By How Much Do Solar Panels Increase Home Value?

There are a bunch of articles around indicating installing a solar power system can substantially increase the value of a home. Be aware of devil in the detail of some of the eye-popping estimates.

Australia certainly lives up to the Lucky Country label when it comes to solar, enjoying some of the cheapest prices in the world. Quite a few claims pegging PV’s property value boosting power come from the USA, and the situation there is very different to Australia.

For example, SolarQuotes’ Australian Solar Price Index indicates the average price paid for a 10kW solar system in Australia in October was around $9,300 – $9,400 after rebates and including installation. In the USA in July, the same system cost around USD $20,300. This is approximately AUD $27,350 at current exchange rates and approaching triple the cost in Australia.

There are also undated estimates on a few local web sites indicating each kilowatt of solar installed can improve the value of an Australian home by up to $6,000. The original source of this figure isn’t clear, but perhaps it is based on quite old US information.

And speaking of age – how old the system is should also come into play.

While cost and value are different beasts, it’s hard to imagine a 10kW solar system – even a top quality installation – increasing the value of an Australian home by $58,000 – $60,000 these days. The same goes for a 12-year-old 1kW system pushing the sale price up around $6k.

In the case of the latter, the new owners might be looking to get that off the roof as soon as possible and replace it with a bigger system. To some potential buyers, a tiny old system may be seen as a liability.

The Good News

While the amount a solar power system can add to the value of a home is debatable and will be in the eye of the beholder (buyer), what isn’t are the benefits solar energy can bring to the current occupants.

If you’re considering installing a system and intending on keeping the property for a while, don’t fret too much about what it may add to home resale value. Focus on what it can do for you while you live there – and you can get an estimate on payback and savings by using this nifty solar calculator.

Consider Solar Quality

Whether you’re installing a system or looking to buy a home with panels already in place, it’s very important to consider installation quality,

While there’s little doubt a home with solar panels is perceived by many Australians to increase its value and could help it sell (maybe for significantly more), perhaps Australian home buyers are becoming savvier in understanding that not all solar installations are equal.

This goes beyond the brand of solar panels and solar inverter used. A system can have the best components, but an incompetent installer can really make a mess of things – and this can have electrical safety as well as system performance implications.

There are plenty of great solar installers in Australia, but also not-so-great ones. It wouldn’t be unreasonable to suggest the work of the latter is on many thousands of rooftops across the country. You don’t want that standard of installation on your house, and any potential negative effect on your property’s value is another good reason to choose wisely.

And if you’re in the market for a new residence, pick up some tips on buying a home with solar panels already installed – this advice could save some headaches and heartache down the track.

Original Source: https://www.solarquotes.com.au/blog/solar-home-value-mb2226/