Perth landlords invest in solar

Why more and more landlords are investing in solar!

Solar power has and continues to deliver excellent results to homeowners across WA. With the WA market now providing more and more cost competitive solar solutions many Perth homeowners are now starting to see payback periods of just 3 - 4 years!

For investment property owners however, solar energy costs vs the financial benefits haven’t always stacked up, as the savings go to the tenants rather than the person paying for the panels. Therefore there has been little appetite for landlords to consider adding solar panels to their properties. Times are changing though, as more affordable solar solutions hit the market, landlords are starting to see how they can benefit from adding panels to their investment properties.

Benefits of adding solar to your investment property

1.) Increased property value – over recent years there has been an increase of homebuyers looking for energy efficient homes. A Real Estate Institute of Australia survey found that over 85% of respondents rated a solar system (without battery storage) would add value to a house. To 78% of those surveyed solar would add $10,000+ to the value of a property. See Real Estate Survey

2.) Energy efficient homes more attractable to renters – as with homebuyers, tenants are also on the lookout for homes with solar panels. Energy efficient homes are becoming a key factor for many WA tenants when looking for rentals.

3.) Increased rental returns – as per above as more tenants look for energy efficient rentals research has also shown that renters are prepared to pay a premium to access the savings that come with solar power. A survey commissioned by Origin Energy revealed that two thirds of renters would be willing to pay at least $5 more a week for a property with solar panels, while 55 per cent would pay at least $10 more.

4.) Tax deductions – the ATO allows you to claim a 10% decline in system value each year using the ‘diminishing value’ method for up to 20 years.

In summary solar energy is an investment that tenants across Perth are willing to pay extra for and could be an easy way for you to make more from your investment property!