Does Solar Panel installation make my house more valuable?
Senior Marketing Specialist
Real estate prices depend on lots of factors - size, location, facilities, park, pool, etc. These days a new factor has been added to the list which can increase the value of the property. It’s solar panels installation on the property. But most people are not aware of how getting a solar panel installation increases the price of the house.
Let's see how solar panels increase the value of the house.
Factors that play a role in value addition of the property:
1. The benefit of Free Electricity/Reduced electricity bill by using solar panels
2. Considering Solar Rooftop System as an added Appliance
The benefit of Free Electricity/Reduced electricity bill by using solar panels:
When you get solar panels installed on your rooftop. You are ensuring free electricity for your house. You are doing a value addition for the prospective buyer. He will not have to pay for electricity if he/she buys the house.
Imagine a house with no monthly electricity bills. It definitely increases the value of the house. In India, solar is still in a nascent stage. But countries where it is adopted at a larger scale by people, have experienced an increase in the property's value.
As stated on CNBC.com
"Installing solar panels in a home not only helps to reduce current monthly utility bills; it can potentially increase the home's value by up to 4.1% more than comparable homes with no solar panels, according to recent solar research done by Zillow — or an additional $9,274 for the median-valued home in the U.S."
As mentioned on lendi, in Australia a 5kW solar system increases the value of property by almost $29,000. A survey conducted by Origin energy revealed that 85% of Australians thought solar panels added value to the property.
In Canada, the price of a property increases by 3-4% after getting solar. And the houses with solar sell faster than non-solar homes.
The numbers will vary for India. But these numbers can be better for India as the sunshine is abundant in India. Most of the states get sunshine almost the entire year.
Considering Solar panels as an added appliance:
Suppose you want a property with a swimming pool or extra parking or roof rights. You will have to pay extra for these added advantages. These things add on to the property and increase its value. Similarly, if you consider a solar rooftop system as an appliance, it is an addition to a house and will enhance the value of the property.
A house which has its own electricity generation will have more value than one without.
The value addition also depends on the following factors:
The higher the utility rate, the higher is the saving by reducing the electricity bills. Higher saving means more addition to the property's value. Money saved on electricity bills is directly proportional to an increase in property’s value.
With the advent of EVs, switching from petrol to electricity is very much likely in every home, which will increase the need for electricity. The higher need for electricity makes the house with solar more in demand thus increasing the property’s value.
P2P energy trading:
A P2P energy trading trial was started in Dwarka(Delhi) in 2019. In this trial, people were able to sell the excess energy to their neighbours. This system will be used on a mass level to promote P2P energy trading in near future.
Imagine the benefit it will derive for the solar system owner. Generating your own electricity, using it for free and selling it to your neighbours.
Size of the system:
A bigger system means bigger savings, which ultimately means higher value addition to property’s value. Eg: A 10kW system will add more to the value of a property than a 5 kW system.
Solar comes with lots of benefits. You can save money on electricity, you can save the environment and, of course, you can increase the property's value if you have solar installed at your home.
In case of any queries, please get in touch with us. We are happy to help.
Senior Marketing Specialist
Rohit Grover is the Senior Marketing Specialist at Sunson Energy. He takes great pride in writing easy to understand content for everyone. He is a renewable energy enthusiast who has a keen interest in environmental protection.