As more and more Australians’ each year make the switch to renewable energy sources, you may be wondering, “do homes with solar panels sell faster?” Well, you’ve come to the right place; Captain Green is here to run you through the ins and outs of how solar panels impact home value.
As of 2021, Origin Energy state that 57 percent of homeowners in Australia would be willing to pay up to $10,000 more to buy a house equipped with solar panels. New research from realestate.com.au also found that 85% of Australians identify solar rooftop panels as a feature that adds to a property’s value.
So, will your home sell faster, with solar panels? In most cases, yes.
Why Do Homes With Solar Panels Sell Faster?
When it comes to selling a home, how quickly you sell can be just as important as the price for which it is sold. With a significant sum of money tied up in the sale of their home, many people cannot achieve other goals until it is sold.
How quickly your home is sold is dependent on many factors. For instance, having solar panels on your home could help it stand out in a competitive metropolitan market or generate enough appeal to get buyers over the line in a more regional setting.
Do homes with solar panels sell faster? Typically, yes. If you are looking to sell your home as quickly as possible, having attractive features such as solar panels to advertise will only increase interest and reduce the time taken to get it off the market.
How Does Solar Add to Home Value?
With the current emphasis on renewable energy forms and the abundance of sunny days in Australia, solar panels are the obvious choice for homeowners looking to reduce their energy bills and increase the value of their homes. In addition, there is a solid public awareness regarding solar panels and how they work. Prospective buyers looking to reduce their environmental footprint are often attracted to purchasing a property already equipped with a solar panel system.
But, just how much do solar panels increase home value on average? And why exactly do homes with solar panels sell faster?
As Australia’s leading provider of solar panel systems, Captain Green is committed to ensuring that Australians across the country experience great results from the solar solutions that we are passionate about. As such, we’ll discuss everything you need to know about solar panels in the context of the property market so that you can make a more informed decision regarding the sale of your home.
Continue reading to learn more about how solar panels increase home value in Australia as of 2021.
Why Do Solar Panels Increase Home Value?
For most Australians, their home is their primary asset; good quality maintenance and additions ensures it holds or increases its value over time. As such, homeowners across the country are constantly searching for potential features or selling points they can add to their homes.
With a competitive property market and buyers aware of gimmicks and quick fixes, meaningful additions and climate conscious initiatives are great ways to increase interest in your home.
As the years roll on, many Australians are becoming more and more concerned about reducing their environmental footprint. By installing solar panels, Australians can reduce their emissions, save money on their electricity bills, and increase the overall appeal of their property. Installing solar panels will only become more enticing as solar panels increase in efficiency and their price point is reduced. Overall, they are a worthwhile investment to reduce power bills, reliance on the power grid and generate interest from buyers.
So, do solar panels hurt the resale value of your home? No!
Well, just how much does solar add to home value?
How Much Does Solar Add to Home Value?
The value added to your home when installing a solar panel system depends on the size of the installation. Generally speaking, the more panels installed, the more significant the increase in the property’s value. Current estimates put the increased value from a 5kW installation at roughly $29,000 AUD.
Moreover, the increase in value will depend on the quality of the solar panels themselves and the material from which they are constructed. When deciding what type of solar panels you should install to increase home value, you should consider the following:
- Wattage capacity
- Size of the panels
- Durability of materials
- The efficiency of the invertor
- The reputation of the provider
Another important consideration is how the energy will be utilised within your home. It is all well and good to have solar panels generating electricity, but if most of your appliances and utilities use other energy sources, buyers may be less attracted. Buyers need to see the utility they will be receiving from the panels on their new home. Installing energy-efficient appliances and even solar battery storage can only increase the appeal of your home’s solar panels and boost its carbon-conscious profile.
Unlike other additions such as pools, it is hard to overcapitalise on your investment with solar panels. To varying degrees, all buyers are looking for homes that are energy efficient. Electricity is also essential to power appliances and basic functions within the home, such as lights. Also, the number of panels you can install, and your overall spending is limited by the available area you have on your roof.
Do Solar Panels Hurt the Resale Value of Your Home?
Do solar panels hurt the resale value of your home? No, but having leased solar panels could plant a seed of doubt in the buyers’ minds. When it comes to purchasing and installing solar power, there are various methods available to homeowners to buy and finance their panels.
Owned solar panels refers to when a homeowner purchases the panels, has them installed, and has complete ownership. Buying panels outright involves paying the total upfront cost using personal funds, government grants and utilising tax rebates. These types of panels are most attractive to buyers, as they can move in and not have to worry about any ongoing expenses or maintenance while the panels are under warranty.
Leased panels, however, can be slightly trickier. In this case, the homeowner does not pay an upfront cost to purchase the panels and instead pays a monthly fee to use the solar power generated from the system. While this may seem attractive for individuals preparing their homes for auction with a minimal upfront cost, it can be a sticking point for buyers. The reason is that under the lease agreement, the original homeowner will have to maintain or buy out the lease, or transfer it to the new owner. This only increases the negotiations and paperwork required throughout the settlement. Additionally, the third party overseeing the lease may not permit the new homeowner to enter the lease agreement due to poor credit history.
Long story short: owned solar panels seem to be the favoured option for potential buyers and are a more attractive selling point than leased panels.
How to Express the Value of Your Solar Panel Systems to Home Buyers
When purchasing a property, a buyer is either looking for somewhere to live or an investment. To better understand what they are getting themselves into, an astute buyer will ask many questions surrounding the structural history of the building and its energy efficiency. While we are experts in solar panels and all the incredible benefits that come with solar, a real estate agent will help with communicating this to potential buyers. Be sure to share the cost-saving benefits of the installed solar panels with interested parties. Clear communication could be the key to generating serious interest or closing a deal with a buyer.
So, do homes with solar panels sell faster? Yes! They provide an additional point of interest to a home, improve the energy profile, and typically reduce the time to get it off the market.
How much do solar panels increase home value also depends on the quality of installation. If you are looking to take advantage of solar technology in preparation for selling your home, look no further than Captain Green. We love seeing our customers reap the rewards of expertly installed and configured solar power systems. With over a decade of experience and an excellent range of solar panels, we can help with a personalised solar strategy, solar panel installation, maintenance, and management. Call our team today for a free solar strategy consultation or request a quote through our contact page.