Will New Solar Panels Increase My Home’s Property Value?
Solar energy in Australia has experienced a steady upward trend over recent years. While some homeowners jump right to the environmental benefits, others aren’t sure if they are ready to commit to a solar-powered lifestyle. One of the biggest questions that is asked is: how will a solar system affect my property value?
Residential Solar Cost vs. Savings
Solar panels and the labour required to install them come at a cost. You will have to pay an installer just like you would when hiring someone to add a deck or replace a roof. The good news is that the cost of new solar systems had dropped dramatically over the past decades.
A 1 kW system used to cost around $10,000. Now you can buy a 3 kW system for between $3,400 and $5,600. That’s a good size for most average family homes. If you need something bigger, a 5 kW system usually costs between $4,900 and $8,000.
Even on the low end, a project that costs thousands of dollars is a big investment for most people. That’s why it’s important to know your potential savings before you invest in renewable energy.
Your savings will vary based on your electricity consumption and the system’s capacity. The average household in Australia consumes approximately 6,000 kW annually. For a family living in an area like Bondi Junction, where peak usage hours are between 9 am and 5 pm, you could lower your power bill by $730 per year. Your system could pay for itself by the sixth year of use.
You should also learn about financing options and government incentives to help increase value by lowering the cost of installation. Solar savings will have an impact on property value.
Home Buyers and Solar Panels
In most cases, solar panels will increase your home’s property value. Much will depend on the perspective of the buyer.
Origin Energy conducted a survey that found that 85% of Australians think that solar panels add value to real estate. This is especially true in communities that have experienced electricity price increases.
The size of your solar system also plays a role. Usually, the more panels you have, the greater the value increase will be. A 5 kW system could raise your value by as much as $29,000.
When selling a home with solar panels, make sure you do the following to give your property the best chance at a high sale price:
- Make sure you have a listing on sites like Homely.com.au. Verify that information is accurate and that your solar system is mentioned. Your listing should appear when using the site’s Eco Search filters.
- Discuss the benefits with your real estate agent to prepare them to talk with buyers. Make sure they know the benefits of solar before they show your home.
- Prepare a document showing the cost of electricity before and after solar installation to share with buyers. This will show the monthly savings potential that could justify a higher purchase price.
- Clean your panels and make sure they look their best to increase curb appeal.
- Have the specs for your system readily available for buyers, including panel details and capacity.
Solar panels could help you get more money for your home. Learn about sustainable energy to discover more ways to increase your property value.