As the world faces more dire energy crises, there is a collective shift away from fossil-fuel-based power to renewables. This change emphasises the need for cheaper energy and a growing consciousness of the importance of environmental protection. Therefore, states everywhere are scaling up their use of eco-friendly energy sources like hydroelectric, wind and biomass. However, the most commonly adopted form is solar.
The Australian public favours solar energy in particular as ithighlights a renewable energy source thatuses the abundant sun in the Australian climate. This preference is evidenced by the results of a recent survey which displayed that 77% of Australians believe a house with a solar system is more valuable than any relying on traditional energy sources. The study also reveals that 57% of homeowners spend up to $10,000 more for a solar-panel-equipped home.
Solar panels are some ofAustralias most popular renewable energy sources. So, while switching to solar may present higher upfront costs, purchasing and installing a solar panel system can generate a positive Return On Investment (ROI).
Here are some of thefactors to consider before you go solar and boost your homes property value.
How Do Solar Panels Add Value to a Property?
Prospective buyers stand to significantly benefit from purchasing homes with solar panel installations. This advantage allows them to reduce their energy bills and lower their carbon impact. Therefore, installing solar panelsnot only makes your home eco-friendlier but also improves your propertys value. However, this increase is not universal. Instead, different factors influence precisely how much value solar panel systems add to your property.
Location plays a key role in how much your propertys value increases when you install solar panels. As an example, installing solar panels on a home in Sydney yields a higher ROI than those used on properties in less developed markets. This disparity results from less familiarity with the benefits of solar panels among realtors and buyers in such markets.
The Number of Panels
The solar panel installation size can directly influence your property value post-installation. This correlation stems from the production capacity of your solar panels, as the latter value depends on your homes size and the number of panels it can accommodate. So, take, for example, the results of a recent study showing a rise of over $29,000 in the homes retail value for a 5kW installation. This figure demonstrates that the higher the production capacity of your solar panel, the more valuable your property is.
Quality of the Solar Panels Installed
The technology used, lifetime and warranty of different solar panels vary between manufacturers. This difference directly impacts how much value your property gains after the installation. So, it is crucial to take your time and do ample, in-depth research to find the right manufacturerduring your search for solar panels for sale.
Energy Usage and Savings
Australian households use around 6000kW of electricity per year on average. Of that, 60% of your 16kW daily usage is between 9 am and 5 pm. But, consider that the local cost of (grid-sourced) electricity and energy consumption both directly impact how much value you can add post-installation. So, putting in a 2.5kW solar panel system may save you up to $730 annually on your energy bill.
One of the top considerations you must remember when adding a feature to your property is the potential for increased value.So, installing solar panels will positively impact your propertys value if the above instances are anything to go by.However, for effective results, you must select a systemthat is ideal for your location and meets your power needs.