If you’re thinking about investing in solar power for a greener future, there’s a little part of you that might also be wondering how it affects property value.
Whether you are looking at selling in the near or distant future, taking steps to improve your property value can be a win-win for both buyers and sellers alike. While popular projects often include kitchen or bathroom renovations, upgrading the roof or even installing a granny flat, there’s another quiet achiever that can both save the world and lift the value of your home: solar power.
Not only will the installation of solar panels help current and future homeowners to save money on their electricity bills, but there’s also growing evidence to suggest that the more solar panels there are on the roof, the higher the value of your home will be.
Why Solar Power Can Increase Property Value
Investing in renewable energy is a hot topic globally, and if the latest election results are any indication, it’s also on the minds of many Australians. In addition, there is a strong public awareness of solar power and how solar panels work, which works in the favour of vendors when leveraging the feature as a selling point of your property.
In the past five years, the proportion of Australia’s electricity generated from renewable energy such as solar power has almost doubled, increasing from 16.9% in 2017 to 32.5% in 2022. As increased environmental awareness is seeing the world turn away from coal and gas, roughly 25% of Australian households are now powered by solar panels.
Depending on the size of your system and where you live in Australia, installing solar power can cost anywhere between $3,000 and $6,000 before rebates apply. This is arguably the biggest barrier for those pondering whether this form of investment is worth it or not, but when compared to the prices of other renovation projects designed to boost property value, it suddenly looks a lot more appealing.
Given the skyrocketing price of power right around the nation, it should come as no surprise that a growing number of Australians are also specifically looking for solar powered properties to protect them against future turmoil linked to the power grid.
In fact, a recent report from the Australian Energy Market Operator (AEMO) found that wholesale power costs soared to unprecedented levels in the three months to June 30, 2022, amid the crisis engulfing the energy system.
Average prices for the quarter were $264 per megawatt hour – a mind boggling 203% increase on the first three months of the year, and about six times higher than the long-term trend. Without access to solar power and storage batteries, there’s nothing that homeowners can do other than simply absorb the extra bills – not ideal when coupled with rising interest rates.
As such, house hunters are increasingly looking to pay more for a house in the short term, to spend less in the long term. With properties already kitted out with solar systems, it’s easy to understand why paying a slightly more upfront cost is worth it, particularly for owner occupiers who intend on staying put at the property for many years into the future.
For homeowners wondering if solar panels are a good way to boost their property value, they need the numbers – so exactly how much more can they expect to receive from offers of sale? Well, with an estimated increase of almost $6000 dollars per kilowatt of solar energy, this estimate indicates a rise of over $29,000 in the retail value of the home with a 5kW installation – not a bad investment at all by any means.
Should you be looking to sell your home or purchase a new one, enlisting the services of a free property advisor like ESPA can often be a game changer. As an example, your advisor would likely research the property, local agents, check the zoning, evaluate market conditions, and communicate clearly with you regarding all of your options – but where do you find one?
Take The Stress Out Of Selling Property
As a completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.