Australia’s housing market is at a turning point. Energy performance, once a peripheral consideration, is now a measurable driver of property value.
The Watts it Worth report by Cotality, supported by CommBank and CSIRO’s RapidRate™ tool, provides the most comprehensive analysis to date of how solar power systems and energy efficiency ratings influence home prices.
Drawing on data from over six million homes, the findings confirm what many suspected: energy-efficient upgrades deliver not only long-term savings and comfort, but also price premiums at a time when cost-of-living concerns dominate buyer decisions and transparency around energy efficiency is relevant.
Key Insights from the Report
Solar and Energy Efficiency Pay Off
Solar Power Systems
Homes with rooftop solar are valued 2.7% higher nationally, equating to an average uplift of $23,100. In some regions, the premium is even greater:
- Northern Territory: +6.9% (~$31,350)
- Hobart: +5.4% (~$30,459)
Solar is one of the few upgrades that is visible, measurable, and warrantied, making it a standout feature in valuation models.
Energy Efficiency Ratings (NatHERS)
Each additional star adds 1.3% to property value, or about $10,560 nationally. Regional variations include:
- Darwin: +4.5% per star
- Regional South Australia: +2.7%
- Sydney: ~$21,000 per star
With 70% of homes below four stars, the upgrade opportunity and risk exposure are significant.
Regional Variations
Solar adoption is highest in Perth, Adelaide, and Brisbane (over 40%), while Hobart and regional Tasmania lag below 20%. These trends highlight opportunities for homeowners in less saturated markets.
Why This Matters Now
While energy costs remain elevated, and household budgets are under pressure, buyers increasingly seek homes that offer:
- Lower running costs through reduced energy bills
- Improved comfort and health via better insulation and ventilation
- Resilience against rising energy prices and regulatory changes
These preferences are shaping search behaviour, marketing strategies, and lending products. Developers are responding by incorporating solar and efficiency features as standard inclusions, while governments move toward mandatory energy ratings at point of sale (ACT already requires this; NSW trials are underway).
Broader Benefits Beyond Value
Energy-efficient homes offer more than just higher sale prices, they deliver tangible benefits for owners and communities.
- Financial Security: Lower bills and higher resale value
- Environmental Impact: Energy-efficient features and upgrades cut emissions and protect the environment
- Market Transparency: Standardised energy ratings empower informed decisions
- Future-Proofing: Homes with strong energy credentials are better positioned for regulatory shifts and climate resilience
Impacts Across the Property Ecosystem
As energy efficiency moves from a “nice-to-have” to a core value driver, every player in the property ecosystem, from homeowners to policy makers, faces new opportunities and responsibilities.
- Homeowners: Upgrades deliver measurable returns and comfort
- Lenders: Energy performance data supports ESG reporting and green finance products
- Developers & Agents: Energy features are now a key selling point, not an optional extra
- Policy Makers: Evidence strengthens the case for disclosure mandates and incentives
The Valuation Lens
At Acumentis, we incorporate sustainability factors into our valuations to give clients a clear picture of how energy efficiency impacts marketability and long-term value. Whether you’re renovating or preparing to buy or sell, understanding these dynamics can be beneficial.
Understand Your Property’s Green Value
Contact Acumentis for a comprehensive valuation that factors in energy efficiency and sustainability trends.