Solar versus property value
Installing residential solar panels is a sound investment .A newly purchased solar system with efficient technology, more time on its warranty, and less need for maintenance may significantly add to property value. Solar energy takes the energy produced from the sun and converts it into the type of renewable energy that can power your house.
Major components of a solar system are:
- Solar panels – They are the integral part of any solar system. It captures the sunlight and convert it into Direct Current. It is always better to buy the panels from companies who have years of experience in selling and installing solar panels in Australia. They can help you get greater energy efficiency with better value.
- Solar inverters – A solar inverter then converts DC into AC (Alternate Current) – which then powers your home in real-time.
- Solar batteries – It helps to store the excess energy produced by the system.
- Digital meters – A digital meter measures how much electricity you’ve used and when. The meter sends this information back to your energy retailer meter. It’s a great solution for customers with meters that are difficult to access.
- Power grids – Any excess energy that you generate is pushed out to the grid. This energy is measured and calculated (feed-in tariff) to credit your account.
A new study from HP Australia and Planet Ark has found that over 90% of Australian consumers and businesses are concerned about environmental sustainability. Since solar energy is viewed so positively by most of the Australian public, it follows that this can be a selling point for the home. Research indicates that the wattage generated by a solar installation does not proportionally raise the value of a home. So, installing a massive solar array on your rooftop won’t necessarily equate to a higher resale value. A solar installation that sufficiently meets your energy needs is enough for you to recoup the price of your installation.
Statistics indicate that up to 19% of the Australian population now uses solar of some kind in their homes, either as a complete solar power unit or as a water heater. Solar installation has made a tremendous increase in the past 5 years. Since the price of electricity is expected to rise in the future, the advantages of having home solar power will become even more evident.
Solar power could be the best way to increase your property’s value. For a vast majority of people home is their major asset and they often look for ways that would increase the value of that property. Not all renovations or changes increase the value enough to cover the expense of getting it done. For example, there needs a good investment to install and maintain a pool. But when it comes to the selling market it does not always increase the value of the home because not everyone wants a pool. Elderly couples, young couples with toddlers, those who find it difficult to manage it will not prefer a house with a pool. So the pool fails to draw in customers of all categories. But with solar, it is just the other way round. Everyone needs electricity; if the cost of using electricity can be reduced by installing solar power, people will certainly view your home favourably when it’s offered for sale. Updating your house with a solar installation is definitely a sound investment versus other possible renovations.
The added property value from a solar energy system constitutes many factors and varies by market. The value added to a home from solar panels can vary based on the following:
- Region of the country
- Local price of electricity
- Solar installation prices
- System replacement value
- Environmentally conscious community
- Frequency of power outages
- Age of solar system
- Amount of energy generation
- State incentives
- Local understanding of solar technology and benefits
Having solar panels installed on a home can make it sell more quickly. A solar energy installation will help sell your home 20% faster than residences without solar panels. This too, is part of the value that solar power can add to your home and your life.
Even without selling the home, the advantages of having solar power installed are manifold. Feed-in tariffs are another great way that solar can help you save. One could save money on their bills by feeding any excess energy back to the grid. The credit you get on your electricity bill will depend on the amount you feedback to the grid. When years roll by, the savings made on power bills will redeem the cost of the installation. In short, one of the best ways to add value to the home is to install a solar system. It not only recoup the initial cost of their systems when they sell but also receive a premium that will increase their returns on their investment, thus benefitting their future savings.
Research and surveys indicate that the general public not only favour solar panels but actually prefer homes with solar installation to those without it. Renters are willing to pay extra rent for a home with solar panels. Therefore, landlords looking to increase the value of their rental homes can benefit from this trend. Since the renters prefer solar power, such homes are more likely to be rented out all the time, thus increasing the property value.
Installing solar panels on your home can increase its value, only if you own the system. If you install a solar panel system through a lease or PPA, you are essentially “renting” it from the third-party owner. Since you don’t own the system, it cannot be included in assessments of your home’s value. Most studies about solar and home values focus exclusively on owned solar energy systems.
The National Renewable Energy Laboratory notes that installing solar panels is viewed as an upgrade and homebuyers across the country are willing to pay a premium for the economic and environmental benefits of a solar home. Buyers consider monthly electric bills when purchasing a home. So when assessing the long-term financial value, they’re increasingly open to the premium of a solar-ready home. So one can expect to add a sizable percentage to property value.
Homeowners with a solar energy system who may want to sell should note that prospective buyers are interested in documentation showing that the installation was done properly from a reputable solar dealer, and proof that the system is reducing electric bills. So ensure that the solar installation is done by a reputed company.