Putting a house on the property market is usually the first step to getting it sold. Selling a house is usually an uphill battle, and a very intense one at that. Emphasis on usually. If you have a property to sell, or if you’re planning on selling your property someday, you might want to consider installing solar panels. Solar panels are a sure shot way to improve your chances in a competitive property market. Solar PV systems usually hit the sweet spot for potential customers. Australian customers are more likely than not going to be installing solar panels on their roofs. A property that already has panels installed is going to be a lot more alluring because it just reduces the hassle of having to do it yourself.
Given Australia’s impressive rebates for solar panels, and given the Australian climate, which is very conducive for solar energy, most Australians will find a property with PV panels already installed to be an attractive prospect.
Solar Panels and Property Value: A Match Made in Heaven
Certain studies have shown that homes with solar panels usually sell twice as fast as homes without solar panels. On average, homes in Australia that have solar PV systems sell 20% faster than those without. Most Australian homeowners today are energy conscious. The Real Estate Survey of Australia found that 85% Australians believed that property value increased with solar panel installations. This belief is backed up by statistical evidence.
Studies have shown that a home’s value increases by $6000 for every 1Kw of solar energy installed. By this metric, a 5kw solar PV system can increase a home’s value by $29,000. On average, a property’s value increases by 3-4% because of solar panels. Couple this with a 20% increased chance of sale, and you have a winning combination.
System Size and Value: A Directly Proportional Relationship
A solar energy system’s size is what usually determines how much value it adds to a property. The larger the size, the higher the property value. If ever size mattered, it matters here. The more panels you install, the more the value of your property will increase. However, this does not mean that you should go overboard with installing panels. At one point you’re going to be getting diminishing returns. So, what’s the sweet spot? Just go with whatever size suits your needs and take the benefit of increased property value that comes with it. In the long run, it will be a worthy addition to your home. Furthermore, if the solar panels installed are sufficient to power your house at peak capacity, they will considerably increase your property’s value.
If you’re thinking about upscaling your property for the future, installing solar panels is a wise decision. Nonetheless, the benefits that solar panels provide your home will vary depending on a few factors.
Factor 1: Ownership Status
Do you own the panels installed on your roof?
Solar panel ownership status is a major determining factor for property valuation. A house where the solar panels are owned by the homeowner will sell much faster than a house with leased panels. If you do not own your panels, or if you haven’t finished paying for them, they will not benefit your home as much.
Furthermore, selling a home with leased solar panels will be more complicated than selling a house where you own the panels. Customers may not be familiar with how leases are transferred, and this adds a level of complexity to any sales negotiations. If you are considering solar panels to increase the value of your property, you may want to consider this point beforehand. It is best to be the owner of the panels before you put them up for sale.
Factor 2: Home Location
Location is another major determining factor. Is your home located in an area that gets a lot of sunlight? Or is your home located in an area with a lot of cloud cover? Solar panels installed in areas with a lot of sunlight exposure will be more beneficial when it comes to selling a house in contrast to a house in an area with little or less sunshine. Solar panels are more efficient in areas with high sunlight exposure, and so they add the most value to property in these areas.
If your home is in an area that does not have as much exposure, you may want to ask your solar panel provider for the best system size and the right positioning to maximise your output.
Factor 3: Solar Panel Warranty
If your panels have an extended warranty, then the price of your property will shoot upwards without question. Warranty is an excellent selling point when it comes to solar panels and improved property prices. Premium solar panels with extended warranties coupled with a decent solar system lifespan will prove to be an excellent source of value for your property.
Factor 4: Type of Solar Panels
There are many types of solar panels available in the market, including monocrystalline PERC, n-type, bifacial modules, polycrystalline, thin frame, and others. The type of module you choose, and its performance parameters will determine how much they improve your property’s value. The system that generates the most energy in the long run is the one that will prove to be the best for your property. Various system types have different output ratings. The higher the efficiency rating of a panel, the longer it will maintain optimal output under adverse conditions. Therefore, things like energy ratings and panel performance are best kept in mind when considering which solar panels to buy when buying for property value.
The rule of thumb again is the same. Unless you’re particularly aiming for maximum property value, just buy whatever is best suits your needs. Whatever works best for you will probably sit well with any prospective clients and more often than not, they’ll be happy with the addition. The only things to keep in mind are warranty duration and ownership.