Installing a solar and battery system can increase the value of your home, with the current attention towards renewable energy and the abundance of sunshine in Australia. A solar and battery combo system can be attractive for prospective buyers—especially those looking to reduce their environmental impact and electricity bills.
Research has shown that 77% of Australians think solar panels and battery storage add value to a property. With 57% of people say they would pay an extra $10,000 for a property with a solar system already installed. A property with a battery also could add more to this estimate. Additionally, homes with solar systems can sell up to 20% faster than those without.
However, the increase in value is based on the quality and number of panels and battery capacity installed.
Will my solar panels and battery increase my property value?
If you are considering purchasing a solar system but are unsure of the benefits that come with its installation, then we hope we can give you the information. When you decide to install a solar & battery system, one of the many benefits is its ability to increase your property value. Suppose you have been looking for ways to improve your property value and increase your home’s energy efficiency. Look no further because a solar/battery system may be your solution. With the current attention towards renewable energy and abundant sunshine in Australia, such a system seems like an obvious choice.
Therefore, in the current housing market, prospective buyers looking to reduce their environmental impact and electricity bills will pay more for a house with a quality PV and storage system.
People’s thoughts on solar and battery systems
Research into this topic has also shown specific numbers. One can expect this when selling a home. A survey by Origin Energy in 2018 highlighted how 77% of Australians think solar panels add value to a property. This survey also explored how much Australians would pay on top of the original house price. With 57% of people saying they would pay an extra $10,000 for a property with a solar system already installed. Finally, the survey also explored renters’ perspectives on homes with solar/battery systems, where the results showed that 55% of renters stated that they would pay an extra amount per week for a house with a solar system.
Furthermore, although it is not considered as ‘value’ in the current market, there is no guarantee that listing your property will mean it will sell. However, installing energy-efficient products like solar, batteries, and heat pumps can make the property sell faster.
Studies focusing on solar only have shown that homes with solar systems can sell up to 20% faster than those without. Considering this can still contribute to increasing your property’s value because when your home doesn’t sell, it causes stress and puts your life on pause.
Do not forget about rental properties
This is also the same idea for those trying to rent a house. Compared to a home without a solar system, of course, taking other factors into account. Homes with solar systems are more appealing for rent than those without, as they help reduce living expenses for tenants.
While Australia post-Covid is experiencing a housing shortage, a landlord might ask: “Why do I need to make my home more attractive?”. However, the reality is that this high demand might change in the future. Thus, enhancing the value of your property with the assistance of solar and batteries can be regarded as a smart move.
Is it guaranteed that my property value will increase?
In saying this, there is no guarantee that the minute you install solar, a battery, or an EV car charger or system, your property’s value will increase immediately. This is because the increase is based on the quality and number of panels you have installed, as well as the capacity of the battery and its functionality. Therefore, ensure you install a quality system and comprehend the various aspects of your system, enabling you to advertise it appropriately when you decide to put it on the market.
Given the current price rise of electricity and the likelihood of this still increasing, a solar system by itself or with a battery may add even more value to your property in the near future.
So how much extra could one expect for a top-quality system?
There are estimates that new home buyers may soon be willing to pay an extra $25,000 – $35,000 compared to a home that does not feature these additions.
Solar panels will also benefit landlords on rental properties because they would allow landlords to increase the rent a bit, as the solar system will save tenants serious money on their electricity bills.
Therefore, if a solar and battery system installation is on your mind, but you have been a bit hesitant, make sure you understand the other benefits besides energy savings, as many come along, such as the increase in property value.