Solar panels increase home value in Australia by an average of 2.50%, based on analysis of 1,007 property sales across 7 major cities in Australia. The study found that homes with solar consistently sold for more than comparable properties without solar, with the largest increases observed in Melbourne, Adelaide, and the Gold Coast.
- Based on 1,007 property sales
- Covers 7 major Australian cities
- Up to +6.91% increase observed
- Data period: Jan 1 2025, to Dec 31 2025
| City | No Solar | With Solar | Increase % |
|---|---|---|---|
| Sydney | $1,575,595 | $1,598,439 | +1.43% |
| Melbourne | $1,541,392 | $1,601,482 | +3.71% |
| Brisbane | $1,592,354 | $1,623,406 | +1.91% |
| Canberra | $1,646,841 | $1,652,419 | +0.34% |
| Adelaide | $1,623,993 | $1,717,141 | +5.42% |
| Perth | $1,618,978 | $1,625,310 | +0.39% |
| Gold Coast | $1,699,600 | $1,825,714 | +6.91% |
How much value does solar add to a home in Australia?
The data shows the value added varies depending on the city, with additional value added ranging from $6,300 to $126,000.
Across all cities analysed, homes with solar achieved higher sale prices, although the size of the premium varies significantly.
Key findings:
- Gold Coast recorded the highest increase at 6.91%
- Adelaide followed with 5.42%
- Melbourne showed moderate growth at 3.71%
- Sydney and Brisbane delivered consistent gains of around 1–2%
- Canberra and Perth showed smaller increases under 0.5%
These results show that solar value is not fixed and is heavily influenced by local demand, most likely electricity costs, and buyer expectations.
Solar home value increase by city
Solar increases home value in every major Australian city analysed, but the size of the premium varies significantly depending on location.
The data shows that solar consistently delivers a price premium, but the magnitude depends on buyer demand, electricity prices, and expectations within each market.
Higher-demand markets such as the Gold Coast and Adelaide show stronger uplifts, while more balanced markets show smaller but still positive gains.
Why is there such a large variation in solar value by city?
The variation in solar premiums between cities is likely driven by a combination of local incentives, buyer demand, and perceived value.
One possible factor is the availability of state and local solar incentives.
In markets where solar systems are heavily subsidised through rebates, interest-free loans, or low upfront costs, the perceived value of solar may be lower. If buyers know a system can be installed at a significantly reduced cost, they may be less willing to pay a premium for it in the purchase price.
By contrast, in markets where solar relies primarily on federal incentives and requires a higher upfront investment, solar may carry a stronger perceived value and command a higher resale premium.
This could help explain why cities such as Adelaide and the Gold Coast show stronger uplifts, while cities with more accessible incentive schemes show smaller differences.
However, incentives alone do not fully explain the variation.
Other contributing factors likely include:
- Local electricity prices
- Buyer demographics and demand for energy efficiency
- Market expectations around solar as a standard feature
Overall, the data suggests that solar value is not determined by a single factor, but by how cost, demand, and perception interact within each local market.
Why solar increases home value
Solar increases home value primarily because buyers perceive solar-equipped homes as more valuable, and this perception is supported by real sales data.
Buyer perception plays a direct role in pricing, influencing how much buyers are willing to pay before considering the underlying financial benefits.
This perception is reinforced by three key factors:
Lower electricity costs – Buyers factor in long-term energy savings when assessing value, increasing their willingness to pay upfront.
Energy efficiency and future-proofing – Solar signals a more efficient, lower-cost home, particularly as electricity prices rise.
Market demand – Solar is increasingly expected in many markets, shifting from an optional upgrade to a standard feature.
Together, these factors align perception with reality, resulting in higher sale prices for homes with solar.
Where solar adds the most value
Solar adds the most value in markets where the price difference between homes with and without solar is more pronounced, particularly on the Gold Coast and in Adelaide.
In these markets:
- Buyers place a higher value on reducing running costs
- Energy efficiency is a stronger selling point
- Solar is more consistently reflected in sale prices
By contrast, smaller increases in Canberra, Perth, and to a lesser extent Sydney and Brisbane suggest a weaker signal at the city level.
In these markets:
- The price difference between homes with and without solar is relatively small
- Results are more sensitive to sample size and individual property variation
- A small number of additional sales could materially shift the outcome
This means that while the national trend is clear, the impact of solar on value is less consistent at a city-by-city level in some markets.
Study methodology
This analysis used property sales data sourced from domain.com.au, focusing on residential homes sold in 2025 across major Australian cities.
To isolate the impact of solar as accurately as possible, strict controls were applied:
- Only single-storey homes were included
- Only three-bedroom properties were analysed
- Suburbs were selected within similar price ranges
- Extreme outliers were removed (both unusually low and high-value homes)
- Most properties fell within a typical Australian range of approximately $1M to $2M
These constraints were designed to minimise external factors such as land size, luxury features, or property scale, ensuring a more accurate comparison between homes with and without solar.
Limitations of the data
While the study controls for key variables, some factors may still influence the results, including system size, system age, and overall property condition.
For example:
- Larger or newer systems may carry a higher perceived value
- Renovated homes may influence pricing beyond solar alone
- Micro-location differences can still affect outcomes
As a result, the findings should be interpreted as strong market-level trends rather than exact guarantees for every proper
Is installing solar worth it for resale value?
Based on the data and study results, it is financially worth installing solar. The cities with the smallest bump in resale value still covered the cost of installation, while others far exceeded it.
In many cases, solar:
- Recovers a significant portion of installation cost
- Makes a property more attractive to buyers
- Reduces time on market
However, the financial return depends on location, system quality, and how buyers in that market perceive energy savings.
Solar should be viewed as both a cost-saving upgrade and a resale value enhancer rather than purely an investment play.
