Considering an energy-efficient upgrade and wondering if solar panels add value to your home? Installing solar energy systems on residential properties is becoming a no-brainer among homeowners looking for ways to reduce their environmental footprint and save on electricity bills.
However, an important question that many people ask is whether installing solar panels can increase the value of their home, making it more desirable to buyers once they decide to sell. In this guide, we’ll dive into the research and explore the potential benefits of investing in solar power for your property value.
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Do solar panels add value to your home?
The short answer is yes. A 2023 Commbank newsroom report found more than two-thirds of Australians (71%) believed a home with solar panels and other energy-efficient features was more valuable than a property without.
How much value does solar add to a home?
Now we know solar can add value to your home, the next question is by how much. Pinpointing a precise figure is challenging as it depends on what buyers will pay in your area. That being said, a 2022 Origin Energy survey indicates potential buyers are willing to pay up to $10,000 more for a solar-equipped property.
Also, according to Domain’s 2024 Sustainability in Property Report, houses and apartments with energy-efficient features can sell for $112,000 and $70,000 more than their less-efficient counterparts respectively. However, it’s important to note that an energy-efficient home encompasses more than just solar panels — it refers to design, building materials, and fixtures.
Given the average solar system cost is roughly $5,100, the value panels may add when the time comes to sell could be a real bonus. This is especially true if you’ve lived in the home for a few years and your solar has been helping offset your electricity bills.
Are buyers looking for homes with solar?
The answer to that question is also a resounding yes. The 2024 Property Seeker report by realestate.com.au found that 70% of homebuyers are interested in sustainable features like solar panels.
Environmental consciousness is on the rise and potential homebuyers in Australia are not exempt from this trend. More people are considering the impact their homes have on the environment, and solar power is one of three popular ways to reduce their carbon footprint. Eco-friendly benefits are a plus, as is saving on power bills through a solar feed-in tariff.
What size solar system are homebuyers looking for?
Ultimately, the size of the solar system depends on individual needs and preferences. Some might be content with a smaller system that offsets a portion of their energy usage, while others might want a larger system with a solar battery that can power their entire home.
But one thing is for sure — buyers are considering solar when searching for their dream home or next investment.
Factors to consider before installing solar panels
As a homeowner, it’s important to carefully choose the best solar system for your home.
While we now know that solar does increase house values, it’s important to keep the following in mind to maximise your property’s future value and minimise your upfront costs:
- Your home’s location
- Solar rebates in your state or territory
- Solar panel size
- Positioning of your solar panels
- Solar panel installation quality and cost
So, before you make the investment, do some research and consult with experts to ensure you’re making a smart decision for your home’s future.
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How to leverage solar to potential buyers
With the increased interest in sustainable living, solar power is a huge selling point for homes. Making sure to highlight the benefits of having solar, such as lower energy bills and a reduced carbon footprint, are easy ways to get buyers interested. This, however, will depend entirely on your marketing strategy and whether you are selling through a real estate agency.
Most real estate agencies are active on Facebook and Instagram, which can help draw more attention by showcasing your home’s solar. This is particularly important to potential buyers if there are energy-draining appliances at your property such as a pool pump.
With the right marketing strategy, your home should be in the best position to sell as quickly and as profitably as possible.
Solar plans and prices
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Is solar a smarter way of adding value to your home?
In today’s competitive housing market, every little advantage counts, and having a solar system already installed can give you a leg up. Not only will buyers love avoiding upfront installation costs, but they’ll also appreciate all that free power rolling in. And let’s face it, who doesn’t love saving money in this economy?
As the world becomes more energy-conscious, buyers can benefit from a home that is less reliant on grid electricity and harnesses energy efficiencies. If the price is right, it really can be a win-win situation for everyone involved. Hit the link below to compare some of the best solar installers in Australia.
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