The persistent threat of load-shedding, escalating electricity costs, and a growing awareness of environmental issues, energy-efficient homes have moved from “nice-to-have” to “must-have” in South Africa’s residential property market.
READ: SA’s property hotspots and cold zones: Where growth is happening in Pretoria east and beyond
According to Antonie Goosen, principal and founder of Meridian Realty, properties with solar and other green features are increasingly in demand, and sellers without them may find themselves left behind.
“Energy efficiency is no longer just about saving on utility bills. It’s about independence from an unstable grid, improving comfort and convenience, and ultimately, boosting resale value,” says Goosen. “In 2025, solar installations and backup power are at the top of most buyers’ wish lists.”
Power insecurity reshapes buyer priorities
Goosen says the threat of load-shedding and its impact on property decisions cannot be overstated. “When buyers walk through a home, one of their first questions is: ‘Does it have solar or an inverter?’ If the answer is no, many walk away.”
While municipal electricity remains unreliable, solar installations and hybrid backup systems offer practical and psychological relief. “Buyers are no longer willing to compromise on basic functionality. Being able to keep the lights on, power a Wi-Fi router, or run a fridge during outages is critical.”
Energy-efficient homes command higher prices
The financial return on green investments is becoming clearer. “Homes with solar panels, gas appliances, energy-saving lighting and insulation often sell faster and fetch higher prices,” Goosen explains. “Buyers perceive these features as valuable assets, especially if the systems are professionally installed and well-maintained.”
However, Goosen notes that not all upgrades are created equal. “A full off-grid solar setup adds serious value, but so do smaller, targeted improvements like a solar geyser or an inverter with battery backup. It’s about reducing reliance on the grid, not necessarily disconnecting entirely.”
He adds that green features are especially important in lifestyle and retirement estates. “In these markets, sustainability and convenience go hand-in-hand. Buyers are willing to pay a premium for homes that reduce their running costs and environmental footprint.”
Buyers are doing their homework
Today’s property buyers are more informed than ever. “They want to see electricity bills, know the age of the solar system, and understand how it’s been maintained. They’re comparing the cost of upgrading a home without green features to buying one that already has them.
“This has shifted the competitive landscape. If your home doesn’t have any energy-efficient elements, you may need to drop your asking price, or make those upgrades before going to market,” says Goosen.
READ: Stay warm and cosy in these 5 beautiful coastal homes
Compliance matters: Certificates you may need
As more homeowners withdraw from the grid and install alternative or renewable energy systems in their homes such as solar panels, there is some confusion about electrical certificates and whether they are required for these systems when buying or selling property.
According to the Conveyancing and Property Law team at Abrahams & Gross, electrical certificates are regulated by the Electrical Installation Regulations. These provide that every user or lessor of an electrical installation must have a valid certificate. When a property is sold, the owner must provide the buyer with an electrical certificate not older than two years.
READ: Is a compliance certificate required when solar energy is used?
These certificates are always required before lodgement in the Deeds Office. Some banks will even scrutinise the Certificate of Compliance before issuing guarantees. It’s vital to avoid invalid certificates, as banks and buyers will likely detect them - leading to delays, disputes, or additional inspections.
How does solar fit in?
The Regulations define “electrical installation” broadly, and there is nothing that excludes solar control circuits from being covered. This means a compliance certificate is still required in most cases where solar power is used. In fact, the prescribed Certificate of Compliance (CoC) in the Regulations generally includes solar panel installations.
Without much legal clarity, a cautious and sensible approach is to ensure a CoC is issued for solar systems. This also has insurance implications, as some insurers require certified systems to validate claims.
Other compliance certificates buyers and sellers should know about include:
- Electrical Fence Certificate: Required under the Occupational Health & Safety Act, and particularly tricky in sectional title properties.
- Water Certificate: Required in Cape Town before transfer, per a 2011 municipal by-law.
- Gas Certificate: Mandated under the Pressure Equipment Regulations for properties with gas appliances.
Solar installation 101: What to do before and after you install
If you’re considering solar, don’t dive in blind. Orlando Luis, CEO of Brights Hardware, outlines the steps:
Step 1 – Do your homework
- Reduce electricity usage first: Switch to gas appliances, LED lights, and reduce use of high-consumption items.
- Set goals: Backup for load-shedding or full independence?
- Measure consumption: Use your electricity bill to determine system size.
- Choose a reputable installer: Ensure they’re certified, provide aftersales support, and can issue a valid CoC.
Step 2 – Choose panels and batteries wisely
- Lithium-ion batteries are preferred for longer lifespan, despite higher cost.
- Consider monocrystalline vs. polycrystalline panels - monocrystalline is more efficient.
- Look at power ratings, efficiency, ISO certifications, and manufacturer warranties.
Step 3 – Post-installation steps
- Systems tied to the grid must be signed off by a professional engineer registered with ECSA and registered with your local municipality.
- Notify your insurer and confirm system coverage.
Using unqualified personnel or non-compliant equipment can void insurance and damage your home. Roof size, slope, and complex rules (e.g. body corporates) also need consideration before going solar.
Challenges and misconceptions
Despite the benefits, Goosen acknowledges that the upfront cost of solar and energy-efficient installations can be a barrier. “For sellers, the investment needs to be balanced against the potential return. For buyers, it’s about affordability and financing options.”
Fortunately, several banks and financial institutions now offer green home loans or solar financing options. “There’s growing support in the industry to make energy efficiency more accessible, especially for middle-income households,” says Goosen.
READ: 4 tips for arranging furniture in a living room, and 7 ways to brighten it up
Another misconception is that green homes are only for the wealthy. “That’s no longer true. Even entry-level homes can benefit from energy-efficient upgrades, like installing LED lighting, gas hobs, or water-wise fittings. It’s about starting somewhere.”
A long-term shift, not a short-term trend
Goosen believes the move toward energy-efficient homes is a structural change in the market. “We’re seeing developers include solar and greywater systems as standard features. Municipal incentives and green certifications are on the rise. And more buyers are asking for proof of a property’s energy performance.”
In fact, Goosen predicts that within the next five years, energy inefficiency will become a liability. “Much like having no fibre connectivity today, a home without solar or backup power will struggle to attract serious offers.”
Final thoughts: Adapt or fall behind
Goosen’s message to homeowners is clear: “If you’re planning to sell in the next year or two, start planning your energy upgrades now. Not only will they make your life easier while you live there, but they’ll also position your home better in a competitive market. For buyers this means not just looking at the price tag but also looking at long-term value. A slightly more expensive home with proper energy solutions could save you thousands every year and shield you from ongoing disruption.”
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.
