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True value solar Blog

Real Estate issues- Adding green certification will become mandatory

Although there are limited official statistics in this area, houses with lower annual utility bills sell for a higher price. In May 2011 Victoria houses for sale will have a compulsory star energy rating associated with them. This will soon become a Federal program. With the higher visibility of a home’s energy efficiency, you can be sure that more and more consumers will be looking to buy homes that are sustainable and will not need to be retrofitted in the future. The higher your energy rating the more valuable your house is deemed, for example, in the ACT 1 star adds 3.5% value to your home.  

The value of your home increases by at least the ‘improvement’ value – and remember that some of that improvement value will not be paid directly by you but by the State or Federal Government in the form of rebates. 

These financial benefits come in two forms:

1. Reducing short, medium and long term costs of electricity or other energy uses:

Electricity is expensive, and the 35% electricity price increase in the past three years has been significant. All reports in the media indicate that the cost of electricity will continue to rise across the board by 100% more between now and 2015.

2. Asset growth – your home becomes more valuable:

A solar panel system is low maintenance, assuring that ongoing costs are minimal. This means that the amount invested into your solar panel system will be returned to you if you sell your home. In addition, with the introduction of compulsory energy ratings on houses for sale (in Victoria at least), a solar panel system can ensure that the consumers who are looking for ‘greener’ homes will identify your home as an ideal purchase which in turn will guarantee greater interest from buyers.


  • Energy efficiency rating and house prices in the ACT. Australian Government- Department of Environment, water, Heritage and the Arts. It shows that the ACT housing market, which in 1999 became the first jurisdiction in Australia to introduce mandatory energy disclosure for all houses on the market, places a higher value on energy efficiency. The study looked at whether there a relationship exists between the energy efficiency rating of a house and sales prices using data from 2005 to 2006 and found that a statistically significant relationship does exists. Read more
  • Energy Efficiency. Council of Australian Government Read more
  • Will going green add value? Domain. September 14, 2010 Read more

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