Watt’s it worth? Plenty

Homes with solar power systems are valued at around 2.7 per cent more than comparable homes without, according to a new report from Cotality.

That equates to an average uplift of approximately $23,100 at a national level.

The findings, from ‘Watt's it Worth: Quantifying the value of solar and energy efficiency ratings in real estate’, show how energy performance is becoming a key factor in how properties are appraised, financed, and sold.

The report analysed more than six million homes, finding a consistent price premium associated with the presence of solar power systems, a highly visible and widely adopted home upgrade.

Regionally, the impact varies significantly, with the highest uplift in Regional Northern Territory at 6.9 per cent, or about $31,350. In dollar terms, the uplift for a home with solar ranged from $14,093 in Adelaide to $30,459 in Hobart, reflecting buyer demand for energy-saving features.

Senior Director, Banking and Finance at Cotality Australia Tom Coad says the findings show that homes with energy and efficiency upgrades are delivering not only long-term energy bill savings and comfort, but also measurable price premiums at a time when cost-of-living concerns are top of mind for Australians.

The analysis showed that each additional estimated NatHERS star rating was linked to a median uplift of 1.3 per cent in estimated home value nationally, or approximately $10,560. The premium varied by location, ranging from $3,749 per star in Brisbane to $32,946 per star in Darwin.

With almost 70 per cent of Australia’s housing stock sitting below four stars, underperforming homes represent both an upgrade opportunity and a growing source of exposure for owners and investors.

The report also revealed that solar uptake varies widely across the country. Nationally, 29 per cent of houses have rooftop solar systems installed. Coverage exceeds 40 per cent in cities like Perth, Adelaide and Brisbane, while Hobart, Regional Victoria and Regional Tasmania fall below 20 per cent.

Growing penetration is being driven by a mix of environmental conditions, policy incentives, and builder practices. In many new developments, rooftop solar is now included as part of the standard building package—further embedding energy performance into the housing market.