How much can a solar power system contribute to the value of your home?

How much can a solar power system contribute to the value of your home?

Installing backup power equipment such as a solar system for your home might boost its worth by up to 8%, and South Africans have numerous alternatives for paying off the expenditures over time.

According to Only Realty general manager Megan Ladbrook, the business has observed a significant rise in prospective buyers requesting a home with a backup power option.

According to statistics from South African home loan company Ooba, a solar power installation may boost the value of a house by 3% to 4%.

“A lot of people are thinking that it might be a little bit more than that and that this is a conservative estimate. It could actually be up to 8%,” she said in an interview with CapeTalk.

According to Ladbrook, the present load-shedding situation in South Africa has made backup power solutions a top concern for potential house purchasers.

“We are finding that for so many people, it is obviously top-of-mind. It’s one of the first things that a lot of buyers are asking,” she explained.

Installing backup power is one way owners may make their houses more appealing to prospective buyers, according to her.

“Interestingly, a lot of sellers are interested in trying to find ways that they can put their property ahead of the pack, and solar is one of them,” Ladbrook said.

“They aren’t cheap systems. There are obviously different options for financing, but it’s quite an investment for somebody to make, so if you can buy a property that’s already got all of those things installed, it is definitely something that buyers are looking for.”

When asked if Only Realty is receiving a significant frequency of calls from prospective buyers stressing their wish for a property with a backup power solution, Ladbrook responded there is a “huge push for it”.

She claims that there is a widespread misperception in South Africa that backup power supplies can only be purchased outright.

Ladbrook, on the other hand, emphasised many financing alternatives that South African residents might use to pay for the system over time.

“There [are] some interesting financing options that have come to the market recently,” she said.

“Banks have now come to the table and are offering the ability that you can add the cost of your solar installation to your home loan.”

This allows homeowners to choose an appropriate system and pay for it with their mortgage payments.

“[There are] some other more creative options like rent-to-own systems, where different solar financing companies have offered consumers an option to pay monthly with the understanding that they will own the equipment after a certain period of time,” Ladbrook said.

“That period is usually five to seven years, which is obviously less than your home loan, but it gives you a bit of flexibility especially if you are planning on selling.”

She also mentioned rental businesses like Go Solar, which allows customers to hire backup power equipment starting at R1,500 a month, depending on the package.

The system would cost R163,000 if purchased outright. Alumo Energy, on the other hand, offers a rent-to-own option for R2,500 per month.

A 10% down payment and a monthly payment of 1.528% are required for the rent-to-buy option. Customers can then repurchase the system after seven years for 10% of the initial price.

This raises the price of the system over the cost of purchasing it outright. It is, nevertheless, a fantastic choice for individuals who are unable to pay a substantial quantity up front.