How Much Solar Power Add To Property Value?

Solar Power adds Property Value

Installation of a solar power system is one of the fastest ways of increasing the value of both residential and commercial properties in Australia. It is also a great way of reducing the cost of your electricity bill at the same time. A residential property is one of the biggest assets of a person and maintaining it properly is essential in order to ensure a high value of the property. Proper maintenance and upgrades will improve the lifestyle of the people living in the house and will also add to the home value. The steeply increasing cost of electricity and awareness about the harmful effects of climate change has encouraged a lot of people in Australia to switch to solar energy. Although the upfront cost of installing solar panels is high, solar power adds to the property value more than any other home improvement projects while helping to save a large amount of money on electricity bills. 

Solar panels generate electricity by absorbing energy from the sun and this method is efficient and cost-effective as solar energy is a renewable source of energy and will be available to people as long as the sun is out there. Installing a solar power system is easy in Australia right now due to the availability of several incentives and solar rebates by the Australian government

Solar panels do not require much maintenance as there are no moving parts; not only that, but the solar panels also come with a performance warranty of 25 years and with a product warranty of 10 to 15 years. Solar experts believe that properties that have solar power systems installed are more valuable and receive a better resale value compared to properties that do not have a solar power system installed. 

Research and studies conducted by solar experts in Australia show that the majority of people are willing to pay more than the market price of a property due to the installation of solar panels. Research also shows that house renters in Australia are also willing to pay a bit more rent for properties that come with solar panels. The reason behind this is that solar panels reduce the cost of electricity bills by a significant amount. 

Factors that affect the value of a property due to solar panels are:

  • Price of electricity in the state or area
  • Upfront cost of installing a solar power system.
  • Value of replacing a solar power system.
  • Weather conditions of the region
  • Frequency of grid blackouts
  • Age of solar power system installation
  • Size of the solar panels and other solar components 
  • The amount of money under rebates and incentives offered by the Australian government
  • Understanding the importance of solar energy. 
  • Location of the residential property

Homeowners in Australia receive quite a few additional benefits for the installation of solar panels other than the increased property value in comparison to non-solar houses. 

These extra advantages are:

  • Rebates and incentives by the state, local, and federal governments of Australia on the installation of solar power systems. 
  • Replacement of electricity from the grid with a low priced, sustainable and reliable energy generation option. 
  • A higher selling price of residential properties compared to non-solar properties. 
  • Properties with solar panels installed are often sold faster compared to those residences without solar panels. 
  • 100 per cent return on investment upon selling the house with installed solar panels. 

New homeowners who purchase a property with solar panels installed also experience a few additional advantages. People who buy a solar power system equipped home can potentially get a 200 per cent return on the purchasing price of the property. 

These extra advantages are:

  • Monthly or annual savings in the cost of electricity throughout the entire longevity of the solar panels, which is typically 25 to 30 years. 
  • Reduction in noise pollution, air pollution, release of carbon dioxide and other greenhouse gases, and carbon footprint.
  • Increase property resale value if they are planning to put the house for sale. 

It is not necessary that you will have to sell your solar panel installed house in order to experience the advantages of solar power. There are benefits that every homeowner will receive even without selling their home. The amount of money saved due to the use of solar electricity depends on where the house is located and the amount of power it generates along with the local electricity cost. As solar panels generate electricity during the day, it is advised to use heavy electrical appliances during the day. For example, use hot water pumps, washing machines, dishwashers, and so on during the day. 

The advantages of solar power systems in Australia allows people to consider solar panels as a life-changing factor for a home. Research and studies show that the cost of a residential property boosts at least $25,000 due to the installation of a 5kW solar power system. As there is a prediction that electricity costs in Australia will increase more in the future, the advantages of using solar energy to generate electricity will become more attractive to the Australian people. 

Conclusion

One thing that every homeowner notices is that whenever you put a house on the market for sale, it is tough to focus on any other goals unless and until the house is sold. Putting a house on sale and waiting for the right buyer often turns out to be a stressful waiting period. Installation of a good quality solar power system can do the trick for you and make sure that the house is sold within a short period of time at the deserving price.  

If you are a homeowner in Australia, then your property is most probably your biggest asset and selling it with solar panels will be easier for you as you already know how much solar add to property value. However, even if you have no plans of selling your property, you will still receive a lot of advantages from solar power.

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