Overview
- Homes with solar power systems are valued at around 2.7% more than comparable homes without, which equates to a national average of approximately $23,100.
- Each additional estimated NatHERS star rating is linked to a median uplift of 1.3% in a home's value nationally, or roughly $10,560.
- Nationally, 29% of houses have rooftop solar systems installed. Coverage exceeds 40% in cities like Perth, Adelaide and Brisbane, while Hobart, Regional Victoria and Regional Tasmania fall below 20%.
Homes with solar power systems are valued at around 2.7% 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", highlight how energy performance is becoming a key factor in how properties are appraised, financed, and sold.
This research comes at a crucial time for Australia, as rising energy costs and growing consumer awareness place a spotlight on the financial benefits of energy-efficient homes.
The report, which is developed in collaboration with Proptech Australia and welcomed by Commonwealth Bank (CBA), analyses more than six million homes and reveals a clear link between energy-efficient upgrades and property value.
The solar uplift: A tangible value for homeowners
The study found 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 percentage uplift seen in Regional Northern Territory at 6.9%, 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.
“Our findings highlight 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,” said Tom Coad, Senior Director, Banking and Finance at Cotality Australia.
Uplift from solar
The efficiency premium: A new benchmark for value
The report also quantified the value of a property’s estimated energy efficiency rating, a metric that has been historically absent from valuation models.
Using Cotality’s Energy Efficiency Portfolio Analytics, the analysis showed that each additional estimated NatHERS star rating was linked to a median uplift of 1.3% 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.
How much does an extra efficiency star rating add to the value of a house?
This ability to consistently measure and quantify energy performance marks a turning point. With almost 70% of Australia’s housing stock sitting below four stars, these underperforming homes represent both an upgrade opportunity and a growing source of exposure for owners and investors.
CBA’s Retail Bank ESG Lead, Ben Brazier said: “As Australia’s largest home lender, we understand the important role solar and energy-efficient upgrades can play in improving a home’s energy efficiency and helping to reduce energy costs.
“Cotality’s research provides insights into the benefits of solar and energy efficiency improvements.
“As part of our commitment to helping our customers and supporting Australia’s transition to net zero, we are supportive of research which can help Australians make informed decisions when it comes to the value of a property.”
These findings come as Australia enters a new phase of energy transparency.
While the ACT remains the only jurisdiction with mandatory energy rating disclosure at point of sale or lease, other states are following suit. The NSW Government has announced a phased rollout of Home Energy Ratings, and the national NatHERS scheme is expanding to cover existing homes.
"As the housing market continues to gain value and expectations for comfort, ongoing affordability, and sustainability evolve, the findings from this report highlight a broader shift in how value is perceived, and signal a future where performance is priced as prominently as postcode," Tom Coad added.
Solar coverage across Australia
The report also reveals that solar uptake varies widely across the country.
Nationally, 29% of houses have rooftop solar systems installed. Coverage exceeds 40% in cities like Perth, Adelaide and Brisbane, while Hobart, Regional Victoria and Regional Tasmania fall below 20%.
In some suburbs, solar is becoming the norm. Bungarribee in Sydney leads the nation, with 96% of detached homes featuring rooftop solar. Many of these high-coverage areas are newer housing estates or rural residential zones, where detached homes dominate and roof space is more conducive to solar installation.
This 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.
