Solar panels are an excellent source of renewable energy and a great method to reduce your recurring electrical costs. However, they require an initial heavy investment, so if you’re considering buying a solar panel, you might be pondering if they’re worth the tens of thousands of dollars that you are going to invest.
The majority of real estate brokers and house builders will inform you that solar-powered homes frequently outperform other options on the market. Homeowners are becoming more and more interested in energy-efficient homes, and they are prepared to spend more in exchange for lower utility bills each month. Even though the majority of scientists concur that solar panels systems are good for the environment, many homeowners still ponder the following: Will solar panels be good for my wallet and improve the value of my house?
The typical residential solar energy system will last more than 25 years before needing to be replaced, providing substantial long-term savings. How does that affect home value, then? Let us find out!
Adding value to your homes with solar panels in Australia
Solar panels seem like a no-brainer given the current focus on green energy sources and the profusion of sunny days we experience in Australia. Many Australians are considering investing in renewable energy because it is a hot subject internationally. Additionally, there is a high level of public knowledge of solar energy and how solar panels function, which is advantageous when using the feature to market your property.
Australians think that solar-powered homes are more value than comparable dwellings without it. According to our 2018* poll of 1,005 Australians in the 18–79 age range from all States and Territories, 77% of Australians believe a solar-powered home is more desirable than one that uses conventional energy sources.
60% of homeowners would spend at least that much more for a home with solar power alone, while 57% of homeowners said they would pay up to $10,000 more for a property with solar power.
With 55% of renters stating they would be willing to pay up to $10 a week more in rent for a property with solar, the news isn’t only excellent for owner-occupiers.
The survey also examined the use of solar energy in Australian homes, and it found that although just 20% of individuals presently have solar panels installed, 57% intend to do so within the next five years.
What is the consumption value of solar PV modules?
The environmental advantages of using an environmentally friendly energy source are referred to as consumption value.
A solar panel system can increase the value of your house in many ways, depending on a variety of variables. The most notable examples include:
1. Your home’s location Installations in solar markets with higher activity can yield a higher return on investment than equivalent installations in markets with less activity.
2. The size of the installation – The quantity and calibre of solar panels you have installed directly affects how much your property’s worth will rise. The worth of your home will rise in direct proportion to the quantity and calibre of your possessions.
3. The worth of your home – Installing a solar panel system increases the property value of bigger, more expensive properties.
Important: If you plan to sell your property soon or want to gradually increase its value, solar panels can be a suitable choice for you. Before making a choice, discuss it with your real estate agent to ascertain whether the addition will make your home stand out from the competition and raise its market value.
Things to keep in mind while switching to solar
Your home’s value may go up, your energy costs could go down, and you could do your part to stop global warming by installing solar panels. However, there are a number of things you may take into account to determine your overall return on investment before you purchase and install solar panels:
Location – The position of your home will have a significant impact on how much sunshine reaches your roof and, consequently, how much solar power your panels can generate. More sun roughly equates to more power.
Consumption of energy – Each home uses a distinct quantity of energy, and this amount frequently varies from month to month. The number of rooms in your home, the size of your family, and the size of your house all affect how much power you use and pay for each month. The quantity of equipment you use at home might also have a substantial impact on your utility costs.