Franzen Tips #1149:

 

The Value of Solar

 

We thought we should write this week’s “Tips” about new news that emerged this week about the housing and rental crises but as that sounded a bit “heavy”, we will leave that topic until next week. So, this week we thought we would explore the topic of solar, its costs and does it add value to your property.

 

Australia has a reputation for being an early adopter of most technologies (more on that below). Solar panels have been a classic example with nearly 1 in every 3 homes in Australia now having solar panels. Indeed, it has been so successful that it has highlighted potential issues with the design of the electricity grid that was never designed for so much power being sent the other way (aka from houses back into the grid).

 

The true value of solar is difficult to ascertain as it depends on the power usage during the day. For example, if you are usually at home during the day using household appliances or power tools etc then solar can be of great value in reducing your power bill. For this reason, you see a lot of businesses that use heavy power drawing tools and equipment often having huge arrays of solar panels on their roofs. You also get more value out of solar if you can afford to add a battery to capture the surplus power so that it can be used during the evening or when the panels are drawing insufficient power to meet your demands.

 

The panels can also add more value if you have an electric vehicle where you can charge your vehicle with surplus power from the panels. And conversely, some (currently only a few) electric vehicles can be “a battery to the house”. This could be extremely useful during a blackout where power from your car’s battery could be used to keep the essential appliances in the house running. The interesting point here is that while Australians have been early adopters of solar panels, we have been laggards when it comes to the uptake of electric vehicles. This is now slowly starting to change and indeed the ACT is leading the way with 18% of new vehicle registrations this year being “zero emission vehicles”.

 

But, back to solar. You may be thinking about adding solar panels (and maybe a battery) but can’t quite justify the expense. If so, consider this. This week, the Sydney Morning Herald reported that “you’ll find the capital investment into your property will add at least as much value as the system itself with Domain.com noting that when it comes time to sell up, an energy-efficient home can be worth as much as 17 per cent more than an equivalent property.”