Does Solar Increase Your Home’s Property Value in Australia?

 


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.

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