Do solar panels increase house value? 85 percent of Aussies think so

 

for sale sign and solar panels

A recent study shows that solar really does increase the value of your home.

Australians overwhelmingly believe solar panels increase house value, according to joint research carried out earlier this year by Origin Energy and RealEstate.com.au and their optimism is backed by a number of surveys.

The Origin/RealEstate research found that 85 percent of respondents believe that having solar panels adds value to the home. Having a PV system rated the highest, leading energy efficient appliances, solar hot water and water tanks.

“This research demonstrates that solar panels could provide a real boost for homeowners if they decide to sell,” said Phil Craig, Executive General Manager of Corporate Affairs at Origin Energy. “Origin want to encourage Australians to start recognising their empty roof space could be an asset,” he added.

REA Group Chief Product Officer Henry Ruiz described having solar panels as “… a valuable investment” for homeowners.

The high number of respondents who support solar energy as a key factor in boosting a house’s market value is backed by a number of overseas studies. Evidence gathered shows that solar panels increase house values and that homeowners looking to improve the value of their property are starting to appreciate this.

A study published by the US-based National Bureau of Economic Research, titled “Understanding the Solar Home Price Premium: Electricity Generation and ‘Green’ Social Status,” found that solar panels added a $US20,000 premium to house sales.

The study examined house sales in San Diego and Sacramento from 2003 to 2010.

This means the homeowner stood to receive almost the full cost of the installation cost of the system upon sale. This of course after benefiting from reduced energy bills and lowered carbon footprint during occupancy.

The 2015 ”Appraising into the Sun: Six-State Solar Home Paired-Sales Analysis”, relied on surveys of appraisers across the USA. The analysis backs up previous research conducted in 2013 by the Berkeley Lab which showed buyers were willing to pay up a premium for houses that had a solar panel array.

Homeowners looking to sell know the feeling of doing as much as possible to increase the house’s value before putting in on the market. From painting, to cleaning out rubbish, to landscaping and generally tidying up. But perhaps, as Mr Craig suggests, it’s time to look to the roof to increase value to the house as well as being the conduit for a clean — and competitively priced — source of energy.

So instead of looking at the walls, the garden, the exterior or the gutters, perhaps homeowners should look at solar panels as amongst the first items on the list to improve the value. How much do you think solar panels increase house value?

Comments

  1. john nielsen says

    I don’t think solar panels will increase house values in Aus. To sell a house you will have to add the cost of your installation and then realize that the fit is not transferable to the purchaser. so while you may get 44 cents kWh the new owner might only get 6 cents. In the USA people are encouraged to install solar, here in AUS we are denied solar. Max installation 2 kW systems, and 6 cents fit,,, what a joke.
    john nielsen, Silkwood.

  2. Solar panels increase the value of your home but not at a premium.
    I would put the increase in value at slightly below what i paid in the same year.
    Overtime this may increase but the lure of saving a $1,000 a year for an extra say $5,000 to 6,000 is tempting, so if they keep the house for longer they not only save more on their power but can also sell back the solar system for the extra they paid for the house.

  3. Why are ppl still talking about the feed in tariff. That is or will diminish within 2 or 3 yrs. Storage is the word. That is where you will save real money. Forget import into the net, that is for door to door sales people

  4. Yes Minister says

    I didn’t install a PV system with a view to increasing resale value because I have no intention of ever selling the property. Ultimately I’ll leave the place in a cardbox box because my Will requires my executors to take all possible stems to force the government to pay any costs associated with disposal of my remains. In the meanwhile I’m earning a usable income from my 76 panels and intend doing so until the FiT expires in 2028. That said, I’ll probably use some of the green electrons before then to fuel a battery-electric vehicle although its more cost-effective to use dirty 18c off-peak electrons than green 52c electrons.

  5. Mandatory home energy & water disclosure at the point of sale would help clarify any relationship between clean technologies adopted in the home and any marginal value creation. You know the old saying – “you can’t manage what you can’t measure”.

  6. Support for solar power coming from Origin Energy is some sort of sick joke. It is their version of green wash. Causing the suicide of a farmer in Queensland is one thing, being two faced truth twisters is some different.

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