanent £1 million annual limit.
For a higher-rate taxpayer, that means reducing the effective cost of the installation by 40%. For a basic rate taxpayer, by 20%. The relief applies to the panels, inverter, mounting system, and associated electrical installation.
If the property does not qualify as a Furnished Holiday Let, the tax treatment is different and less favourable. This is a question for your accountant, not your solar installer. The key point is that FHL status, if you have it, makes solar significantly more financially attractive and the calculation should factor in the tax relief from the outset.
The SEG export income is taxable in most cases, though the amounts involved are generally modest. Again, your accountant is the right person to advise on this.
Practical considerations specific to holiday lets
Monitoring is more important than for residential properties. Guests will not monitor your system for you. A system with remote monitoring built in lets you check that it is generating as expected between lets, identify any faults quickly, and have data ready if a warranty claim is ever needed. Ask your installer about monitoring options at the survey stage.
Battery storage makes particular sense for some let types. If your let attracts guests who want energy independence, rural cottages, off-grid-feel properties, eco-minded visitors, a battery adds a genuine selling point in addition to its financial value. “Solar-powered with battery storage” is increasingly appearing in holiday let listings as a positive feature, particularly in Devon where environmental values are strong among visitors.
Planning permissions for listed buildings and conservation areas apply equally to holiday lets. If your property is listed or in a conservation area, common in Devon’s historic coastal villages and Dartmoor-fringe settlements, the same planning rules apply as for residential properties. We check the planning position as part of every survey.
Insurance. Notify your holiday let insurer before installation. Most policies accommodate solar panels without significant impact on premiums, but you should confirm this and ensure the system is included in the sum insured for buildings cover.
What system size suits a holiday let?
The right system size depends on the property’s consumption profile, not just its size. A four-bedroom let with a hot tub, underfloor heating, and an EV charging point has a completely different load profile to a two-bedroom coastal cottage with modest appliance use.
If you have electricity consumption data from the property’s smart meter or bills over a full year, bring that to the survey. It will allow the system to be sized to real consumption patterns rather than estimated averages. If the property is new to your portfolio and you do not have a year’s data, the survey can work from typical consumption benchmarks for the property type and occupancy level.
Solar is worth serious consideration for Devon holiday let owners, particularly those with FHL status, a south or south-west facing roof, and at least moderate year-round occupancy. The Devon irradiance advantage, the alignment between summer occupancy and peak generation, and the capital allowances available to qualifying FHL businesses all make the case stronger here than for many other property types.
The numbers vary enough between properties that a survey is the only way to get a reliable answer. We will tell you honestly what we find.
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