How solar panels can raise the value of your Melbourne property

Australians spent $70 million on solar panels last December.

That figure comes from the Moreland Council, who have partnered with Positive Charge to provide cheaper, better quality solar photovoltaic (PV) systems for people who want to adopt clean energy for their homes. But how much does this mean you usually pay for solar, and does it help when you’re selling a house in Melbourne?

Breaking down the cost of solar panels

Solar Choice, a popular aggregator of installation quotes, has released a monthly index on the cost of installing these systems. In February 2017, average prices for installing solar PV in Melbourne were as follows:

• $3,497 for a 1.5 kilowatt system
• $4,076 for a 2 kilowatt system
• $4,589 for a 3 kilowatt system
• $5,565 for a 4 kilowatt system
• $6,468 for a 5 kilowatt system
• $13,492 for a 10 kilowatt system

How much will this add to Melbourne property values?

Melbourne’s prices sit below the national average, especially the pricing of 1.5 to 3kW solar PV systems. If you omit battery storage from your solar use, then a 2-3kW system will be all you need to cover up to 45kW of power per day as well – which is plenty.

The general consensus is that people pay more for homes with solar. Research shows that 85 per cent of Australians would pay extra if a property had rooftop panels, and 78 per cent would do the same for solar hot water.

How much more could people pay for a home with solar panels?

While local research on the dollar figure is scarce, US figures suggest that a premium of $20,000 extra could be in the works if your home has solar panels. For an initial investment of barely $5,000, this is an appealing addition. Electricity costs have trended downwards over the last 15 years with solar as well, giving you further savings before you sell.

A 2016 survey showed that 17 per cent of Victorians already have solar, with another 38 per cent intending to add a system in the next five years. Given the benefits for your bills and your sale, it’s hard to argue with that growth.

For any questions about how to maximise your Melbourne sale or simply to open a conversation about what selling entails, talk to the locals at Nelson Alexander. If you already have solar PV installed and want to work out if it has added to your sale price, make sure to secure a property appraisal.