There is no doubt that solar panels can save you from ‘power bill shock’ but did you know that their financial advantages extend beyond protecting you from rising energy costs? Solar systems increase your property’s market appeal and market value too.
We have discussed the massive impact solar power can have on Australian homes before. In this article, we do not want to talk about how much you can save but how much you can earn thanks to the addition of a solar solution.
What do we mean when we say ‘how much you can earn’? Well, homes with solar power installed have a higher market value than homes without. As a homeowner, you would know that your home is the most significant asset you will own. Doesn’t it make sense that you would want to increase the market value of that asset to maximise your returns?
How will solar systems earn money for you? Let’s talk figures…
A study conducted by realestate.com.au and Origin found that 85% of Australians said they would pay a higher price for a property with solar power. While 20% of renters said they would pay an additional $10 a week to live in a home with solar installed. While an extra $10 doesn’t sound like a massive return, it can equal more than $5,000 over a decade. That is money you would not otherwise have.
But it isn’t just the increase in market value of your property, according to Phil Craig (Executive General Manager Corporate Affairs at Origin), “if you’re looking to sell or lease your property, [adding solar panels is] a really simple measure you can take to gain a competitive edge in the market.”
How will solar systems increase your competitive edge and decrease the time your property spends on the market?
When buyers (or renters) are looking at a potential new home they look at two key things:
- How much am I going to have to spend on this home to improve it?
- How ‘future-proof’ is this property?
Let’s first look at #1: “How much am I going to have to spend on this home to improve it?”
We could discuss how solar panels literally pay you back ten times over, but we already have! Read all about payback time and savings here.
Now for #2: “How future-proof is this property?”
No one wants to buy or rent a home that is ridden with termites, requiring a new septic system in 6 months or demanding some other non-negotiable upgrade in the future. Whether you are an environmental warrior or not, clean energy is the way of the future. And your potential buyer or renter would likely prefer to be ahead of the clean energy game then have a looming ‘to do’ item on their list.
Eco-friendliness is becoming such an integral focus in Australia. Heightened by the signing of the Paris Climate Agreement, people are searching more and more for the chance to improve their carbon footprint (and save the $$$). Eco-friendliness has become such a focus in home hunting that realestate.com.au now has an ‘eco-friendly’ option in their ‘refine search’ options. This means home buyers can search for ‘eco-friendly’ features just as they would search for the number of bedrooms or price when looking for a new home.
In fact, in an oversaturated housing market, the difference between your house and the house down the road may just be your solar panels.
Want to increase the value of your property and make your home more persuasive in the market? Sounds like you need to get in touch with us!