How solar adds value to your property
Government is considering legislation that could allow homeowners to sell their surplus solar power back to the grid.
“With the recent announcement of a tax rebate for solar installations, homeowners have to explore the advantages of solar power,“ said Antonie Goosen, principal and founder of Meridian Realty.
“South Africa’s electricity crisis has made it crucial for households to consider alternative energy solutions. Solar power offers a viable and sustainable solution, and with the government’s tax rebate, it alleviates the financial burden of installation.“
Goosen explained the government tax rebate for solar installations allows homeowners to claim up to 25% of the cost of solar photovoltaic (PV) panels. The maximum rebate is R15 000 and applies to new and unused solar PV panels with a minimum capacity of 275W per panel.
This incentive is designed to reduce pressure on the national power grid and promote the adoption of renewable energy sources.
Homeowners can take advantage of this opportunity, as the tax benefit will be available for 12 months starting from March 1.
Solar installations not only offer a relatively quick and silent installation but also have the potential to lower future energy bills and benefit the environment.
The upfront costs of solar power installations hinders many homeowners, even with the current tax incentives.
Various financing options are available to make solar power more accessible and affordable.
Homeowners may increase their existing home loans to cover the cost of installing solar panels, allowing them to spread the investment over a longer period.
Additionally, new homeowners can apply for financing from the beginning of the home-buying process.
Rental options for solar power systems are available through certain financial institutions.
Goosen said the worldwide demand for solar power solutions has led to a variety of options available and a significant drop in costs.
In South Africa, this increasing demand has resulted in several specialist financing options available, making solar installations more affordable and accessible.”
Investing in solar power can have a positive impact on property values. Studies conducted by the South African
Photovoltaic Industry Association (SAPVIA) have shown that solar installations can increase the value of a property by around 3% to 4%.
“I believe these estimates are still conservative and it can increase the value by as much as 8%.”
According to SAPVIA, the installation of solar panels provides potential buyers with the assurance of reduced energy costs and a more sustainable lifestyle.
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This appeal is significant in South Africa, where electricity outages and escalating electricity prices have started to inhibit the uninterrupted functioning of households.
Solar panels have proven to have a long life span and require little maintenance, providing homeowners with a reliable and low-maintenance energy solution.
Solar solutions are also becoming more versatile, with options available to address small-scale requirements such as outdoor lighting, mid-level solutions like solar geysers to cut the cost of heating water, and major solar solutions that can take a home off the electricity grid.
In addition, the government is considering legislation that could allow homeowners to sell their surplus solar power back to the grid, further increasing the financial benefits of solar installations.
Solar power solutions are scalable, which means homeowners can easily add extra solar panels or batteries as finances become available or household demand increases.
Solar power is environmentally friendly, enabling homeowners to reduce the carbon footprint of their homes.
To maximise the benefits of solar investments, Goosen recommended that those wanting to install solar to consider their financing option wisely. They also have to consider the size of the installation to maximize electricity generation and comfort.
“It is imperative to use a reputable provider and to install a hybrid solution that combines solar panels, a smart inverter, and a battery for efficient energy usage and load-shedding resilience. Install the panels in the optimal area that gets the most sun, for example, a north-facing roof.
“By embracing solar power, homeowners can not only contribute to a sustainable future but also significantly increase the value of their properties,” concluded Goosen.
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