Before you consider installing solar panels on your Cairns home, many local homeowners pause and wonder, do solar systems truly increase Cairns home’s values? Well, the answer is a big YES!
This post is here to tell you more about how solar panels increase your property’s value and whether investors are looking for residential properties in Cairns with solar power systems.
Armed with this information, you can then decide whether solar panels are a viable investment for your home.
By How Much Do Solar Panels Increase Cairns Home Values?
Most buyers, homeowners and appraisers concur that installing solar panels and solar power storage batteries increase the market value of a property in Cairns.
As a matter of fact, one study revealed that installation of solar systems boosts your home’s resale value by about $5,900 per kilowatt of solar energy installed, with another study estimating the increase at 4.1% of a property’s value.
Another study done some years back by Origin Energy showed increased resale value of about $5,900 per kilowatt of solar energy installed.
So by exactly how much do solar panels boost a home’s value. Let’s review a few averages:
|Home Solar System Size||Amount Solar Panels|
Increase Home Value*
We can therefore conclude that the above amounts are in line with the overall cost of a solar system which can just be the incentive you needed as the last nail on your decision to finally invest in solar energy.
Factors That Determine the Value-Add Amounts of Solar Panels
There are several factors that influence the total value-add of your solar panels. These include:
- Local solar installation prices: The overall cost of installing a new system in your location is also an important factor in the sense that if a buyer ends up saving money by buying a home that already has a solar system, then that makes your home more valuable.
- System output: From the chart above, the larger the solar system the more energy generated hence more added value.
- Geographic location: Different areas record varied electricity costs (and the higher the cost of electricity the greater the value from your solar panels). In addition, the geography highly influence the amount of sun exposure received and the social benefits gained as a result of installing solar panels.
- System age: Having an older solar panel means you must account for depreciation. Older systems don’t add much value to your home when selling it since there are higher chances that the buyer will have to repair or replace panel parts sooner than later.
- System replacement value: How costly or challenging it is to find parts of your solar system in case of replacement can also affect the added value of your solar system.
Are Buyers Searching for Properties with Solar Panels?
This is a common question among homeowners and it’s one that really varies based on one’s geographical location and particularly by the level of local solar power literacy.
In other words, buyers would not think of investing in a solar panel if they don’t even understand how solar systems work or the benefits that come with installing one.
Having said that, it’s worth noting that close to 80% of homebuyers consider energy efficiency as a top priority when buying a property; this is according to the survey conducted by Origin Energy in 2018.
Are Solar Panels a Viable Investment for Your Home?
As you consider investing in solar energy, it’s important that you review the ultimate impact on your property value by considering factors such as:
- Amount of sunlight your home receives throughout the year: Some properties are well-positioned for solar system installation. If your home is build at an optimal angle that allows for maximum harnessing of the sun’s energy, it is worthwhile to go solar.
- Total monthly utility bills: If you live in a location with high average electricity rates, you can expect a better return on your solar power investment.
- Financial incentives in your state: All Australians are exempted from state-based land tax for a primary residence. In addition, there are states and municipalities that offer added rebates or low-interest loans besides other financial incentives.
For most homeowners in Australia, the question of whether to install solar panels trickles down to cost. To check the cost of solar panel installation for your home, get a free, no-obligation solar quote by filling the form here.