Can solar panels increase the value of your property?

The short answer to this question? Yes.

According to a 2018 survey published by Origin Energy, 77 per cent of Australian consumers agree that homes with solar panels are more valuable than similar homes without this feature.

Moreover, demand for solar panels in Australia has grown through the years as more and more people become climate-conscious. Buyers of solar panel systems in NSW and other parts of the country also appreciate the lower energy bills that come with solar energy use.

So, if you’ve ever asked yourself if solar panels are worth it in Australia, they most certainly are, especially if we use current housing trends as an indicator.

Rising demand for sustainable housing

There is actually a growing demand for sustainable housing, especially among Gen X and Millennial homebuyers.

Both homebuyer age groups have consistently cited the environment and climate change as two major issues they are concerned about. Buyers from these generational brackets don’t usually mind paying a premium for homes that have eco-friendly features, such as solar panels, rainwater collection systems, etc.

According to experts, the problem now is filling this gap where there is a high demand for sustainable housing with very little supply available.

Therefore, if you’re a homeowner thinking of ways to enhance the value of your property, going solar is the way to go – whether you have resale in mind or not. In fact, with just a 5kW system, you can drive up your property value by over $25,000. 

Rooftop solar panels – the basics

Solar roof panels are a specific type of solar panel designed for installation on building or house rooftops where they can collect photovoltaic (PV) or solar energy. The solar energy collected is then converted into electricity that can be used to power a home or be used as a method for heating water.

This means you’ll be generating your own power and can save a significant amount in electricity bills. While the initial outlay may seem costly, you would likely recoup your investment by the sixth year. 

Solar thermal versus solar PV

Solar thermal panels are another type of solar panel. These are generally more efficient in that they can heat up your hot water tank quickly. However, you only get hot water and can’t use the energy to power anything else in your home, unlike PV solar panels.

How much money do you save with solar panels in Australia?

An average Australian household using around 6000kW of electricity per year (around 16kW to 18kW per day) could save as much as $730 on their power bill annually or $3,650 over five years.

However, how much a household can actually save depends on certain factors such as location, the placement of the solar panels, family size and so on.

Government incentives in NSW

To encourage NSW residents to go solar, the NSW government has been offering incentives as solar rebates. These are substantial cash discounts deducted off the price of solar panels installed in NSW homes, with the average rebate or discount for a solar panel system amounting to $3,250.

However, the rebate depends on the size of the solar panel system you choose, with the 5kW and 6.6kW systems being the most popular system sizes in NSW.

In May, CommBank is about to introduce its ‘Green Loan’, that will allow CommBank customers to borrow up to $20,000 against their home loan over a 10-year period at a fixed interest rate of 0.99 per cent. According to a CommBank spokes person, most customers should see a saving on their energy bill of $500 a year, that will offset the cost of repaying the loan.

If you’re thinking of going solar to save on electricity, live sustainably or increase your property value, you can always talk to us. We can help with the basics and direct you to a reliable solar panel supplier and installer.

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