Is Installing Solar on your Adelaide Property Still Worth It?

Considering installing solar on your home or investment property in Adelaide? You’re not alone.

Solar energy has been a game-changer for many Australians.

However, recent trends have made potential investors more cautious. Feed-in tariffs have significantly decreased, upfront costs remain high and federal solar rebates have also been scaled back.

Yet, power prices continue to rise, increasing the appeal of solar energy for some.

So with many homeowners and property investors still weighing up the benefits and costs of solar energy, the question remains: is installing solar still worth it?

Costs and savings

One of the main concerns for homeowners and property investors alike is the significant upfront cost of installing solar panels.

These costs can vary widely based on the size of the system and the specific needs of the property.

However, the potential for long-term savings can be significant.

Over time, solar panels can drastically reduce electricity bills, offsetting the initial investment.

Natalie Jones, Sales Director at We Connect Property, notes, "The initial investment can definitely seem daunting, but when you consider the long-term savings on your energy bills, solar panels often pay for themselves within a few years."

Another major concern that has emerged in recent years is the issue of declining feed-in tariffs.

"Dwindling feed-in tariffs have definitely caused some apprehension,” says Natalie.

“But even with lower feed-in tariffs, the reduction in electricity bills over a 10 to 15 year period can be substantial – especially if the focus is on self-consumption of the electricity you generate, via storage in a battery, rather than selling it back to the grid,” she says.

Benefits of solar for owner-occupier homeowners

For owner-occupiers, solar panels offer a range of benefits beyond just financial savings.

One of the key advantages is energy independence.

With solar panels, homeowners can produce their own electricity, reducing their reliance on the grid and insulating themselves from both rising energy prices and the ever-increasing threat of major blackouts.

Environmental impact is another thing many see as a benefit, especially with climate change becoming an increasingly relevant topic.

Solar energy is a clean, renewable resource that reduces the carbon footprint of a home.

And finally, another great incentive to have solar panels installed? Increased property value.

Homes with solar installations are often more attractive to buyers, who see the potential for reduced energy bills and a smaller environmental footprint.

Natalie adds, "Owner-occupiers see a direct benefit not only in their monthly bills but also in their property’s market appeal when time comes to sell.

“Buyers are increasingly interested in whether a home has solar or not. Which is why, in such a competitive real estate market, having solar installed can be a significant selling point."

Benefits of solar for investment property owners

Investment property owners have a unique set of considerations when it comes to installing solar panels.

Like owner-occupiers, some landlords might shy away from installing solar due to the upfront costs and concerns about the return on investment. They might worry about how quickly the investment will pay off, especially if tenants are the ones benefiting from the lower energy bills rather than the property owners themselves.

But this in and of itself becomes a benefit when you’re considering the ability to attract quality tenants to the property.

Properties with solar panels can be marketed as energy-efficient, offering potential savings on electricity bills for tenants.

As Natalie points out, " For landlords, solar can be a value-add feature that makes your rental property more desirable, and stand out in a competitive market. That’s because tenants are increasingly looking for energy-efficient homes to help manage their living costs, which are also rising exponentially."

Additionally, there are attractive tax incentives available for landlords who install solar panels on their rental properties.

These incentives can help offset the initial installation costs and improve the return on investment over the long term.

Government rebates and incentives

When it comes to installing solar – whether you’re an owner-occupier or landlord – there are often rebates and incentives available from both state and federal governments that can help reduce the upfront costs of both panels and batteries too.

So it’s important to check out what is available before you decide to take the plunge.

Natalie advises, "It's crucial to stay informed about available rebates and incentives. They can make a big difference in the overall cost and savings of your solar investment,” Natalie advises.

Keeping an eye on the Australian government’s Solar Consumer Guide will make sure you’re across what’s available nationally: https://www.energy.gov.au/solar/switch-solar-power

While the SA State Government posts updates on their Energy & Environment page: https://www.sa.gov.au/topics/energy-and-environment

Common concerns and misconceptions

Despite the benefits, some common concerns and misconceptions deter people from installing solar panels.

High initial costs are often cited, but it’s important to consider the long-term savings and potential rebates that can alleviate this burden.

There’s also a perception that declining feed-in tariffs make solar less worthwhile.

Durability and maintenance are other concerns. However, modern solar panels – if sourced from reputable installers - are built to last and require minimal maintenance, making them a reliable long-term investment.

Natalie concludes, "Many of the concerns about solar panels stem from outdated information. The technology and financial landscape have evolved, making solar a more viable option than ever.

“If you do decide to go ahead, make sure you find a reputable solar installer. Ask friends and family for recommendations, check out respected consumer review pages like Choice, read independent online testimonials and always find out about product warranties and guarantees to make sure you choose a reliable company.”

So, is installing solar on your home or investment property in Adelaide still worth it?

While some reservations may give you pause, the long-term savings, environmental benefits and potential for increased property value make a compelling case for solar energy.

For homeowners, solar offers energy independence and a potential property value boost. For investment property owners, it can attract tenants and provide tax incentives too.

While government rebates and incentives further enhance the financial viability of solar installations.

Ultimately, the decision to install solar in your Adelaide property should be based on your specific situation and long-term goals.

And if you want to know more about any of these things, a good place to start is with an experienced local real estate agent or property manager, who’ll be able to give you up-to-date, real world advice and guidance around how solar can positively impact a property.

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DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.