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Do Solar Panels Increase Home Value?

Posted 21 Sep '17
Do Solar Panels Increase Home Value?

Do Solar Panels Increase Home Value?

With more than 1.5 million Australian households generating at least a portion of their electricity from solar energy, it is safe to say that the solar energy market is booming. If you are looking to invest in a complex system such as Solar Panels, it is only natural that you want to know how this investment will impact the value of your property, should you someday decide to sell it. The short answer to this question is a positive one – installing solar panels will increase your property value significantly. Read on for a detailed breakdown of the various benefits and conditions that go into the final value of the property, as well as the savings you stand to make.

The data from studies done among Australians seems to be even more encouraging. In a study conducted jointly by the website realestate.com.au and Origin Energy, it was found that as many as 85% of the respondents would agree to pay more for a home which had solar panels installed. Furthermore, 75% of prospective renters stated that they would be willing to pay more in rent, as much as $10 per week extra, for a home with solar energy. As with any investment, however, there are many factors at play which determine the resale value of a solar panel system. These factors include the power level of the system, the location of the home, the size of the roof and its orientation, the shading, and the cost of the system itself.

Let us take a look at the power level of the system first. Naturally enough, a more powerful system adds significantly more value to a property than a weaker one. That is because high-powered systems can provide a level of self-sufficiency which weaker systems cannot. With a powerful enough system, you can stop paying the electricity bills altogether, whereas a weaker system will only be able to provide a portion of your electricity needs. That is why a high-powered system leaves a better impression on a prospective buyer, so if you are looking to install solar panels, it is better to go for a 5 kW system, rather than a more modest, but cheaper 1.5 kW system.

When the location of the home is concerned, we are not necessarily talking about the property value associated with a good location in a populous city, but also the degree of exposure of the home to the sun. If the sun shines for more hours during the day, you are going to be able to produce more electricity with your solar panels, with more of a payoff in the long run. However, the location is also important as a social factor which goes into the price of a property. If you are living in what is considered to be a relatively ‘liberal’ neighborhood, prospective buyers may be more likely to be willing to pay more for a house with solar panels, as they may place more importance on ecological issues than the average buyer.

The size of the roof and its orientation are also an obvious, but important variable. A small roof will be able to fit fewer solar panels, and the total surface area for the production of electricity will decrease. If your roof is pointed the wrong way, away from the sun, this will also greatly impact the amount of energy you are able to generate. That is why large, North-facing roofs are the best for optimal electricity production. Another related factor to consider is whether your roof is shaded or obscured by trees or other buildings, which naturally reduces the amount of electricity that can be produced.

The cost of the system itself is naturally related to its power level, as well as its efficiency at using the power of the sun. Indeed, in Brisbane, a sustainable home with the appropriate power level has been found to fetch a median $616,000, as much as 11.5 per cent more on the market than the median home price of $545,000. More expensive systems yield a bigger increase in the price of a piece of real estate, but the resale value of the system itself is not the only consideration you should have in mind. Some estimates show that the right system can provide as much as a 200% return on investment, through savings on energy over the years, and the resale value itself.

It is not only the price of the home that gets boosted, but also its attractiveness to prospective buyers. Homes equipped with solar panels simply sell more quickly than others, because the panels have that wow factor that prospective buyers are looking for. As they say, time is money!

To conclude, there are, without a shadow of a doubt, clear and tangible benefits to installing solar panels in your home, and these can be seen both in the resale value of the home, as well as in the massive savings you stand do make on electricity bills. Your house will also be more likely to sell quicker, as the solar panels are a characteristic that will set your property apart from so many others in the eyes of prospective buyers. If you are smart about choosing your system, its power level, as well as its cost, you stand to make a very large profit indeed from an investment into solar power, on top of helping create a more sustainable network for energy production. Just make sure your home gets ample amounts of sun, and is not shaded by other buildings, and you are good to go!

If you are interested in switching to solar, give us a call today on 1300446374 or go to this link for more info http://www.iinergy.com.au/solar/

If you are interested in switching to solar, give us a call on 1300 446 374 or click on the link below to submit your details.

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