Climate change is becoming an ever-prevalent concern in today’s society. This concern is leading some home owners to invest in solar panels. But, do solar panels increase property value?
Do solar panels increase property value?
A realestate.com.au survey found that 85% of people believed that solar panels added value to a property with 78 per cent saying that it could be as much as up to $10,000. This figure will depend on the system installed. Generally, the more panels installed, the greater the increase on the property’s value. Some estimates put the increased value of a 5kw system at approximately $29,000.
Those who paid more than $10,000 for their panels would argue that this is insignificant but with prices now as low as $3,245 for a 5Kw system (price quoted from Solar Smart), this can be worthwhile and means that there is precedent that solar panels increase property value.
The survey also revealed that 79% of those looking to buy a home also seek out energy efficient appliances to save money, while 78% looked for a solar hot water system. 70% thought a water tank added value along with water saving fixtures at 47%.
Will tenants pay more for a property with solar panels?
With the cost of living pressures increasing living a cleaner, greener, cheaper lifestyle is the way of the future. An increase in protests by climate change activities has sparked renewed awareness of the carbon footprint we are leaving. This is leading consumers and tenants to review their carbon footprint. This is especially prevalent among the younger generation. Rental properties with solar panels is an untapped market that is increasing in demand. Tenants want to know they are changing the future and saving money at the same time.
A realestate.com.au survey found that 40% of renters said that they would pay up to $10 a week more for a house with solar panels to help them reduce costs. Another way in which solar panels increase property value.
More and more people are turning towards renewable sources of energy, and solar power stand out as the leading provider. Solar panels offer renters and home owners a point of difference. Not only are they a clean source of energy, they are also quite affordable. Ultimately saving you, and your tenants, money in the long run.
With only one in four Queensland households currently using solar energy this could be the edge you are looking for in the competitive property market.
Solar panels may prove to be a good investment if you’re an investor or you’re looking to increase property value. Saving on your electricity bills is also an added advantage.
If you are looking at selling or renting your home I wouldn’t rush out and add solar panels to the roof in the hope that it will get you extra money, but it is nice to know that if you have invested the money into solar panels, or any energy saving device, that buyers and renters do believe that this will add value to your property.
For further information regarding what tenants are looking for in a rental visit www.postionone.com.au or give us a call on (07) 3843 4511.