If you’ve been considering solar panels, you’ve probably weighed up the savings on your electricity bills. But there’s another financial benefit most homeowners overlook entirely: what solar does to your property’s resale value.
The short answer is yes solar increases home value in Australia, and the data in 2025 is stronger than ever. But the amount it adds depends on your system size, location, and whether you’ve also added battery storage. In this guide, we break down exactly what the research says, what affects the premium, and how to make sure your solar investment delivers maximum return whether you’re planning to sell in two years or twenty.
What the Data Actually Says
This isn’t anecdotal. Multiple independent studies and property market reports published in 2024 and 2025 confirm that solar adds measurable, real-world value to Australian homes.
The most comprehensive recent study comes from property data firm Cotality, conducted in partnership with the Commonwealth Bank of Australia. Analysing sales data from over six million Australian homes up to April 2025, Cotality found that homes with solar commanded a 2.7% premium, which averages out at $23,100 per home.
Separately, Domain’s 2025 Sustainability in Property Report which looked at energy-efficient homes more broadly found that houses with solar panels sold for an average of $140,000 more than homes without solar across Australia. It’s worth noting that this figure reflects homes with multiple energy-efficient features, not solar alone, but it illustrates the direction buyer sentiment is heading.The buyer appetite is just as clear. Of the 77% of respondents from an Origin study that believed solar increased the value of a property, 57% said they would be willing to pay up to $10,000 more for a home equipped with solar and 60% would pay more for a house with both solar and battery storage.
How Much Value Does Solar Add Per Kilowatt?
System size matters. The bigger the solar installation, the greater the value added and this relationship is backed by research.
Each 1kW of solar installed can increase the value of your home by up to $6,000. This means a 5kW solar system can add $29,000 to the value of your home.
Using that same logic:
| System Size | Estimated Property Value Added |
| 6.6 kW | ~$39,600 |
| 10 kW | ~$60,000 |
| 13.2 kW | ~$79,200 |
This is one of the strongest arguments for not undersizing your system. When you read our guide to what size solar system you need, you’ll see that a 6.6 kW system is the most popular choice for Sydney households and it’s also the size that tends to be most immediately recognisable and attractive to buyers.
Does Adding a Battery Increase Value Further?
Yes — and significantly. Buyers increasingly understand that a solar system without storage still leaves a home dependent on the grid after dark. A solar battery completes the picture, and buyers are willing to pay for that completeness.
In one survey, 60% of buyers said they would be willing to pay more for a home with both solar panels and battery storage, a higher proportion than those willing to pay more for solar alone. As battery ownership becomes more common in Australia, buyers will increasingly expect storage as part of a complete energy setup, much the same way they now expect solar panels themselves.
The most popular battery option for Australian homes is the Tesla Powerwall 3 widely recognised by buyers and agents alike, which makes it a particularly strong choice if resale appeal is part of your thinking. Alternatives like the BYD Solar Battery and Sungrow Solar Battery offer strong value propositions for homeowners prioritising storage capacity over brand recognition.
If you’re not sure whether to go AC-coupled or DC-coupled when adding battery storage, our guide to AC-coupled vs DC-coupled batteries explains the difference and which approach suits retrofit vs new installations.
Does Solar Help Your Home Sell Faster?
Beyond the sale price, solar-equipped homes tend to spend fewer days on the market. Research suggests that energy efficient homes sell faster and attract more buyer interest.
This makes practical sense. With electricity prices climbing steadily across NSW and the rest of Australia, buyers are actively factoring energy costs into their purchase decisions. A home that already has solar panels installed removes one of the biggest post-purchase decisions a new owner faces and removes it at zero additional cost to them.
Domain’s Chief of Research Dr Nicolas Powell noted that “energy efficient homes are no longer an ethical choice, they’re a smart financial choice, particularly given rising energy prices and mounting cost of living pressures.
Does Solar Add Value for Rental Properties Too?
Absolutely and this is an angle many property investors overlook. A 2023 study found that rental properties with solar systems earned an average of $19 more per week compared to those without and landlords can recover the cost of installing solar panels within around five years.
In one survey, 55% of renters said they would be willing to pay up to $10 per week more for a property with solar panels. For landlords managing a portfolio of investment properties, that additional weekly rent compounds significantly over time — while simultaneously making the property more attractive and reducing vacancy periods.
For landlords, the federal government solar battery rebate also applies to investment properties under certain conditions, reducing the upfront outlay considerably. And if upfront cost is a barrier, Solar National’s flexible finance options and Handypay solar finance make it possible to spread the cost and begin recouping returns immediately.
What Affects How Much Value Solar Adds to Your Home?
Not all solar systems add the same amount of value. Several factors influence the premium a buyer will pay:
System size and quality
Larger systems generate more savings, which buyers understand and value. Higher-quality solar panels with longer warranties also add confidence; a buyer who sees a 25-year panel warranty and a 10-year installation warranty is far more likely to see the system as an asset rather than a potential liability.
System age and condition
A brand-new 6.6 kW system adds more value than a 12-year-old 3 kW system nearing the end of its inverter’s life. If you’re planning to sell in the next few years, installing now means you’ll sell with a relatively new system still performing at or near its rated output.
Whether you have a battery
As discussed above, adding storage, particularly a recognizable brand like the Tesla Powerwall 3 or Sigenergy Battery materially increases the premium buyers are willing to pay. If you’re investing in solar ahead of a sale, it’s worth considering whether the additional cost of a battery will be recouped in the sale price.
Location and local market
The premium paid for energy efficient homes varies by state. In Melbourne, energy-efficient homes commanded a premium of 23.8%, while in Brisbane the value applied was lower at 14.1%. Sydney falls in the mid-to-upper range of this spectrum, given the city’s high electricity prices and strong buyer demand for sustainability features.
Whether the system is in good working order
A poorly maintained or faulty system can actually deter buyers rather than attract them. Before listing your home, it’s worth having your solar system inspected by a qualified installer and reading up on solar battery safety in Australia if your home includes battery storage, since buyers and their conveyancers are increasingly asking about installation compliance.
Does Solar Add Value If You’re Installing for the First Time?
If you’re installing solar on a home you plan to sell within 5–10 years, the value equation is particularly compelling. You benefit from lower electricity bills for the years you remain in the home, you receive a government rebate via the Small-Scale Renewable Energy Scheme at the time of installation, and you sell at a premium that reflects the system’s value to the incoming buyer.
The federal government’s Cheaper Home Batteries Program has also made the combination of solar and battery storage more accessible than ever in 2025 meaning there’s rarely been a better time to install a complete system before going to market.
For residential solar installations across Sydney and NSW, Solar National provides a full end-to-end service — from system design and council approvals through to installation, commissioning, and ongoing support. All installations carry a 10-year workmanship warranty.
What About Commercial Properties?
The value equation applies to commercial premises too, though it plays out slightly differently. For a business, solar reduces one of the largest overheads of electricity making the property more attractive to incoming tenants and increasing the yield calculation for investors.
Australia’s move to electrification continues to gain momentum, with a growing shift towards using renewable electricity to power various aspects of everyday life, including heating, cooking, and transportation and commercial properties that are already electrified and solar-ready are positioned strongly for this transition.
For businesses in Sydney and NSW, our commercial solar installation service covers everything from small retail premises through to large industrial rooftop systems.
How to Maximise the Property Value Solar Adds
If adding value is part of your motivation for going solar, here’s how to get the most out of the investment:
Choose the right system size. Don’t undersize to save money upfront. A larger system adds proportionally more value and takes the same amount of time to install. Read our full guide on what size solar system you need to find the right fit for your home.
Add battery storage. The data consistently shows buyers pay more for solar-plus-battery than for solar alone. Consider the Tesla Powerwall 3, BYD Solar Battery, or SAJ Solar Battery depending on your budget and capacity needs.
Use quality products with strong warranties. Premium-tier solar panels and solar inverters with 10–25 year warranties give buyers confidence that they’re inheriting an asset, not a maintenance problem.
Keep documentation. Retain all certificates, STCs, warranty documents, and installation records. Buyers and their solicitors will ask for these, and having them ready adds credibility and smooths the conveyancing process.
Maintain the system. Keep panels clean, have the inverter serviced periodically, and ensure the system is operating at expected output before listing. A system showing strong monitoring data is a selling point. A system with error codes or reduced output is not.
Consider joining a Virtual Power Plant. Some VPP programs offer smart hardware and monitoring software that increases the visibility and perceived modernity of your energy setup. Learn more about Virtual Power Plant participation and whether it’s right for your home.
The Bottom Line
Solar panels are one of the few home upgrades that pays you while you own the property and pays you again when you sell it. The research is consistent: solar adds real, measurable value to Australian homes and that value increases with system size, battery storage, and system quality.
For Sydney and NSW homeowners, the combination of strong electricity prices, high buyer demand for sustainable features, and generous government rebates makes 2025 one of the best years on record to invest in solar whether you’re staying put for decades or planning to sell in the next few years.
