Thinking of selling? Want to increase the value of your property? There are many ways to do this, but one often overlooked but highly-profitable way is by installing solar PV systems. Not only do they save money on energy bills (while also helping our planet), but research indicates that the more solar panels there are on the roof, the higher the value your home will be.
How much does solar actually add to the value of your home?
Figures vary depending on the source; one source (momentumenergy.com.au) estimates the increase in retail value at just under $6000 dollars per kilowatt of solar energy. This means if you install 5kW worth of solar panels on your roof it could add an additional $29,000 onto its current price! Other sources (Origin Energy and RealEstate.com.au) state that 57 percent of homeowners in Australia say that they would willing pay up to $10,000 more to buy a house equipped with solar. This amount increases even more with the addition of battery storage. Either way, there’s little doubt that solar is a very marketable asset for your home.
A crowd-pleasing investment
Many people think that costly home improvements like adding a pool or remodelling your bathroom and kitchen will help increase their home’s resale value – and they might for the right buyer. In reality, not everyone shares the same taste or wants the hassle of maintaining something like a pool.
Solar power, however, should appeal to the vast majority of buyers. Everyone needs electricity or some form of power in the home; if prospective buyers are aware of the potential savings on their energy bills, they’ll most certainly view solar panels as a selling point. In fact, according to joint research by Origin Energy and RealEstate.com.au, the data clearly demonstrates that Australians overwhelmingly believe solar panels increase house value.
A win for landlords and a win for renters
Renters have also indicated that they are willing to pay more for rentals with solar installed – little surprise when you consider the direct savings on their energy bills. Therefore, landlords looking to increase the value of their investment property can benefit greatly from installing solar panels. Not only can they charge more in rent, but the appeal of solar for renters means your property is more likely to be rented out all the time. All landlords will recognise the value in that.
Some states currently offer rebates specifically for landlords. For example, Victoria’s Solar for Rentals program offers eligible rental providers a rebate of up to $1,400 for the installation of solar panels on their property. Eligible landlords can also apply for an interest-free loan of up to $1,400 to further reduce the upfront cost of the solar panel system.
But what about the upfront cost?
Although the price of solar panels has fallen dramatically in recent years, they still have an upfront cost that might feel like a barrier for some homeowners.
If you’re not sure whether or not you can afford a solar system, here are a few things to keep in mind. Firstly, the Australian federal government and most state governments offer rebates and incentives to help offset the cost of purchasing. These range from subsidies to interest-free loans. You can also receive a feed-in-tariff to help with ongoing costs while you still reside in your home.
Also, to make the purchase and installation affordable for those without sufficient capital, many solar installers offer interest-free loans or ‘buy now, pay later’ plans. These plans give you the ability to get solar straight away and pay it off in small, monthly instalments.
Solar truly is accessible for most Australians. If you want to know how much solar panels cost in your local area and access the best deal, you can use Energy Matters’ quick solar quote tool to receive three obligation-free quotes from trusted local installers.
Even if you don’t sell now, you’ll still reap the benefits
Regardless of whether or not you decide to sell your home, installing solar panels will still provide fantastic benefits. In a few short years, you will recoup the upfront costs by saving on your energy bills. So, not only will the resale value of your home be increased, there will be the benefit of future savings if you don’t sell straight away.
All in all, solar panels are a great investment for homeowners and landlords. Not only do they save money on energy bills (while also helping our planet), but research indicates that the more solar panels there are on the roof, the higher your home’s value will be. Remember that there are also a wide range of rebates, incentives and loans available to help with upfront costs. If you’re looking to add equity to your property while taking advantage of sunlight savings, we can help find out if it makes sense for you. Simply complete this quick quiz and we’ll send you up to 3 obligation-free quotes from trusted installers in your local area. Going solar can be simple. Is it time for you to invest in a new way of power generation?