Why Installing Solar Panels Can Increase the Value of Your Home
Australian homeowners are recognising that solar power has the potential to significantly cut down energy costs and reap long term gains. In fact, there are now more than 3 million rooftops with solar panels in Australia. If you’re looking to sell or rent out a property in the future, you might be wondering if installing solar panels will add value to your home. Is the initial investment worth it for sellers and property investors?
Research is telling us that prospective buyers look favourably on solar homes and are willing to pay more for them. Investing in solar could drive up property value and lead to financial wins.
In this guide to solar power and home value, we answer these questions:
- Do solar panels add value to a home?
- Do homes with solar panels sell faster?
- Is solar a smart move for investment properties?
- Should you buy solar panels outright?
- Are solar panels affordable?
Do solar panels add value to a home?
Research indicates that solar power increases home value significantly and homeowners looking to drive up their home’s resale value should consider a solar investment.
According to a survey conducted by Origin Energy, over three quarters of Australians think that solar powered homes are more valuable than comparable homes that rely on non-renewable energy sources.
More than ever, home buyers recognise that purchasing a home with a solar energy system could lead to significant savings for their household long into the future. In fact, 57% of homeowners are willing to pay $10,000 more for a home with solar.
How much will your home’s resale value increase?
The amount by which your home’s solar panels could increase property value depends on a number of factors, including where you are located, what state incentives there are, and the local price of electricity.
As with any investment, it’s important to crunch the numbers before making a decision that’s best for you. Chat with a local solar expert about what’s possible and how to get the most for your money.
Do homes with solar panels sell faster?
Having solar panels installed on your property could help it stand out from other homes on the market. After all, potential buyers are looking for the best value for their money. The addition of solar panels or a solar hot water system and the promise of lower energy bills is a big positive that could swing their decision.
Talk to your real estate agent about including solar panels as a feature on your property listing and you could attract green buyers.
A survey by the Australian Red Cross found that over 80% of young Australians are concerned or extremely concerned about climate change. Young home buyers are likely to factor environmental impact into their decision making and look more favourably on solar homes. This trend is only more likely to increase over time.
Is solar a smart move for investment properties?
If you’re planning on renting out your property rather than selling it, installing solar panels could be a win for both landlord and tenant. A survey by Origin Energy found that over half of Australian renters are willing to pay $10 more weekly rent for a home with solar power.
So while the tenant will experience the utility savings, the landlord will benefit from higher rent. Paying off a $5,000 solar power investment could take under 10 years, meaning any increases in rent would be profit for the owner after the payback period.
As a property owner, you may also be able to use a solar investment to offset your tax. Depending on where your property is located, you may also be eligible for rebates or interest free loans to purchase a solar panel system.
Should you buy solar panels outright?
In general, it’s recommended to buy solar panels outright as leased solar panels may negatively affect your home’s resale value. Although the initial investment for solar panels may seem high, you are likely to end up paying more for leased solar panels over time.
Savings on your electricity bills will typically pay off your initial investment in under 10 years, meaning an outright payment could lead to significant returns when it’s time to sell. You may also be eligible for rebates to make solar installations more affordable.
Are solar panels affordable?
A 5kW residential solar system typically costs around $5,000 to install. However, upfront costs may be reduced by engaging with programs such as ‘The Small Scale Renewable Energy Scheme’ (SRES), or by claiming solar rebates.
Solar rebates vary depending on where you live. In Western Australia, each type of solar system is eligible for a number of STCs (small scale technology certificates). Each certificate is worth a dollar amount in rebates. Currently this is around $35, but it is subject to change.
As an example, a 6.6kW system is worth 109 STCs which translates to a rebate of 109x$35 = $3,815.
Keep in mind that rebates are subject to change. We recommend investing in solar sooner than later to take advantage of the current rebates as they are likely to fall in the coming years.
Solar installations for Mandurah homes
The team at iBreeze offer solar panel and solar hot water installation services across Mandurah, Rockingham and beyond.
We make it easy to take advantage of government rebates by linking you up with them automatically in our quotes. We’re upfront and honest about the costs and potential savings.
To discuss whether solar panels will add value to your home and whether it’s the right move for you, give us a call on (08) 9534 9491 for an obligation-free chat.
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