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How do you value Solar in a home appraisal?

Joe Flacco said:
Why are new windows not adjusted for based on how much is saved on heating and cooling? How come new windows don't get a special separate adjustment?
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Why does evil exist in the world?

I feel you so many questions to ask.
 
i cant wait until the enterprizes ansi the appraiser into the new green world...
 
If solar installs in a given area are returning (lets say) half of their system cost upon resale then a system twice the normal size is going to return an even smaller percentage of it's costs. Even moreso if/when the systems aren't commonly returning anything.

One more observation; if none of the local brokers are familiar with the values of these systems then that also speaks to what they're capable of advising their buyers and sellers, so the buyers and sellers won't know either.

Notice that none of these listings mention the capacity of the system. Because the sellers apparently didn't press for that disclosure and it didn't matter enough to the brokers to ask the question in order to convey that info to prospective buyers.
 
Joe Flacco said:
Why are new windows not adjusted for based on how much is saved on heating and cooling? How come new windows don't get a special separate adjustment?
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I believe most house have the dual panel now, there is way no need to do the adjustment. If one day most house have the solar panel, then probably no need to do adjustment as well.
 
In the Palm Springs area, homes with pools are the standard. Homes without pools are the outliers. The last time I did one out there the difference in values were at or near the cost of a new pool install.
 
MoistMitten said:
I have a house Im planning to sell and I installed 16.8KW of solar on the house. Its bought and paid for which is a bit rare for panels now a days... My question is (preferable relatable to the Michigan market if its not universal) how do you value a paid for system? I have seen quotes online for 5-6k per KW of installed system in regards to home value, but is that the case (this is normally from solar friendly sites)? Is there some other metric that is used or standard to add that value when a comp doesnt exist?

The house is 100% electric and had a NET $0/m bill including charging a standard EV so there is definitely value there, but Im not sure how much or the logic behind it.
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1. In Northern California a 5 kW system costs about $12K before incentives, a 8.25 kW about $20K before incentives. You should get a rebate, and you can still get a 30% rebate, last time I checked.
2. How much you save depends on the cost of electricity in your area, and the average amount of sun you get at different periods of the year for the geographical location.
3. Also, some states like California, have special programs that provide a discount on electricty.
4. The price per kW for solar panels has supposedly been decreasing and is expected to continue decreasing.
5. You have to try to take into consideration market reaction to the amount of kW your subject system can generate year round. Most solar systems are expected to last 25 years, yet the productivity of newer systems keeep improving. Many owners will eschew an older system in favor of a newer system, so that an existing system may be considered a liability compared to a home without any solar panels. You didn't say how old your system was, but that is important.

A 16.8 Kw system in Northern California would probably cost after rebate somewhere over $30K. That seems like far more than most home owners could make good use of. So, based on the information you gave it is hard to say what it is worth. You really need to know the age of the panels, the manufacturer, the amount of kW actually produced throughout the year, and the specifics of how you are getting reimbursed for power you dump into the grid.

ChatGPT =====

Me: Do solar panels in Michigan make sense?

ChatGPT:

Yes, installing solar panels in Michigan makes a lot of sense for several reasons:

  1. Cost-Effectiveness: The average cost of a solar panel system in Michigan is around $15,955 before incentives, and this cost can significantly reduce after applying the 30% federal tax credit and other local incentives (EcoWatch) (EnergySage).
  2. Savings: Over a period of 20 years, you can expect to save approximately $15,582 on electricity costs with a typical 5 kW system. The average payback period for such investments is about 12.77 years, which is competitive compared to other states (EnergySage) (EnergySage).
  3. High Electricity Prices: Michigan has above-average electricity prices, which increases the cost savings from using solar power compared to states with lower electricity rates (EcoWatch) (Shine of Solar).
  4. Sunlight Availability: Despite its northern location, Michigan receives a sufficient amount of sunlight—about 2300 hours per year, which is adequate for efficient solar power generation. The state’s climate also allows solar panels to operate very efficiently due to cooler temperatures enhancing their performance (Shine of Solar).
  5. Incentives and Rebates: Besides the federal tax credit, Michigan offers additional state incentives and rebates that make solar installations more affordable. These incentives are aimed at reducing the upfront costs and improving the return on investment for homeowners who decide to go solar (Shine of Solar) (EnergySage).
Overall, while the initial cost might seem high, the combination of federal and state incentives, significant electricity savings, and Michigan's suitable climate conditions makes solar panels a worthwhile investment in the state.
 
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RCA said:
You didn't say how old your system was, but that is important.
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RCA said:
You really need to know the age of the panels, the manufacturer, the amount of kW actually produced throughout the year, and the specifics of how you are getting reimbursed for power you dump into the grid.
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So you didn't really pay attention to the OP's posts. Since it is obvious the OP knows all of the above and the panels are about a year old
 
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