There is no doubt installing solar can save you big bucks on your electricity bills, but did you know it can also positively influence your home’s value? Installing a good quality solar power system is a simple thing you can do to give your property a competitive edge – particularly as more people are becoming environmentally aware.
How much value does solar add to your home?
While solar may not be the first priority when eyeing off a new home, it can be an added bonus. Especially as more people are wanting homes with sustainable features. Energy efficient appliances and water savings features were also sought after and were seen as adding value, according to research by realestate.com.au.
It’s hard to calculate exactly how solar impacts a home’s value, but most experts agree that it is likely to increase the selling price, according to Origin. In fact, realestate.com.au and Origin Energy did a survey in 2018 that found 3/4 of renters would pay more rent to live in a property with solar energy.
“I don’t think it’s massive – it’s not like adding an ensuite or doing up a kitchen – but I think it’s one of those things that people like…”– Nerida Conisbee (Economist at realestate.com.au)
Think of it this way, if you had two properties, both were $500,000 and had the same features. If one had solar and the other didn’t, most people are going to choose the property with solar. Don’t get me wrong, some people don’t like solar – maybe they’ve had a bad experience in the past or don’t like the aesthetics – but most would find paying less electricity appealing.
“If you’re looking to sell or lease your property, it’s a really simple measure you can take to gain a competitive edge in the market.” – Henry Ruiz (REA Group Chief Product Officer)
Another advantage of solar systems is they are low maintenance. Apart from cleaning the panels occasionally, they don’t need a lot of attention. Compared to other things like a swimming pool, a solar system doesn’t require nearly as much time, money and effort to maintain.
Questions to ask when buying a home with solar
How old is the system? If the system is more than 5-10 years old, there may be some costs for maintenance or inverter replacement in the coming years.
What is the system size? The system size determines how much money the system could save you.
What are the products and are they still under warranty? Not all systems are the same. You don’t want to inherit a system that will give you nothing but trouble. Good quality products will not only perform better, but they will properly last longer which will save you money down the track.
Have the panels been regularly cleaned and the system maintained? A clean, well-maintained system will perform better in most cases.
Who did the original install? If something were to go wrong, you need to know who is best to contact.
We recommend having a full pre-purchase solar and electrical inspection carried out, to avoid any nasty surprises.
What is the payback period for a solar system?
Unfortunately, there isn’t a black & white answer – it’s something that changes from household to household. How long it will take for your system to pay for itself will depend on:
How much total power the owner uses
How much of that power is used through the daytime
The higher their total usage (up to a certain limit), the more they’ll save.
The higher their daytime usage, the more they’ll save.
As an indication, generally, the payback period is between 6-10 years, depending on the 2 factors above.
FOR EXAMPLE A household whose usage is $200 a quarter (which roughly equals a $300 bill) will not save as much (with the same people living in the house, with the same appliances, with the same solar system size) as a household whose usage is $500 a quarter ($600 bill).
This is because with a 6.6kW system, a $200 usage household would be selling a lot back at 9.3c/kWh to Ergon instead of “saving” at 24.76c/kWh. A $500 usage household would be selling back less at 9.3c/kWh, but saving more (buying less power from Ergon) at 24.76c/kWh. Plus, the goal with solar is to save your usage, not trying to get rich from selling back surplus through the daytime.
The more of their usage that people can move to the daytime (instead of nighttime), the more they will save. That’s why putting hot water timers in for electrical hot water system so that they operate during peak solar production hours, is a good idea for most households.
What are the other benefits of installing solar?
Reducing the cost of your electricity bills is the most obvious benefit people think of when it comes to solar – but did you know there are many other reasons to install solar? Here are a couple important ones:
Help minimise the impact of future electricity price rises. The price of electricity will rise. It is not a question of IF, but rather, WHEN and BY HOW MUCH? A solar power system helps immune you from the inevitable price rises.
Reduce your carbon footprint and help make the world a greener place for our children and grandchildren.
Low maintenance – Solar systems only require a clean/check once a year or so (depending on where you live).
Money generating asset – Good quality solar systems aren’t cheap, but they save you money in the long term. Most solar systems pay for themselves in around 6-10 years and everything after that is money straight into your pocket!
Got any questions? We’re here to help! Call our friendly team on 4637 2744 or email us at admin@electricalsensations.com.au.
At Electrical Sensations, we are proud to have been servicing Toowoomba and the Darling Downs since 2004. We are 100% committed to designing energy-saving solutions and installing high-quality equipment that will best meet your needs, in a manner that we are proud to put our name to. No cutting corners or compromising on quality, reliability or safety.
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