If you’re thinking about upgrading your home to embrace greener power solutions, installing solar panels in Australia can increase your property’s value by up to 4%, depending on the size and location of your system. In addition, the energy savings over the years can be massive. For example, a standard home could see a value increase of between $10,000 and $25,000.
For homeowners, you can enjoy the utility bill savings, and when it comes time to sell, you can reap the benefits of an increased home value. Not to mention that prospective buyers are looking for more energy-efficient homes, and a solar panel installation is an enticing addition.
| Home Value | 4% Solar Panel Added Value |
| $300,000 | $12,000 |
| $600,000 | $24,000 |
| $1,000,000 | $40,000 |
| $1,500,000 | $60,000 |
| $2,000,000 | $80,000 |
Table of contents
How Solar Panels Affect Property Value in Australia
From adding a garden shed and refreshing your landscaping to installing a swimming pool or solar panels, the right upgrades can boost your property’s value by up to 4%.
What Does The Data Show?
Australia has one of the highest uptakes in solar panel installation in the world, and data suggests that prospective buyers are willing to pay around $10,000 more to purchase a home featuring solar. Additionally, renters have suggested they would pay more rent for a home equipped with solar panels.
Do Solar Panels Help You Sell Faster?
The stats are in, and the experts believe that homes with solar sell up to 20% faster than those without. This is partly due to Australia’s strong demand for energy-efficient homes and rising electricity costs.
Are Buyers Actively Searching For Homes That Are Solar-Ready?
Yes, according to a survey from Origin Energy, 77% of Australians believe solar panels increase property value, and 57% of potential buyers would pay more for a home with solar. In addition, 55% of renters would pay extra to rent a property equipped with solar.
Key Factors That Influence Value Uplift
| Factor | Value Increase | Source/Note |
| 5kW owned system | $29,000 | Energy Matters |
| Leased system | $0 | There are complexities to leasing systems; you should look into the details before signing on the dotted lines if you have plans to sell your property in the next few years. |
| New system vs old system | A new system has a higher value impact due to the warranty and appearance, but it will depend on a range of factors. | A 25-year warranty on a new system will help ease any concerns potential buyers have. |
| Energy provided | The more energy efficient the solution, the more prospective buyers are willing to pay. | Discuss your options with a solar retailer. |
| Incentives/rebates | There are many government incentives and rebates available for homeowners installing solar panel systems. | SRES, tax credits |
Â
When Solar Panels May Not Increase Value
Though solar is viewed positively in Australia, there are situations where solar panels might not increase your value. The first and most obvious situation is where the system is either outdated, poorly installed, or leased. In the latter situation, a buyer may be forced into taking over the existing homeowner’s contract, which isn’t ideal.Â
Another potential issue is shared roof ownership. While tenants often view solar panels as a win, many investors hesitate when faced with shared roofing and installations.
How to Estimate ROI
Energy savings + home type + suburb = value gain estimate
Best Practices For Adding Solar Panels
- Always select a Tier 1 system with a comprehensive manufacturer's warranty.
- Always use an installer who offers an additional warranty for workmanship.
- Invest in battery storage whenever possible.
- Always keep receipts of installation and documentation around purchase, installation, and maintenance.
- Always ensure solar is mentioned in the property listing's headline.
Summing Up
Ultimately, results vary depending on the location and solar panel system you select. However, most Australian homes will benefit from going solar, both in the short term and the long term. If you’re ready to boost your home’s property value, the next step is to get fast, free, no-obligation quotes from trusted installers near you.
If you’re interested in going solar, partner with GoSolarQuotes to find the best prices from local installers in your area.
