Despite 1.25 million homes installing solar energy in Australia, agents appear to think it has limited appeal to buyers.
Real estate agents are not highlighting solar energy as a selling point when homes hit the market, according to research by RMIT University.
While energy efficient technologies like double glazing and insulation may be regarded as selling points in real estate sales, solar installations, which are just as environmentally and financially beneficial, are not on the radar.
RMIT property senior lecturer Neville Hurst said he was “perplexed” that solar was not seen as a selling point, and warned that ignoring the technology came at financial and environmental costs.
Despite energy prices soaring 63% in Victoria in recent years, agents appear to believe there is little market appetite for solar power, according to Hurst. He suggests government promotion could better educate the public about the benefits of solar energy.
“If there is market demand for solar from home buyers, it would be seen in advertising campaigns as real estate agents would promote technologies if they perceived a buyer demand,’’ Hurst said.
“Yet our research revealed that agents don't refer to these features in house sale ads and their reluctance to promote solar could impede long-term market and owner adoption of the technology."
Hurst studied the adoption of residential energy efficient technologies with Associate Professor Sara Wilkinson from the University of Technology in Sydney, scouring Melbourne’s real estate ads from July 2008 to June 2013.
They found that solar technology was not promoted in real-estate pitches.
“Australia is one of the sunniest continents on earth and electrical energy costs in Victoria have risen about 63% for the average home in recent years,” he said.
“There are about 1.25 million solar photovoltaic (PV) installations in Australia, and almost 13% of homes in Victoria are fitted with the technology.
“Yet our study showed agents and vendors believe they have limited appeal to prospective buyers."
Hurst said if energy costs continue to rise that could change.