Energy efficiencies are translating to six-figure property value gains, according to Domain

For those of us living the back country life, sustainability often comes naturally. But did you know that embracing energy-efficient features in your home isn't just good for the environment and your power bill, it's also a fast-track to significantly boosting your property's resale value?

A recent analysis by Domain, in their "Sustainability in Property Report 2025", reveals that buyer demand for energy-efficient homes is surging, with the potential to add hundreds of thousands to your property's worth.

Gone are the days when solar panels or energy-smart designs were considered niche. According to Dr. Nicola Powell, Domain's chief of research and economics, these features are now "mainstream" and a "top priority for property hunters."

In fact, the report found that buyers are actively willing to pay more for homes that boast these sustainable elements.

"Features like solar panels and energy-smart designs can add tens, even hundreds of thousands [of dollars] to a home’s value,” Dr. Powell states.

Her data shows that as of 2025, energy-efficient (EE) houses are selling for a remarkable 14.5 per cent more than their non-EE counterparts across Australia. This translates to a considerable financial difference, often exceeding $100,000.

While the exact figures vary by location, the trend is clear across the board.

For instance, Domain's report indicates that energy-efficient homes in Melbourne are commanding premiums of up to $197,000, with Sydney seeing an extra $180,500 and Brisbane a $120,000 boost. Even here in the regions, the impact is significant, with energy-efficient homes selling for an average of 21.3% more, representing a $135,000 difference.

This isn't just a city phenomenon. With over half of houses (52.2%) and nearly 40% of units (39.1%) sold across the nation in the past year featuring at least one energy-efficient element, it's clear that the market is shifting.

“Energy-smart design has shifted from nice-to-have to must-have,” Dr. Powell concludes.

For back country residents looking to sell in the future, or simply enhance their current living, investing in energy-efficient upgrades is no longer just an ethical choice; it's a shrewd financial one that can yield substantial returns. Consider solar panels, improved insulation, double-glazed windows, or energy-efficient appliances – these upgrades not only lower your running costs but significantly increase your property's appeal and value in a competitive market.