Does Solar Increase Home Value in Australia? What the Research Shows

Written by Jos Aguiar·April 2026·7 min

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What the Research Says

Several Australian studies have examined the relationship between solar panels and property prices. Research from RMIT University, along with analysis of real estate transaction data from CoreLogic and state-based property records, consistently finds that solar panels are associated with a 3 to 4% premium on residential property values. This is not a trivial amount: on a $700,000 home, 3 to 4% represents $21,000 to $28,000 in additional sale price.

The mechanism is straightforward. Buyers who understand running costs — particularly in a market where electricity prices have risen significantly — value a property with lower electricity bills. Solar panels are a visible, understandable signal of lower ongoing costs. In a competitive market, buyers competing for a home with solar will often pay more than they would for an identical property without it.

What Affects How Much Value Solar Adds

The 3 to 4% figure is an average. The actual premium varies with:

• System size: A 6.6kW system with good monitoring data adds more value than a 1.5kW legacy system from 2009. Larger systems that cover more of a household's electricity needs are more compelling to buyers.
• System age and brand: A 3-year-old Jinko or LONGi system with a current warranty is a different proposition from a 14-year-old system from a brand that no longer exists. Buyers and their conveyancers are increasingly aware of this distinction.
• Documentation: A well-documented system (installation certificate, warranty cards, generation records) commands more confidence than a system where the paperwork cannot be located. Missing documentation creates buyer hesitation and can reduce the premium or create conditions on settlement.
• Local buyer profile: In areas where buyers are financially sophisticated and aware of running costs, solar premiums are higher. In markets where buyers are primarily focused on the property itself and less aware of electricity costs, the premium may be smaller.
• Inverter age: Inverters typically have a 10-year warranty and are the component most likely to need replacing in older systems. If the inverter is approaching end of warranty or has already been replaced, this is a relevant factor for buyers assessing future maintenance costs.

Does a Battery Add Extra Value?

This question is harder to answer definitively. Battery storage is a relatively recent mainstream product in Australia, and the volume of real estate transactions involving battery-equipped properties is still small enough that clean statistical analysis is difficult.

In buyer surveys, interest in battery storage is consistently high. Buyers frequently list energy independence and backup power as desirable features. Whether that interest translates into a measurable price premium in practice depends on the local market. In areas with high electricity prices (South Australia, parts of Queensland) or areas with relatively frequent outages (bushfire-prone regions, some rural areas), a battery is more likely to command a premium.

The practical advice is to treat the battery as a running-cost investment for your time in the property, with a modest potential resale benefit rather than a guaranteed uplift. The 3 to 4% solar premium is better established; the battery premium is harder to predict and varies considerably by market.

Documenting Your System Before Selling

The most actionable thing a homeowner can do to maximise the value their solar system adds at sale is to have proper documentation ready. Conveyancers, buyers' advocates, and informed buyers will ask for:

• The original installation certificate signed by the CEC-accredited installer
• Product warranty documentation for panels, inverter, and battery
• Any service records or maintenance history
• Network connection agreement from the distribution network operator
• Feed-in tariff agreement with the electricity retailer
• Monitoring system data (screenshots or export of historical generation)

If you cannot locate the installation certificate, contact the installer. If the installer is no longer operating, the Clean Energy Regulator may have records. The monitoring system login (Sungrow iSolarCloud, Tesla app, SolarEdge, etc.) provides generation history that demonstrates the system is working as expected.

Solar and the Rental Market

Solar also affects rental yields, though this is a more complex picture. Tenants pay the electricity bills in most residential tenancies, which means solar directly benefits tenants rather than landlords in the short term. Some landlords have successfully negotiated higher rents on the basis of lower electricity costs (particularly for tenants who work from home or have high usage), but this is not universal.

The rental property value uplift from solar follows similar logic to owner-occupied: the property itself is worth more at sale, regardless of the rental dynamics. Investors who plan to eventually sell a property should account for the 3 to 4% value uplift in their long-term return calculations, even if the immediate rental income benefit is modest.

Written by

Jos Aguiar

Solar Evangelist

Passionate about making solar simple and accessible for every Australian household. Jos breaks down complex energy topics into practical advice so homeowners can make confident decisions about solar, batteries, and energy independence.

Learn more about Jos Aguiar