As ongoing loadshedding starts to bite deeper and electricity tariffs rise inexorably, interest among home buyers in properties with energy-saving features is picking up considerably. This is according to a survey (with 384 respondents) recently conducted among its agents by national real estate agency, Pam Golding Properties.
READ: Solar Power | Will buyers pay more for solar-powered homes?
Not surprisingly, says Dr. Andrew Golding, chief executive of the Pam Golding Property group, given the severity of loadshedding, the most popular ‘green’ feature buyers are currently looking for is solar, with more than a third (35.4%) of all votes.
Says Dr. Golding: “This was followed by boreholes and JoJo tanks, which is a pertinent reminder that water remains an issue in much of the country.
“The survey also clearly indicated that for sellers, having alternative power and water storage will sway the decision their way when a buyer is weighing up two similar properties.
“The result is that we are seeing that properties with ‘green’ features such as these sell quicker than those without. Buyers tend to prioritise by viewing these properties first – they welcome the fact that all the work is already done, which adds considerable appeal.
“Notably almost a quarter of the respondents in our survey indicated that more than 50% of their home buyers are asking for solar and other green features when buying a home.”
Adds Dr Golding: “Encouragingly for sellers, the survey also revealed that 68.8% of home buyers would pay a premium for a home with green features, making green solutions like solar an increasingly important driver of the price that sellers are able to achieve for their properties.
Would pay a premium:
“In addition, the survey showed that 55.2% of our agents stated that home owners were adding green features not only for their own benefit, but also in order to make their homes more marketable when the time comes to sell. While it is difficult to quantify the actual value-add in monetary terms, having back-up power and water supply solutions certainly makes homes more appealing and more sellable.
“While going off the grid is the ideal situation, it is apparent, however, that affordability is an issue for many consumers, and understandably so, particularly in the instance of first-time home buyers. As a result, currently the focus for home owners is primarily on offsetting the effects of loadshedding, with water a secondary concern for most.”
Interestingly, in line with international green financing trends, some banks in South Africa now extend preferential terms loans by offering lower interest rates on green-certified home loans.
Concludes Dr Golding: “For high-end buyers, being as far off the grid as possible is a key imperative, while in the middle price ranges, the buyer is happy if the alternate energy keeps them free of loadshedding for most of their needs. Needless to say, green features are a big plus for any home.”
READ: Is a compliance certificate required when solar energy is used?
An article published on Property24 on March 3, 2022, features Ryan Steytler, chief operating officer of Hohm Energy, who says, faced with mounting energy costs, many homeowners think that going entirely off grid is the only solution.
Unfortunately, this is often too expensive. It’s, therefore, more feasible to make adjustments to your home’s energy consumption so that you can introduce solar energy solutions with a hybrid battery system that will augment Eskom or your municipality’s supply - rather than replacing it entirely, says Steytler.
Steytler suggests the following six ways to prepare your home for solar energy:
1. Know your energy needs
Interrogate your monthly electricity bill so that you have an idea of your annual energy consumption. The account will show your usage in kilowatt hours (kWh). This will indicate when your electricity bill spikes - it could be in winter when you are using heaters, for example.
Look at other ways of reducing the amount of electricity you use. This may mean switching to LED bulbs or changing the timer on your geyser so that it only heats up when you expect to need warm water.
A geyser can account for 40 to 60% of your electricity bill each month. By installing a geyser timer, you can regulate that the geyser is off during peak times. A geyser blanket will maintain the heat in your geyser so that it does not need to be switched on as often.
The simplest solar system for residential use is a grid-tied solar PV system, which is installed to be tied to the grid or network. This means that you save on your electricity bills as you use solar energy during peak hours, and rely on the grid during off-peak times at night, or when the weather is overcast.
2. Make the necessary repairs to your home
Most homeowners opt for rooftop solar PV systems, so make sure your roof does not have any damaged tiles or rust that would make it difficult to install a solar system.
Also look out for water damage that could affect your roof’s structural integrity. Repair any visible cracks and consider replacing your roof if it is reaching the end of its lifespan. Having to remove your solar panels should there be a need to replace the roof in a few years’ time will be an additional cost.
3. Do roof mapping to assess your rooftop’s solar potential
Measure the parameters of your roof to calculate the solar potential of your home. Hohm Energy’s platform will estimate how many solar panels you can accommodate and how much power they will generate, based on the space available.
Decide on the type of rooftop PV system to install:
The most common way to differentiate a solar rooftop installation is via the connection to the electrical load/grid.
- Grid-Tied / Connected with reverse power blocking: The property is connected to the national grid but blocks any excess electricity generated from feeding back onto the grid.
- Grid Tied / Connected: Electricity generated can be used at the property and any surplus can be directed back into the grid. In some cases, this feedback is compensated for.
- Off-Grid / Standalone: Off-grid PV systems usually have batteries and a charge controller and. The PV system generates electricity for use onsite and operates completely independent of the national grid.
SEE: Switching to Solar | What you need to know
4. Find an accredited solar installer and consider several quotes
“As residential solar use becomes more popular, we are seeing more companies popping up claiming to be solar installers, says Steytler.
It’s best to work with a service provider that is accredited by the South African PV Industry Association’s (SAPVIA) PV Green Card programme for solar installers.
SAPVIA Spokesperson, Maloba Tshehla, explains: “Using accredited installers is critical, not just for your peace of mind, but to also ensure the safety of your installation for your home and the wider grid. By using a PVGC accredited installer, you are powering a more responsible and secure, renewable energy future.”
Also, consider quotes from more than one solar installer. Online applications make it easy to obtain a competitive no-obligation quote from a network of vetted installers, tailored to your needs, within minutes.
5. Secure finance for your solar installation
While it is often possible to access your bond at a lower interest rate to pay for a solar system, some companies offer finance options. Lease or rental finance will allow you to use the solar system and benefit from lower energy bills, without actually owning the system. Whatever finance route you choose to take, also include an all-inclusive maintenance and service plan.
Steytler says the cost of your solar PV system is dependent on the size of your home, the amount of roof space available and the kind of solar PV system you want. The savings also depend on the cost of electricity based on which municipality provides you with electricity at the moment.
Generally, it takes four to nine years to pay off the solar system. So while the cost of electricity is going to increase significantly over the next five years, you should be able to pay off your solar system well within that time; giving you a reliable source of power at no additional cost.
6. Get the necessary approvals
Make sure you have the required municipal approvals for the solar system. Also, find out if you need to obtain neighbourhood or Homeowners' Association approval if you live in an estate or a complex.
To get the most from your rooftop PV solar system, it’s best to make your home as energy-efficient as possible, and to have a clear overview of your energy needs, says Steytler.
Not happy with your installation?
If you are not satisfied with the installation you can request an inspection from an authorized inspection authority (AIA) registered with the Department of Labor, the ECASA ombudsman or an independent consultant.
Want all the latest property news and curated hot property listings sent directly to your inbox? Register for Property24’s Hot Properties, Lifestyle and Weekly Property Trends newsletters or follow us on Twitter, Instagram or Facebook.
Print
