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Many homeowners across Australia choose to install solar technology, such as Photovoltaic (PV) solar cells or evacuated tube solar hot water systems, as a way of bringing down their energy bills and reducing their carbon footprint. Despite sometimes costly installation fees, solar technology can significantly reduce your electricity usage and save you huge amounts on bills.
But could there be an additional benefit to solar technology? Some industry sources suggest that installing solar technology could also increase the value of your property.
Where does the increase come from?
Property experts would suggest two main reasons that the addition of solar technology could increase the resale value of your home: Firstly, it reduces the operating costs of the building, which makes it a more attractive long-term prospect for buyers. Secondly, it adds a capital asset to the property, thus increasing the net worth.
Exactly how much value is added will depend on various factors. The location of your home will have a big influence – certain locations tend to be more environmentally conscious than others, and this is reflected in buyers’ attitudes. The size and quality of the installation is also important, as will the age of the property, which indicates how energy efficient it’s likely to be.
In the US, the Department of Housing and Urban Development states that every US$1 reduction in annual electricity costs increases a home’s value by US$20.
Where’s the evidence?
When it comes to the housing market, speculation tends to dictate a lot of pricing and valuation, so it can be hard to quantify just how much solar technology increases the value of your home. But certain studies have given us a strong indication.
Daily Finance recently reported on a study from the US Department of Energy’s Lawrence Berkeley National Laboratory which examined home sales in eight states between 1999 and 2013 and found that homes with solar power systems commanded an average US$15,000 more on the market.
Meanwhile, Energy Sage reports on studies that show an increase in value between three and four per cent for houses with solar technology.
In Australia, a 2010 report from the Australian Bureau of Statistics suggested that increasing the energy rating of a house worth $365,000 by just half a star could increase its value by an average of $4,500.
While figures will vary from source to source, and more hard data would certainly be of benefit, the trend is clear – an increase in property value is yet another benefit to going solar.
Learn more about Apricus Solar Hot Water Systems or contact us to discuss your needs or organise a solar hot water system quote.