Does Solar Increase Property Value?
- Solar power systems are so popular in Australia that they are considered a selling point for a home. Buyer can refine their property search to look for eco-friendly properties with solar panels on RealEstate.com.au
- 85% of Aussies say solar panels boost property prices.
- The Clean Energy Regulator reported that one in four Australian homes have solar panels on their roof.
- Solar installations increase a home’s resale value by up to $6,000 for each kilowatt of solar panels installed, or by about 4% of the home’s value. However, the type of solar panel and the geographical location will both play a role.
- Houses with solar panels tend to sell faster, up to 20% than those without solar panels.
Whether you want to sell your property or not, you might be wondering, before installing a residential solar system, if solar panels increase the value of your home. It turns out, the answer is a resounding YES.
We’ll look at how much solar panels can boost the value of your home and whether buyers are really searching for properties with solar energy systems in this blog post. With this information, you can decide whether or not solar panels are a good investment for your home. Let’s begin!
If you’re new to solar panel systems, don’t fret! Read our Top 5 Reasons to Install a Solar System Now to help you get started with your first solar panel system.
According to Clean Energy Regulator data, more than 2.68 million rooftop solar power systems have been installed in Australia as of 31 December 2020, which means one in four homes have solar panels on their roof. And with rising concerns about climate change and skyrocketing energy bills, it only makes sense why more households are now turning towards more renewable sources of energy.
Did you know?
A solar system can add two kinds of value to your home: investment value and consumption value.
The actual monetary value it adds to the sale price of your home is called investment value.
According to the Australian Real Estate Survey, over 85% of people agreed that solar panels and solar batteries add value to their property. More and more Australians are increasingly turning to sustainable energy sources, and solar power stands out among the rest.
But how much value does solar add to the home?
A survey conducted by Origin Energy revealed that the value of a home increases based on the number of solar panels installed on its rooftop. Note that each 1kW of solar installed can improve the value of your home by up to $6,000. A 5kW installation can boost the value of your home by $29,000.
Solar panels can increase the value of your home by up to 4%. For instance, if your home is valued at $300,000, the increase may be anywhere from $9,000 to $12,000. Aside from the added monetary value that solar panels provide, Momentum Energy estimates properties with solar panels sell faster up to 20% than those without.
So, do solar panels actually save you money? The short answer is yes.
While the initial investment may be high, solar panels can greatly cut, if not completely eliminate, your monthly utility bills. These continued energy savings are a fantastic addition to the elevation in property values. The payback year of a Venergy tailored solar system is around 3 years.
If you’re wondering, you may use this STC calculator to estimate how much money you could save by installing solar panels.
Important: Purchasing a property that already has solar panels installed can be an attractive offer for a prospective buyer trying to lower their environmental impact and electrical expenses.
Consumption value refers to the environmental benefits of having an environmentally friendly energy source.
The amount of value that a solar panel system can add to your home depends on a number of factors. Some of the most prominent include:
1. Location of your home – Installations in more active solar markets can get you a higher return on your investment than the same installation in a less developed market.
2. Size of the installation – Your property value’s increase is directly related to the number and quality of solar panels you have installed. The more you have, and the better quality they are, the more your home’s value will increase.
3. Value of your home – Larger, more expensive homes equal higher boosts in property value when a solar panel system is installed.
Important: Solar panels could be a good option for you if you’re thinking about selling your home in the near future or want to add value over time. Speaking with your real estate agent before making a decision will help you determine whether the addition will help your property stand out amongst the rest in the market and increase its saleable value.
Interested in Solar? We are Australia’s leading commercial and residential solar energy company, providing high-quality solar installations and saving thousands of dollars every year for Aussie homes and businesses using clean, renewable energy.
If you want to make Venergy your solar choice, get in touch with one of our solar experts and receive a free personalised quote by calling us on 1800 836 374. We can help design a solar system best suited to your budget and based on your energy usage and home. Need more help? We’ve put some of the best solar energy and purchasing tips we’ve learnt over the past 12 years on our website, visit www.venergyaustralia.com.au/category/blog/.