As more and more homeowners take up rebates offered by solar energy on household energy consumption, there will be an increase in the value of sustainable homes. This is according to Herron Todd White (HTW) and independent advisory group.
The Managing Director at HTW in Melbourne, Tony Kelly said that the value of homes of solar energy users has a likelihood of increasing. This would add capital benefits to energy savings. Every day, any house with a fully equipped solar system will be saving money as it minimises the dependence on the electricity grid. The energy costs, on the other hand, continue to escalate, savings made in a solar house will, in turn, accelerate rapidly.
Such realisations are going to influence decision-making when it comes to purchasing of homes, whether new or old. If there could be two houses at around a similar price but one is fully equipped with the solar energy system, for example, it is obvious a house buyer would pick the solar house. According to the MD, this is a factor that could alter prices and even valuations.
Mr Kelly also added about sustainable housing and how it was a future concept. This would make property builders or developers to either take note or fall behind since consumers will continue choosing homes that will save them money.
Thinking of what the customer will be buying, there are high chances that there will be great transformations. New technology brings houses into a new automated Hi-Tech world of a smart home. These utilise a whole new level of remote operation and standby power. Should any of these homes have systems that deliver energy use saving like the one offered by solar, it could be the smartest utilisation of the advanced technology.
There are possibilities that homes that still depend completely on the grid will experience deterioration in value as they struggle not only to compete in the market of new solar energy systems but also to afford the use of latest lifestyle technology as explained above.
Government initiatives like the one announced by the Victorian Government would surge the take up of solar energy. Under a $1.24 b State Government election promise, owner-occupiers in Victoria, for instance, will have their solar panel for their homes prices halved with no upfront cost. This programme will see 650,000 homeowners over 10 years get access to over $4,000 to install solar panels. The government estimates these households to save about $900 annually.
Even more, these Victorian households will be paid about $5,000 to acquire home solar battery to store energy from solar panels, potentially saving more money. With an average 11kW battery, a household could save about $650 in a year on electricity bills besides the savings households are making already for use of solar panels.
You can see how the home solar battery also contributes to the increase in property value. These will be available in growth areas where the number of homes with solar panels is large already. Relatively, this will pave way for future microgrids, where households in a local area can store and share electricity generated from solar panels, lowering electricity prices even further. This most certainly will increase property prices for such an area.