Is solar energy the gift that keeps on giving? With the likes of government incentives and rebates*, and attractive buy now, pay later financing options, solar energy has never been more affordable. Throw in the long-term cost savings and positive environmental impacts too, and it’s also more attractive than ever. But what if it gets even better? Chances are, installing a solar energy system can also increase the value of your property. Let’s take a look at how a solar energy system can impact your property value and how you can go about selling your solar-powered home.
Positive Property Value: How Solar Can Boost the Value of your Home
Let’s get into the good stuff. According to the last survey conducted by Origin Energy on the topic, 77% of Aussies think that solar panels add value to a property, with 57% saying they would pay up to $10,000 more for a home that comes with a solar energy system. Interestingly, 55% of renters stated that they would pay at least $10 more a week for a property with solar!
Consumer sentiment aside, Origin Energy have also revealed that the value of a home can increase based on the number of solar panels installed. Each 1kW of solar installed can improve the value of your home by up to $6,000. So, a 5kW installation could boost the value of your home by $29,000 when applying this assumption.
Alternatively, Venergy concludes that solar panels can increase the value of your home by up to 4%. So if you’re home is valued at $500,000 without solar panels, you could be looking at an additional $20,000 with solar panels (remember this is up to 4%).
When it comes to valuing a solar-powered home, there’s a couple of different methods that appraisers may use. One way is to look at the cost of the system and the expected lifespan, and the other is to look at the amount of energy the solar system generates and the savings it provides.
Ensure you find an appraiser, or real estate agent, who has experience valuing solar-powered homes.
Selling Your Home with Solar
As potential buyers are becoming increasingly aware of the benefits and cost savings associated with solar, having a solar energy system can make your property more attractive. Not only do 77% of Aussies think that solar panels add value to a property, Momentum Energy estimates that properties with solar panels sell faster too. We’re talking 20% faster than homes without.
If you’re planning to sell your solar-powered home, there’s a few things you can do to ensure a smooth transaction and a maximum sale. First, gather all of the documentation, warranties and maintenance records relating to your solar energy system. This will help with the advertisement for your sale, and the new buyers will be interested in seeing these. Next, leverage solar power to your buyer. Ensure that the advertisement for your property highlights the advantages of a solar energy system including lower energy bills, increased home value for a future resale, increased rental value, and environmental sustainability too.
Be sure to work with a local real estate agent who is experienced in selling solar-powered homes. They can help you set the maximum price, advertise your home effectively and connect you with buyers who appreciate the value of a solar-powered home.
Is Solar Energy the Gift that Keeps on Giving?
So, is solar energy the gift that keeps on giving? We think it’s a resounding yes! Investing in solar energy not only saves you money in the long-term, but it’s shown to increase your property value. With a quality solar energy system, the right documentation and real estate agent, you should be able to sell your home for it’s maximum value, all the while enjoying clean energy!
If you’re interested, call us on 1300 4 SOLAR.
*Visit energy.gov.au/rebates to view up-to-date government incentives and eligibility
^Data references have been cited from Open Agent and Venergy
This article has been published for guidance purposes only. Property valuation depends on a number of factors including market conditions, the quality and size of a solar energy system, the professional appraisal, and more. Always conduct your own, up-to-date research and seek guidance from licensed valuation and real estate professionals for your home.