Does a solar power system increase the value of a home? In short, yes solar will increase your property value.
But By how much?
Well, that depends on a number of factors – the size of the installation, the buyers, the area and of course the quality of the installation at the point of sale. In fact, a low-quality solar system on a good quality house can actually detract from the home’s value (buyers may think – if they have skimped on the solar system, what else have they skimped on?)
Some estimates have put a high-quality 5kw installation at an increase in property value of $29,000 . An interview with a Housing Industry Association economist quoted the Australian Bureau of Statistics reporting that going green can increase the value of property over $30,000 . That’s over a 200% return, not counting the returns in actual energy production between now and when you sell.
Saving Money Beats Looking Good
Think about the nature of the upgrade. A purely visual upgrade like opening a kitchen or painting the walls isn’t a functional change. It may appeal to some buyers, but you’re still crossing fingers that the buyers like the look enough to justify the cost of the upgrade.
On the other hand, a functional upgrade like a solar system is assured to benefit the buyers in the way that matters… in their pockets. Buyers are certain to generate free eco-friendly energy for the lifetime of the panels, saving them on their energy bills.
Study Results Show Solar Adds Property Value
A combined study from Origin and realestate.com.au found 85% of Australians think solar rooftop panels add to the value of a property . Buyers looking for houses with solar on sites like realestate.com.au can actively filter out properties that don’t have solar, leaving owners with solar able to be quickly discovered.
Buying the Future
The eco-friendly angle also is a great feel-good factor. People as a rule like to feel like they’re contributing to their community. Carbon energy is a top-of-mind issue and being someone to take the first step against carbon emissions can be a great feeling. And as they say, people buy feelings, not products. Especially with houses and cars.
Sell Your Home Quickly
Selling a house can be an absolute life-stopper. When your property goes on the market, it can be a massive battle to achieve anything else until it’s sold. Having solar panels can help you sell your home quicker. We’ve read that panels can help sell your home 20% faster. That way you can move on with your life and get settled into your new place as quickly as possible.
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