Does installing solar increase the market value of your home? In short, the answer is yes although some estate agencies believe that there is not a direct correlation between household market value and Solar PV. A study done in the US as per the National Renewable Energy Laboratory has shown that for every $1 of savings achieved, you add $20 to the selling value. In addition, this study showed that homes with Solar PV, sold 20% faster than those without a Solar PV system.
Although South Africa generally falls behind the trend on implementation of Solar, this is fast changing due to completely different energy challenges compared with the rest of the world. In short, the many woes of Eskom.
Homes in South Africa generally don’t just come with Solar, but also many come with energy storage systems. (See out blog on why lithium compared to lead acid). This means that the homes will not have to face the horrible reality of load shedding or load curtailment which crops its head from time to time.
Not only this, but energy prices in South Africa are growing fast (double digits) and well beyond inflation, so most of these are great incentives to buy a home with Solar PV and or Solar PV with energy storage.
With Solar PV offering such great returns, home owners are more likely to invest their money on areas that reduce household expenditure and provide guaranteed returns over a long period, as majority of panels on the market provide you with a guaranteed 25 year generation warranty and still provide 80% of the power generation in year 25.
So in short, this investment;
- Provides savings from day 1
- Yearly savings throughout the expected lifetime – 25 to 30 years.
- Increase desirability of the home
- Adds value to the home
- Stops load-shedding – in combination with energy storage.
- Low maintenance costs (cleaning of panels a couple of times a year).
Apart from the many reasons provided above, our clients are looking for sustainable alternatives that provide some level of security and independence from a national energy provider. How serious is the problems at Eskom.
Well as an article published by Luyolo Mkentane from Business Day reported on the 8th December 2020, Eskom has a gross debt of R500bn and the credit agencies have characterised Eskom as the single biggest risk to the economy of South Africa.
Therefore, Solar PV and energy storage has to form part of the strategy of most businesses and home owners. If you would like to know more about how installing solar increases the market value of your home, please do not hesitate to contact us today.