Research from property marketplace Domain shows that Victorians are willing to pay an astounding 24 per cent more for energy efficient homes that are powered by solar. The actual price premium for houses with rooftop solar and an excellent energy efficiency rating is $125,000 on average, compared to homes with no solar and a poor energy efficiency rating.
Solar homes sell faster
The “Domain Sustainability in Property Report” published in June 2022 provides evidence that solar homes with energy efficiency features sell faster and command a significant price premium.
For homeowners looking to sell their property at the best possible price – and as quickly as possible – a solar power system can make all the difference.
According to Domain chief of research and economics Nicola Powell, “You can sell for a price premium, sell quicker, get more buyer demand and save money in the long run on the running costs of buying a home.”
What buyers want
The Domain report states that a rooftop solar panel system, a home battery, an EV charger and energy efficient electric appliances for hot water and space heating are the features that buyers are looking for – and willing to pay more for. This is particularly true at the premium end of the market.
The report also states that buyers’ priorities are shifting as home working becomes the norm and cost of living pressures increase.
Protection from spiralling energy costs is top-of-mind for many home buyers according to the report. And that’s driving demand for homes that are cheap to run, environmentally sustainable and comfortable to live in.
Protection from volatile energy prices
“This fascinating report is in line with what we’re hearing from our customers,” said Specialized Solar & Electrical Managing Director, Anthony Igmen.
“Nobody wants to be at the mercy of money-gouging electricity retailers or volatile global energy markets. That desire for guaranteed low-cost energy is what’s driving solar and battery uptake in a big way.”
Better off with solar
Over 3 million Australian households have rooftop solar making Australia the #1 world leader for solar uptake on a per capita basis.
Household solar battery installations are also starting to take off with over 50,000 home batteries installed in 2022.
“Battery storage is looking like an increasingly better financial proposition, particularly when looming energy price rises are considered,” said Anthony Igmen.
“Factor in the uplift in the resale value of your home resulting from a solar system, and the economic case for solar looks to be pretty much bullet-proof.”
“A price premium of 24 per cent on most Melbourne homes would pay for a quality solar battery storage system and a bunch of energy efficient appliances with bucket loads of cash to spare”.
Wake-up call
For anyone sitting on the fence when it comes to solar and storage, this report is a wake-up call.
It shows where the housing market is headed. And that’s a massive growth in demand for sustainable, solar-powered energy efficient homes that are cheap to run and comfortable to live in.
In most cases, solar panels pay for themselves within 5 years. Solar batteries provide guaranteed protection from double-digit energy price hikes. Now, with this report demonstrating that solar can contribute to a 24 per cent uplift in the resale value of the typical Australian home, the case for solar is pretty much irrefutable.
And we haven’t even mentioned the environmental benefits!
Get in touch
If you’re wondering whether installing solar makes sense for your home, contact us for expert advice from one of our solar consultants.
