Yes, solar does increase property value in Australia, and the data in 2026 is stronger than ever. A landmark study by property data firm Cotality, analysing more than six million Australian homes, found that properties with solar panels command an average premium of 2.7%, or approximately $23,100, compared to homes without solar. For some states, this premium reaches well above $30,000.
If you have been weighing up whether a solar increase property value outcome justifies the upfront investment, this guide lays out everything you need to know. From independent research and state-by-state breakdowns to what buyers are actually willing to pay, you will leave with a clear, data-backed answer.
What the Research Actually Says: The Numbers Behind the Premium
Solar’s impact on Australian property values is no longer anecdotal. Multiple independent studies from universities, property data companies, and financial institutions now confirm a consistent and measurable price premium.
Cotality’s “Watts It Worth” Report: The Most Comprehensive Study Yet
The most authoritative study to date is the “Watts It Worth” report by Cotality (formerly CoreLogic), conducted in partnership with the Commonwealth Bank of Australia. The research analysed sales data from over six million Australian homes in the 12 months to April 2025.
The study found that nationally, the value boost averaged $23,107, representing a 2.7% premium for homes with solar compared to equivalent homes without it.
This was not a regional anomaly. The uplift was evident across diverse market segments rather than being confined to higher-value suburbs or income brackets. Whether you own a three-bedroom house in suburban Brisbane or a modest home in regional South Australia, solar adds measurable value across the board.
Importantly, Cotality used a rigorous methodology. Calculating the lift in value solar provides was based on the presence of solar panels versus none, with all other attributes held constant, and values were based on 12 months sales data to 15 April 2025. This removes the noise of neighbourhood quality, bedroom count, and other variables, isolating the solar contribution alone.
Earlier Studies That Confirm the Trend
The Cotality report does not stand alone. Other research reaches similar conclusions.
A study from the University of Western Australia found that properties with solar panels saw an increased property value of between 2.32% and 3.20%. At the time of the study, this represented a $16,124 and $22,240 premium on the median house price in Perth.
Domain’s 2025 Sustainability in Property report shows that energy-efficient homes are selling for an average of $118,000 more than standard homes across Australia. The report states that energy-efficient homes are no longer an ethical choice but a smart financial choice, particularly given rising energy prices and mounting cost-of-living pressures.
Additionally, studies conducted by organisations such as the Australian PV Institute suggest that a residential property with a solar power system could see an increase in value ranging from 3% to 5%. For a home valued at $800,000, a 3% increase equates to $24,000. A 5% increase equals $40,000.
How Much Does Solar Increase Property Value by State?
The solar property premium is real across all of Australia, but the exact dollar value varies significantly by location. This reflects differences in property values, climate, and buyer demand in each state.
The impact of installing rooftop solar varies significantly across the country, with the biggest uplift seen in regional Northern Territory, where the addition of solar adds 6.9%, or about $31,350, to a property’s value.
In the capital cities, the results are equally encouraging. Solar delivered the highest premium in Hobart where it can add 5.4%, or $30,459, to a sale price. This was followed by Brisbane, where the solar premium adds $30,218, while in Melbourne and Sydney, solar adds an average of $24,369 and $19,179, respectively, to a property’s value.
By contrast, Perth recorded a larger percentage gain of 2.1% but a smaller dollar impact of $14,939, shaped by variation in property values, dwelling types, and consumer preferences.
To put this in practical terms: a homeowner in Brisbane who installs a quality solar system for approximately $5,000 to $6,500 after the federal rebate could see their property value increase by over $30,000. That is a return on investment of close to four to five times the cost of installation, before even counting a single year of electricity bill savings.
Does System Size Affect How Much Value Solar Adds?
System size matters. Larger solar installations tend to command a greater property premium, for one straightforward reason: buyers understand that a bigger system means bigger savings.
Each 1 kW of solar installed can increase the value of your home by up to $6,000. This means a 5 kW solar system can add $29,000 to the value of your home.
Therefore, a 6.6 kW system, which is the most popular size for Sydney homes and a commonly installed size across Australia, could add approximately $39,600 in property value by this calculation. A 10 kW system could add close to $60,000. Also, larger systems are easily identifiable to buyers during inspection, making the energy benefit immediately visible and credible.
A solar power system is one of the few home energy-efficient upgrades that is both easily recognised by buyers and reliably measurable in valuation models. Unlike insulation or double glazing, which are hidden from sight, solar panels are visible from the street. Buyers notice them before they even walk through the front door.
This is one of the strongest reasons not to undersize your system. Installing 6.6 kW or 10 kW rather than 3 kW does not cost dramatically more after rebates, but the property value uplift is meaningfully larger.
How Solar Increase Property Value: The Buyer Psychology Behind It
Understanding why solar adds value helps you communicate it effectively when you sell. The answer comes down to two things that all buyers care about: running costs and certainty.
When a buyer looks at a home with solar, they see a property that costs less to run from day one. They do not need to budget for a future solar installation. They do not need to research installers, navigate rebates, or wait for approval. It is already done.
A home with solar installation already in place signals lower power bills from day one. Buyers understand that energy prices are unlikely to drop long term, so a home that can offset those costs is more attractive. For many families, the promise of lower energy expenses over the next 10 to 20 years is worth paying more upfront for the property itself.
Also, the demographics of Australian buyers are shifting. Younger buyers in particular are deeply aware of energy costs, environmental impact, and the longterm economics of running a home. A property with a fully installed, CECaccredited solar and battery system is not just attractive – it addresses something these buyers actively look for.
Seven in 10 Australians believe energy efficiency is a way to increase property value. In a market where buyers are already financially stretched by high mortgage rates and costofliving pressures, a home that reduces their ongoing energy bill is a powerful advantage.
Does Adding a Battery Storage System Increase Property Value Further?
Yes. Battery storage adds a further premium on top of solar panels alone, and buyer demand for this combination is growing steadily in Australia.
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 for solar alone.
A wellinstalled solar and battery system does not just save you money while you live there — it can make your home more attractive, and potentially more valuable, when it comes time to sell. Buyers are factoring in the ongoing energy cost savings a solarandbattery setup provides, and many are actively seeking out properties with this technology already in place.
The practical appeal is clear. A home with solar and a quality battery system offers energy independence, blackout protection, and nearzero evening electricity bills. These are features that resonate strongly with buyers who are aware of rising grid electricity costs.
Furthermore, the federal government’s Cheaper Home Batteries Program means you can install battery storage at a significantly reduced upfront cost in 2026. A 14 kWh battery system attracts approximately $3,400 or more in federal rebate. Combined with NSW state incentives, the net cost can fall to under $7,000. The property value uplift from a complete solarplusbattery setup can comfortably exceed this investment.
Do SolarEquipped Homes Sell Faster in Australia?
Adding solar does not just increase what your home sells for. It can also reduce how long it sits on the market. Speed of sale has its own financial value, as longer days on market often result in price reductions and stress for vendors.
The same Domain report found that homes with sustainable features like solar panels attracted 16.7% greater interest and sold 4% faster than other homes.
Energyefficient listings received 13.8% more views. In a digitalfirst property market where buyers scroll through listings online before arranging inspections, a higher view count leads directly to more inspections and more competitive offers.
Real estate agents across Australia frequently note that homes with solar panels tend to generate stronger interest. Solar installation reduces uncertainty. Buyers do not need to plan for a future solar investment – it is already done. That convenience adds perceived value and can help properties sell more quickly.
Therefore, the benefit of solar is not confined to the sale price alone. A faster sale preserves your negotiating position, reduces holding costs such as mortgage repayments and council rates during the listing period, and delivers a better overall selling experience.
Does Solar Increase Property Value for Rental Homes Too?
Yes. Solar delivers measurable benefits for investment property owners as well as owneroccupiers.
Renters are prepared to pay $19 more per week to live in a house with solar panels. If the additional rental income per week is $19 with solar panels, this equates to $988 of extra revenue each year. Over 10 years, the additional income is $11,326, well over the cost of the system.
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 a modest number of years through the combined effect of higher rent and reduced vacancy periods.
For property investors, this creates a compelling financial case. Installing a quality residential solar system on a rental property in Sydney, Brisbane, or Perth not only increases rental income immediately but also improves the longterm capital value of the asset. The investment delivers returns on two fronts simultaneously.
What Factors Determine How Much Value Solar Adds to Your Home?
Not all solar installations add equal value. Several factors influence the premium your system commands when you sell.
System size and age matter most. A 10 kW system installed two years ago is worth significantly more to a buyer than a 3 kW system installed ten years ago. Newer, larger systems with many productive years remaining are viewed as readytouse assets. Older or undersized systems can sometimes raise questions rather than add confidence.
Installation quality and documentation also play a role. Ensure your system is installed by CECaccredited professionals, keep all documentation including warranty papers, installation records, and equipment specs, and choose premium equipment from reputable brands. A welldocumented, quality installation is a genuine asset when selling.
Brand recognition helps. Solar panels from wellknown, warrantybacked brands such as SunPower, REC, Tindo Solar, and Jinko carry more buyer confidence than unknown or discontinued brands. Similarly, inverters from established brands such as Fronius, SolarEdge, and Sungrow are recognised and valued by buyers who have done their research.
Location and solar penetration in your area also matters. In suburbs where solar is widespread, a home without it may be at a disadvantage. About 7% of Australian suburbs have at least half of the detached housing stock with rooftop solar, topped by the Sydney suburb of Bungarribee where 96% of homes have solar. In these highpenetration areas, solar is expected rather than exceptional.
Finally, battery storage is an increasingly important differentiator. As buyer awareness of battery storage grows, homes with a complete solarandbattery system are becoming the new benchmark for energyefficient residential property in Australia.
How to Maximise the Property Value Added by Your Solar System
If you want your solar installation to deliver the maximum return when you sell, a few practical steps make a meaningful difference.
Choose the right system size.
Install at least a 6.6 kW system rather than a smaller 3 kW unit. The marginal cost difference between system sizes is modest after rebates, but the property value uplift from a larger system is meaningfully greater. A 10 kW system is worth considering if your roof allows it.
Install quality components.
Premium panels and a reputable inverter brand reassure buyers. Cheap, unknown components can raise doubts rather than add confidence. Ask your installer about panel brand reputation and inverter warranty terms before committing.
Add battery storage if you can.
A complete solarplusbattery setup is more attractive to buyers than solar alone. With the federal Cheaper Home Batteries rebate reducing the upfront cost significantly in 2026, the financial barrier to adding storage has never been lower.
Keep records.
Store your installation certificate, CEC accreditation documents, equipment warranties, and any service records in one place. When it comes time to sell, handing these to your real estate agent gives buyers complete confidence in the system.
Highlight it in your listing.
Make sure your agent features the solar system prominently in the property listing. Energyefficient listings receive significantly more online views, so your agent should include system size, brand, installation year, and any remaining warranty clearly in the listing copy.
Is Now the Right Time to Install Solar in Australia?
For Australian homeowners weighing up the timing, the case for installing solar in 2026 is compelling on multiple levels.
The federal Smallscale Technology Certificate (STC) rebate still applies but reduces by one multiplier every 1 January until the scheme ends in 2030. A 6.6 kW system installed in 2026 earns STCs multiplied by 4 for 4 remaining full years. That same system installed in 2028 earns STCs multiplied by 2. Waiting reduces your rebate.
A 6.6 kW solar system in 2026 typically costs between $5,000 and $6,000 in most Australian states after the STC discount (including GST). This is one of the most affordable periods in history to install quality solar in Australia. Panel prices have fallen by around 15% compared to 2025.
At the same time, electricity prices continue to rise. Grid electricity in NSW costs between 35 and 45 cents per kWh in 2026 on most standard plans. Every year you delay installing solar is another year of paying full retail rates for electricity you could be generating from your roof for free.
Also, the property market continues to reward solarequipped homes. The NSW Government has announced a phased rollout of Home Energy Ratings, and the national NatHERS scheme is expanding to cover existing homes. As energy efficiency disclosure becomes mandatory in more states, homes without solar will face increasing pressure at sale time. Installing now ensures your home benefits from the premium rather than suffering the discount.
Frequently Asked Questions
Does solar increase property value in Australia?
Yes. Solar increases property value in Australia by an average of 2.7%, or approximately $23,100, according to Cotality’s analysis of over six million homes. In cities like Brisbane and Hobart, the premium exceeds $30,000.
How much does solar increase property value in Sydney?
According to the Cotality “Watts It Worth” report, solar adds an average of $19,179 to property values in Sydney. This figure reflects Sydney’s strong market activity and growing buyer preference for energyefficient homes.
Does a larger solar system add more property value?
Yes. Research indicates that each additional 1 kW of solar installed can increase a home’s value by up to $6,000. A 6.6 kW system therefore adds approximately $39,600, and a 10 kW system could add close to $60,000 in property value.
Does battery storage add value on top of solar panels?
Yes. Surveys show that 60% of Australian buyers are willing to pay more for a home with both solar panels and battery storage. A complete solarandbattery system is increasingly viewed as the new standard for an energyefficient home.
Do solar panels help homes sell faster?
Yes. Research shows that solarequipped homes attract 16.7% more buyer interest and sell approximately 4% faster than equivalent homes without solar. This can reduce days on market and support stronger negotiating positions for sellers.
Does solar increase rental property value and income?
Yes. Rental properties with solar earn an average of $19 more per week in rent, equating to approximately $988 in additional annual income. Combined with the capital value uplift, solar delivers returns for investors on two levels simultaneously.
What solar system size adds the most property value?
Research consistently shows that larger systems add more value. A 6.6 kW system is the most commonly installed size in Australia and strikes the best balance between upfront cost and measurable property premium. A 10 kW system adds further value and suits larger homes with higher energy consumption.
When is the best time to install solar in Australia?
The best time to install is now. The federal STC rebate decreases each year until 2030, meaning waiting increases your upfront cost. Property value premiums from solar are measurable and growing. Electricity prices continue to rise. Installing solar in 2026 maximises your rebate, reduces your bills immediately, and positions your home for the strongest possible sale premium.
Ready to Add Solar to Your Home?
Solar is one of the very few home improvements that pays you back twice: once through lower electricity bills every month, and again through a higher sale price when you decide to sell. The research is clear, the rebates are available now, and the property market is rewarding solarequipped homes with real, measurable premiums.
At Isolux Solar, our accredited team has helped thousands of Australian homeowners install quality solar systems across Sydney, NSW, Queensland, and beyond. We assess your home honestly, size your system correctly, handle all rebate paperwork, and install with CEC accredited professionals whose work adds genuine, lasting value to your property.
Book your free solar assessment today at isolux.com.au
