Owning a home is one of the notable investments you’ll ever make. And most homeowners look forward to building up equity and seeing their property value increase over time.
The rate at which your property value increases will depend on numerous factors, such as local demand and the location of your property. However, you can also improve your property’s value over time by making changes and upgrades that increase its appeal and gain a higher selling price.
One such upgrade you can make is installing a solar energy system. In this article, we’re sharing how adopting a solar energy system improves the value of your home. So, read on.
Understanding A Solar Energy System
Before diving into how solar energy increases your home value, let’s first understand what a solar energy system is.
The solar energy system mainly features solar panels with photovoltaic cells that capture the sun’s energy. A solar inverter then processes the captured solar energy, transforming direct current (DC) to alternating current (AC) to power home appliances.
Most solar energy systems may also consist of battery storage that allows you to store captured solar energy for later use.
Do Solar Energy Increases Your Home Value?
Yes. Solar panels in your home can increase your home’s overall value. Reports show that the more solar panels you have on your roof, the higher the value of your home will be. One article mentioned that for each kilowatt of solar panels installed, home value increases by more than AUD$8,000. The same article shared that the average home value increase ranges from AUD$33,000-AUD$82,000 for 4kW-10kW solar system sizes, respectively.
That said, each property is different. And the increase in your home value will depend on numerous factors, including:
- The size of the solar energy system
- Location of your home
- System output
- The age of the solar energy system
- Cost of solar panel installation in your area
- System replacement value
How Solar Energy Systems Increase Your Home Value?
By now, you know that solar panels on your roof can indeed increase your home value. But how exactly does it help improve your home value? By providing numerous benefits and functionalities that make your home more appealing and desirable to the eyes of buyers. Here are some benefits of solar energy systems that make them a wise addition to your property.
1. Eco-Friendly Living
As more people become more conscious about their negative impact on the world, solar energy system installation can make your home more appealing to eco-conscious buyers.
As one of the dominant green energy sources today, solar energy has a less negative impact on the environment. It doesn’t pollute your surroundings nor produce greenhouse gases that worsen global warming. It uses a non-depleting energy source and reduces your reliance on fossil fuels to power your home.
2. Energy-Efficiency
One of the main reasons solar systems are highly desirable for homebuyers and increase the overall value of your home is that it helps in saving on energy bills. With the increasing cost of living and electricity, homeowners and homebuyers alike want a home that is energy-efficient and provides them with significant cost savings.
Sunlight is free. And by installing a residential solar energy system, you can take advantage of this free electricity and reduce your reliance on electric grids. As a result, you can minimize (or eliminate) your energy consumption costs. If you have the budget, you can install a comprehensive solar energy system that can power your entire home day and night, as long as you have full access to the sun.
While the upfront cost of installing a solar system may seem too expensive for most homeowners, you can’t deny the long-term savings that you’ll enjoy from this investment. Plus, it’s also helpful to know that the Australian government offers incentives and discounts to help and support the cost of residential solar installation. So, it should be a win-win for you.
3. Provides Reliable Energy And Potential For Electric Kickbacks
The reliability of solar energy also makes your home more appealing and allows it to command a higher price in the real estate market.
By installing a solar energy system, you don’t have to depend much on traditional power sources, which are sometimes unreliable. Solar panels on your roof mean you can generate electricity that will never run out of power as long as the sun shines brightly.
It means you’ll have reliable and unlimited power without the annoying power outages. Plus, it may also help you gain kickbacks from electricity companies by selling excess solar power that your panels captured and stored.
Takeaway
As you can see, a solar energy system is one of the most significant investments you can make today. Whether you want to build home equity or plan to sell soon, equipping it with solar power can provide numerous benefits, all of which contribute to a greater appeal and thus higher overall value.