Many consumers are interested in reducing their carbon footprint. The dangers of greenhouse gas emissions and the consumption of fossil fuels have become abundantly clear in recent years, according to many media reports. As a result, many homeowners are interested in investing in eco-friendly homes. If you’re thinking about selling your property in the near future, making your home greener with the use of a solar system may be worth considering. This involves the installation of solar panels onto the roof, which are capable of converting solar energy in electricity. Creating a renewable energy source at home is a worthwhile endeavour for many, but it can also be expensive.
For those who are planning on selling property soon, adding solar power to the property may help boost home values. Yet this will depend on your local market and demographic. It’s a good idea to examine the issue from all angles with the assistance of a qualified local real estate agent. You can compare agent qualifications by registering your details at LocalAgentFinder. This will help point you in the right direction when it comes to upgrading your home in any way before selling. A real estate agent can help you answer the question regarding whether or not adding solar power will help add value at the same time.
The Benefits of Solar Power
In a nutshell, the answer to this question will be a yes. A solar system at home helps supply the property with electricity. This makes the property more self-sufficient, reducing reliance on the national power grid and lowering utility costs over time. The amount that the property owner will actually save after installing solar power will depend on several factors. This could include the fees that your electricity company charges, the type of solar system you install, and the overall efficiency of your property. Because energy rates grow higher every year, presenting buyer with an alternative source of energy is an attractive money-saving solution.
Buyers aren’t the only ones who may be impressed by your solar system. When you have a valuer come to assess your home, if you can make them see that renewable energy is a way to lower overhead costs for appliances, heating, and cooling systems, you may achieve a higher property value as a result.
Financing Solar Panels
The one downside to installing solar power in your home is that it requires a high initial investment. Installation costs will vary depending on the type and size of solar system that you install, but it can easily cost tens of thousands of dollars. Fortunately, there are government programs in place to provide financial incentive for property owners to install these green-friendly energy sources. The Solar Homes and Communities Plan was formed in 2000 by the Australian Federal Government, known at first as the “Photovoltaic Rebate Program.” This program essentially offers rebates to those who make over their home with solar power, reducing the overall cost and making it more accessible to those on a budget.
Another financial benefit to installing solar systems is that they can earn you money. The Australian Federal Government has created electricity feed-in tariffs in most Australian states. These are designed to pay you for energy that your solar system produces. There are two types of schemes, including gross and net. With the gross payment scheme, homeowners are paid for all electricity that is generated. A net scheme only pays you for the excess energy you produce, or the amount that you don’t use at home which feeds back into the power grid.
The exact rates will vary, so to find out what payment scheme applies to you it’s a good idea to check in with your local government. Your real estate agent may also have up-to-date knowledge regarding these payback schemes. Search for a local agent by using the free online dashboard at LocalAgentFinder and you may receive greater insight into how a solar system could be financially beneficial in your area.
Solar Systems and Resale
There are very real advantages to installing a solar system. Yet if you’re mainly interested in selling your home, you will be concerned with how this affects your resale value. There are numerous factors that can impact your total power savings, which could shorten or lengthen the amount of time before you see a return on your investment. If you own a newer home, it may already be energy efficient and you will see a lower level of power savings than you would in an older home without this energy optimisation. If your property is surrounded by tall trees or in an area prone to cloudy weather, you will not gain the same benefit from solar power as you would in an area with unobstructed sunshine.
It’s true that many buyers are interested in reducing their environmental footprint, but not all will care about this. If you live in an area where buyers are fairly indifferent to environmental concerns, they may not appreciate the benefits of a solar system. Your local demographic will have a major impact on the value of your home. In some communities, the positioning of the solar panels could be seen as detracting from curb appeal. If buyers see them as an eyesore, then this will lower the overall property value. A home’s external appearance is important. You can read our article, “Video Tips that help when selling your home” for more details on how to make your house look its best.
A solar system will usually become a positive return on investment, although this varies depending on the factors mentioned above. However, you will need to stay in your home for at least five years to make back the cost of the initial installation. If you’re planning on moving before then, you’ll probably lose money in the process.
With so many different elements that can influence whether or not solar power is a good investment, it’s best to seek professional advice. You can first speak to a sustainability assessor, who can examine your home and help you determine how much you would save with a solar system. Finally, as the time comes to sell your home it’s best to speak with a real estate agent who will be able to help you highlight your green improvements as a strong potential selling point. A good real estate agent will be able to market these features for you, to give you the maximum return on your investment.
You can find a real estate agent who has training in green home improvements by comparing agent qualifications at LocalAgentFinder. This no-obligation service has been matching sellers and agents since 2007. Find out how it works and learn more about the right types of investments to sell your property.
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