Do Solar Panels really increase the value of a house?
Thinking of selling a house or wanting to increase the value of a property? There are some ways to do this. One often ignored but a highly-profitable way is by installing a solar power system. Not only do solar power save money on electricity bills (while also helping our planet), but research specifies that the more solar panels there are on a roof, the higher the value of the home. Solar power could be one of the best way to increase a home’s value, as well as reduce the energy bill. Maintenance and improvements can hopefully help hold or improve a property’s value. Increasing the value of a home makes a lot of sense, but what is the most effective way to do this? Not all renovations or improvements increase the value enough to hide the cost involved.
Some research sources, suggest as example, an installation of 5kW worth of solar panels on a roof of a home might add an extra $29,000 onto its current value! Other sources state that 57 percent of householders in Australia say that they might be willing to pay up to $10,000 more to shop for a house equipped with solar.
Australians home owners' opinion and interest about Solar Energy
Australians believe homes with solar are more valuable than a house without Solar. Based on research survey of 1,005 Australians aged between 18-79 from all States and Territories in 2018, it was found that 77% of Australians think a house with solar is more valuable than a house on traditional energy sources. With 57% of householders saying they might pay up to $10,000 more for a home equipped with solar, and 60% would pay a minimum of that much more for a home with both solar and a battery. It’s not only excellent news for owner-occupiers, with 55% of renters saying they might be willing to pay up to $10 per week more in rent for a property with solar. The survey also checked out the adoption of solar in Australian homes, revealing that while only 20% of individuals currently have solar panels installed, 57% commit to having a solar power system installed within the next 5 years.
Government’s Solar Panel Initiative Program for Renters
Renters have also indicated that they’re willing to pay more for rentals with solar power installed – a little surprise after considering the direct savings on electricity bills. Therefore, landlords who are looking to increase the value of an investment property can benefit greatly from installing solar panels. Not only can landlords charge more in rent, but the appeal of solar for renters means the property is more likely to be rented out all the time. Most landlords will recognize the value add of solar system installation. Some states currently offer rebates specifically for landlords. The Solar for Rentals Program (VIC) offers eligible rental providers a rebate of up to $1,400 for the installation of solar panels on their property. Eligible rental providers can also apply for an interest-free loan of up to $1,400 to further reduce the upfront cost of a solar installation system.
Solar Panels on a house might be a good investment
Having solar power system installed on a home can make it sell faster or increase demand and the property’s value. Compared to other properties without solar power, the property could sell up to 20% faster. This too, is part of the value that solar power can add to your home.
Property’s value isn’t the only benefit of solar power
Even without selling a property, the benefits of getting solar energy installed can still be enjoyed. Over the years, the savings made will recoup the price of the installation and ongoing savings on electricity bill. So in brief, one of the simplest ways to add value to a property is to install alternative sustainable energy. Not only will the resale value of the property be increased, there will be the benefit of future savings on electricity bill even if the house is not up for sale.
Australians preferences for solar power
Surveys and studies indicate that the Australians buyers not only prefer solar power, but in many cases actually choose homes with solar installation over those without. This includes renters, many of whom who would be willing to pay extra rent for a house with solar panels. Therefore, home-owners looking to extend the value of their rental homes would also like this trend. Not only can higher rent be charged, it is also due to the fact that renters actually prefer solar power. Such homes are more likely to be continuously rented out, reducing the unoccupancy rate. Most landlords would recognize the value in this.
Solar power is produced during the day, therefore making the most of its energy production through is mostly advantageous.
Some useful tips to benefit more from a solar power system:
- Take showers during the day and do the laundry through the day.
- Replace old appliances like refrigerators that tend to shovel in power.
- Use LED lights or bulbs that save energy in the evenings.
- Make sure the pool pump runs during the day not in the night.
- Use air-conditioning to cool the house during the day and switch it off late at night.
Talk to the Solar Panel Experts
We have an exclusive and prosperous position in Australia, with high to extreme sun exposure and plenty of space for solar panels. If you want to install a solar panel system at your house or commercial property, get in touch with the experts at Ultimate Energy Australia to find out more about solar power and kick start your solar journey earlier, rather than later.
We’re available on 1300 414 264.