Solar panels and green homes are becoming increasingly more common in the marketplace.
Appraisal value of solar panels.
So the cost of the system in 2009 was 60 000.
Lenders are responsible for ensuring the appraiser has accurate information about the ownership structure of the solar panels and that the appraisal appropriately addresses any impact to the property s value.
This was accurate back in 2009 when solar prices were more than double what they are today.
Many appraisers are taking the position that there is no added value and perhaps some diminished value with leased solar panels because the buyer must assume the lease.
One way to show value for solar panels is to write them as a line item in the sales comparison grid within the appraisal report if the following two criteria are met.
Pv value can estimate the production or establish a wattage needed to produce the energy at a location and develop a value conclusion using the cost and income approaches.
If the solar panel system is owned and at least one comparable sale used in the appraisal report also has and owned solar panel system then the solar panels can be adjusted within the sales comparison grid showing value.
Miller points out however that added value is not so cut and dried.
It is designed to be used by skilled appraisers consultants with knowledge of solar and a discounted cash flow.
The appraiser emphasized that solar panels are a new arena for appraisers the issue simply hasn t been around long enough for there to be a consensus on how to value the addition of the panels.
So if you save 2000 on your rooftop solar panels system your home will appreciate by 40 000.
In other words a solar energy system that saves 400 per year would add a value of 8 000 to your home.
Determining the value of solar panels is an issue that has many appraisers asking questions.
The 40 000 appreciation makes sense when compared to the total cost of the system.
The national renewable energy laboratory cites a study in the appraisal journal which shows that home value increases 20 for every 1 reduction in annual utility bills.
Whether the solar panels are leased and owned also may affect the appraisal.