Exploring the Benefits: How Installing Solar Panels Can Increase Your Rental Property Value In Thailand
As we enter the year 2023, solar energy is becoming increasingly popular and hard to ignore. If you own a rental property in Thailand and are considering installing solar panels, you are not alone. Many property owners are looking to solar energy as a way to reduce utility costs and increase the value of their rental properties. But is it worth it? In this blog, we will delve into the potential benefits of solar panels for rental property owners in Thailand, as well as the factors to consider before making a decision to install them. By the end of this blog, you will have a clearer understanding of whether solar panels are a good investment for your rental property in Thailand.
Should I Consider Installing Solar Panels on My Property?
When considering whether or not to install solar panels on a rental property, it is important to carefully evaluate the potential financial benefits. This includes looking at the upfront cost of installation and the potential for reduced utility expenses in the long term. It may also be helpful to research any available tax incentives or credits that could help offset the initial cost of installation.
In addition to the potential for cost savings, there are other potential benefits of installing solar panels on a rental property. For example, solar panels can help attract environmentally conscious tenants who are interested in living in a more sustainable home. Solar panels can also increase the value of the rental property, making it more appealing to potential renters.
It is important to keep in mind that the potential benefits of solar panels may vary depending on the location of the rental property. In areas with a lot of sun exposure, solar panels are likely to be more effective at generating electricity. In addition, some states and localities may offer incentives or credits for installing solar panels, which can help offset the upfront cost.
Will Solar Panels Improve Your Rental Property Value in Thailand?
Thailand is one of the best countries in the world to look to solar power as an alternative source of energy with 2,600 hours of sunlight every year. A property with sufficient solar panels and a bank of batteries can easily be run independent of the grid. As a landlord, you can offer your tenants the chance to be free of electricity bills, which means you can charge a premium rent. In the competitive rental market of Phuket, being bill free is a great incentive for future tenants to choose your property over others, especially when looking at a long term rental situation. Also, should problems arise, there would be no issue of any cost to you regardless of the tenants energy use.
How Much Do Solar Panels Increase Property Value?
It’s impossible to be too specific as there are many variables involved in this such as the location of the property, the number of solar panels installed etc. However, research carried out by the National Renewable Energy Laboratory has shown that, in general terms, every dollar saved in energy bills adds twenty to the rental property’s value. As for how many panels to have, it has been shown that each kilowatt (kW) of solar installed equates to an increase of $5,911 on the value of the property. Meaning that if a 5kW system were to be installed, you should expect an increase in value in excess of $29,500.
Solar panels have become much more affordable in recent years leading to a shorter recuperation time, and they are a very good way of helping to future proof a property. There are however, other types of renovation which can increase the value of your property in order to attract tenants, and the pros and cons of each should be weighed up thoroughly.
Types of Solar Panels
Thailand is one of the best countries in the world to look to solar power as an alternative source of energy with 2,600 hours of sunlight every year. A property with sufficient solar panels and a bank of batteries can easily be run independent of the grid. As a landlord, you can offer your tenants the chance to be free of electricity bills. Which means you can charge a premium rent. In the competitive rental market of Phuket, being bill free is a great incentive for tenants to choose your property over others. Especially when looking at a long term rental situation. Also, should problems arise, there would be no issue of any cost to you regardless of the tenants energy use.
Yes, Solar Panels Will Improve Your Rental Property Value in Thailand
It’s important to gather information from reputable sources in order to make an informed decision, especially when it comes to investment. Being aware that solar panels can boost a property’s value, both rental and resale is useful information. At RIVERHOUSE Phuket, our professional opinions are based on expertise and experience. Given the recent energy situation, being powered solely by solar is a great selling point and will enhance your rental opportunities no end. With the uncertainty of future energy bills being what it is, tenants will jump at the chance of being self-sufficient and not having to pay ever-inflating bills.