Do Solar Panels Increase Home Value?

Preparing to sell your property but confused about how to boost your home value to make it stand out in the real estate market?

While repainting or grooming the lawn can give a fresh look to your house that might ‘up’ its value, it is not a long-term solution. Investing in a solar system for your property is a smart idea, as solar panels can last for 25 to 30 years and have several advantages to attract buyers.

Why Home Buyers Choose Solar?

As outlined in our last blog, solar power is the most abundant and renewable energy resource and with Australians enjoying plenty of sunlight, solar panels are their first preference. Moreover, the environmental impact of global warming has prompted several Australians to join the global trend of investing in a sustainable and clean energy future that reduces their carbon footprints.

As greater public awareness precedes the adoption of solar energy, more and more people are looking for solar panels during house-hunting – this is something that you can use to your advantage when selling your solar-powered property.

Many buyers don’t mind spending a bit more when purchasing a property if it gives them good returns in the long run. If the purchasers are worried about the increasing electricity costs and massive maintenance requirements for the power system, they would definitely opt for houses that already have solar panels installed. In this case, your house run by solar energy is an absolute win for potential customers.

Solar Panels Boost Your Home’s Value – The Sunny Side of Selling

Thinking about going solar? You’re probably picturing lower electricity bills and a lesser carbon footprint. But what about when it’s time to sell? Do those polished panels on your roof translate into a higher price for your home?

The short answer is a resounding yes. In the ever-evolving real estate market, homes with solar panels are progressively catching the eye of savvy buyers, and they’re often willing to pay a premium price for them. Let’s delve into why a solar-powered home isn’t just a clever way to live, but also a savvy investment for the future.

More Than Just Savings: The Tangible Value of Solar

The most instant and noticeable benefit of solar panels is the reduction in monthly electricity costs. Imagine being bright enough to tell a possible buyer that their future energy bills could be meaningfully lower, or even non-existent. In a world of rising energy prices, that’s an authoritative selling point.

But the value extends beyond the monthly savings. A landmark study by the National Renewable Energy Laboratory (NREL) found that for every dollar saved on annual energy costs, a home’s value upsurges by about $20. This means a solar panel system that saves you $400 a year could add around $8,000 to your home’s value.

More recent data from Zillow backs this up, revealing that homes with solar panels can sell for, on average, 4.1% more than comparable homes without them. In some markets, that percentage can be even higher.

The “Green” Allure: A Sustainable Selling Point

Today’s homebuyers are more ecologically sentient than ever before. A home prepared with solar panels is a clear indication of energy efficiency and sustainability, which can be a major factor. For many, the prospect of reducing their carbon footprint is a value in itself, making their home stand out from the competition.

Ponder of it this way: just as a newly remodeled kitchen or a gorgeously landscaped backyard adds to a home’s appeal, solar panels are becoming a modern, desirable feature that signals a forward-thinking and well-maintained property.

Ownership is Key: Leased vs. Owned Systems

It’s vital to comprehend that the increase in home value is chiefly associated with owned solar panel systems. When you own the panels, they are measured a part of the property, much like a deck or a swimming pool.

On the other hand, a leased solar system can sometimes obscure a home sale. The lease agreement, which can span 20 years or more, wishes to be transferred to the new owner, who must qualify and agree to the terms.

This can be a hurdle for some buyers. If you’re seeing solar with the intention of adding value to your home, purchasing the system outright or financing it with a solar loan is the recommended path.

Solar System as an Investment That Pays Off

Installing solar panels is more than just an eco-friendly excellence; it’s a sound financial investment. You get to relish the instant benefits of lower energy bills and the satisfaction of maintainable living, all while increasing the long-term value of your property.

When it comes time to sell, your solar-powered home will not only entice a wider pool of interested buyers but will also likely command a sophisticated price and spend less time on the market. In a world progressively focused on sustainability and efficiency, those panels on your roof are an outstanding testament to a home that is truly future-ready.

The installation of a solar system can save almost half of the user’s electricity bill. According to an article published by Solar Quotes, a 6kW solar system in a household of five people generated a quarterly electricity bill of $502 as opposed to a $930 quarterly bill before installing the solar panels, and in a year, they saved a total of $1,600. No wonder more than 2.53 million Australian households have installed solar power systems, and the demand is constantly increasing.

Do Solar Panels Really Increase Home Value?

Yes, installing solar panels can increase your home’s value. Buyers are often attracted to properties with lower electricity bills, energy independence, and eco-friendly features. In Australia, solar-equipped homes typically sell faster and at a premium compared to similar homes without solar. Think of it as an investment that not only saves you money on power but also boosts the resale appeal of your property.

How Can a Solar Power System Increase Property Value?

Think of solar panels as more than just a way to cut your power bills, they’re an investment in your home’s future. A property with solar is instantly more attractive to buyers because it promises lower electricity costs and a greener lifestyle.

It shows that the home is modern, energy-efficient, and ready for the future. On top of that, people love the idea of moving into a house that’s already set up to save them money from day one. All of this can make your property stand out in the market and even sell for a higher price than similar homes without solar.

How Much do Solar Panels Cost?

The price of solar panels depends on the size of the family and their energy consumption as well as the number of solar PV panels installed in the household. At Solar Miner, a 6.6kW solar system costs approx. $2,491 after a government rebate of up to $1,850. This is a very nominal amount that you would pay to leverage the net worth of your property as compared to adding a swimming pool or modernising the kitchen that can cost you a fortune.

Take the Next Step

Now that you know how installing solar panels can make your property value shoot up, let us help you find a solar PV system that fits your budget and the size of your home. Speak with one of our expert solar consultants today. Solar Miner is the most trusted provider of solar panels in households across Australia.