Off-the-grid solar and water security is becoming an expectation from home buyers
Enquiries from potential homebuyers regarding the power and water security of properties have become the norm.
According to the Seeff Uppers Team Lead Agent, Francois Venter, agents are being faced with questions on a daily basis about whether a property has solar, inverters, boreholes and water tanks. In addition, there is the question of how much this technology adds to the value of a home.
"Adding water and electricity security can help to maximise the market value of a home. And with the electricity and power crisis not going away, it is fast becoming an expectation, says Venter.
Will Solar Panels and Boreholes Add Value to a Home?
"To answer the question about how much value it adds, it stands to reason that if you didn't have it, you would need to install it. The approach should be to look at natural resource solutions like solar and boreholes as a long-term investment," says Venter.
Pressure on Cape Town's services is likely to increase as more people relocate to the Western Cape. On 20 February 2023, The City of Cape Town's Water and Sanitation Services reported that the dams servicing the city are only at a collective capacity of 56.8 % full, compared to 81.3%, during the same time last year.
"As the pressure on municipal grids increases, sustainability investments like solar panels will pay themselves off over time, while they also offer freedom from disruption," says Venter. If there is a silver lining, there are several public and private sector initiatives to help homeowners become more off-the-grid.
The City of Cape Town's Solar Panel Incentive to Homeowners
For Cape Town residents who have been considering investing in solar systems, the idea has recently become more attractive.
In a recent announcement by the City of Cape Town, homeowners who wish to produce their own solar power, without limit, now have the opportunity to sell it back to Cape Town's grid.
Further National Government and Private Sector Relief
In addition, the National Treasury has also just announced the availability of R4 billion in tax incentive relief. In short, it is offering a 25% rebate for solar installation to homeowners who install solar PV panels before 29 February 2024.
For instance, if a homeowner invests in 10 solar panels at R40 000, this could reduce their personal income tax for the year 2023/2024 by R10 000. There are, however, important restrictions and stipulations. The main one is that this rebate is capped at R15 000 regardless of how much is spent.
8 major points to bear in mind concerning the rebate for residential homeowners include the following:
- It is limited to solar PV panels and not installation costs or portable panels, batteries and
- inverters.
- Diesel generators do not qualify.
- Only new and unused panels will qualify.
- Only solar PV panels with a minimum capacity of 275W qualify.
- Only panels that are installed at a residence for domestic purposes qualify.
- Homeowners will need to prove installation and provide an electrical compliance certificate.
- The solar PV panels must be connected to the mains distribution of the private residence.
- The rebate is capped at R15 000.
There's no doubt, resources that have previously been taken for granted are becoming high-value items.
"It is encouraging to see how local and national government are prepared to partner with homeowners to provide incentives and relief. Apart from the major banks who all extend sustainability loans to assist with liquidity, there are also private companies who offer rental agreements and private funding for equipment, "concluded Venter.
