How Solar Power Adds Value to Your Home

The world is undergoing a transition from fossil fuels to clean, sustainable energy.

Global organisations such as Ikea and Google are seeing the financial benefits of solar. They are either purchasing power from solar arrays or building their own solar arrays.

On the domestic level, we know 2.2 million Australian homes have solar panels on the roof. That’s a big step towards making solar the rule rather than the exception; and there’s more evidence that solar is becoming the norm when it comes to property.

Survey shows Australians value home solar

In 2017, a mortgage broker suggested banks include solar systems in mortgages. Banks typically see solar as separate to the mortgage, like installing a home entertainment system or a spa.

The argument is that by including solar in the mortgage, Australians could take advantage of record-low interest rates and avoid record-high electricity costs.

A 2018 Origin Energy survey found 77% of Australians think a house with solar is more valuable than one without. Putting aside the savings on power bills, solar represents the progressive view that individuals can act against environmental pollutants.

Nationwide House Energy Rating Scheme

Homebuyers can discover a property’s clean energy credentials by looking at its natHER rating. The Nationwide House Energy Rating scheme ranks a dwelling on how its construction materials keep the home cool in summer and warm in winter.

In Victoria, for example, all new dwellings must have a natHER rating of 6 stars (out of 10).

In April 2019, an apartment block in Cartwright, NSW, made headlines with a 7-star rating. The building includes high-performance insulation, window shading, ceiling fans and solar panels.

By installing solar panels, a home’s capacity to self-regulate its temperature is increased. That’s because it cools and heats without drawing energy from the electricity grid or an external generator.

Value of solar lies in the low power bills

While buyers may not immediately appreciate the value of rooftop solar, they are convinced when they see the savings.

Solar panel prices are now the lowest they have ever been. A good quality 5kW solar system starts from around $5,500 fully installed, and government solar rebates are available. A 5kW solar system in Sydney will generate around 20 kWh a day averaged out over a year.

If you are paying 30c per kWh, that’s over $2,000 in savings every year on your power bills. It’s also clean energy, which means you’re stopping tonnes of carbon entering the air.

Given this evidence, it’s soon clear to any buyer that solar panels represent a saving on power, and as such are an integral part of a home’s value.

If you’d like to add solar to your home, contact our Solaray experts to find the right-sized system for you.

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