Will Solar Panel Installation Add to The Value of My House in Auckland?
Recent studies have indicated that Kiwis are preferring to buy homes with the added property value of previously installed solar panel systems. For the past five years, the majority of New Zealanders have found it difficult to embrace the legitimacy of homes powered by solar energy completely. This has changed as homeowners began informing themselves of how this installation can add value to your property when it comes time to put your home on the market.
The solar power industry has spent a lot of time and effort informing the real estate agents and mainstream power companies, in Auckland and the rest of the country, that this is a fantastic way of creating electricity. This has had a slow trickle-down effect on the rest of the public. Politics got involved because some power players had vested interests in hydro-electric companies. This resulted in the solar power industry being given a smaller platform than it is in other countries.
What the Statistics Say About Solar Panels Raising Property Values
Origin Energy and one of the leading real estate websites in Australia discovered that over 85 percent of Australians have understood for the last five years that solar panel installations bring added value to a home. Similar research in the United States done by their National Economic Bureau found that solar panel installations added around USD 20,000 to the value of a property on sale. The research looked at the data from both sides: The price paid for homes without solar panels on average, and the average price paid for homes with professionally installed solar panels.
As the green generation grows up and begins to buy houses in and around Auckland, the increasing demand for properties with solar power will grow. This will drive up the prices of homes that meet that criteria. If someone in Auckland installs solar panels in their home, the return can range from NZ $20,000 and higher. These are the reasons why:
- The average cost of a professionally installed solar panel system ranges from $6,000 to $15,000 (depending on how many panels, size of house, etc.)
- The buyer is motivated to buy a house with previously installed solar panels because it saves them the hassle of doing it themselves.
- While you live in the house, you benefit from reduced utility bills.
- You contribute towards a cleaner energy alternative.
- The initial costs are covered by the inclusion of this type of power system on your home.
- You are turning the space on your roof into a commodity.
- If you decide to rent out your property instead of selling it, the demand for rented houses with solar power is far higher.
- Solar powered homes are seen by the tenant as a chance to spend less on utilities so they can spend more on rent. This is a win/win for the homeowner.
Solar Panel Installation Savings and Investment
Making money from an investment will always be a key strategy for property owners in Auckland. As the most heavily populated area in the country, in the long run, Auckland house prices will continue to rise. Alongside this continued growth, buyers will be demanding the properties they purchase conform to their ideologies of green energy and cheaper power sources.
2019 will be the year that Kiwis begin to insist that the house they buy has solar panel installations on the rooftop and solar hot water tanks. By next year, it will be standard practice to have new homes built with solar energy panels. So, the question is not so much that solar panel installation will add to the value of your house, but that it will be increasingly difficult to sell your home at a wide margin of profit if it doesn’t have solar power installations.