How do you value Solar in a home appraisal?

[Elliott]

How much did your system cost? How much would it cost today? How much do you think it contributes in value?

I've noticed in the subdivision I mentioned and the homes are pretty homogeneous, price per square foot fall in a relatively close range (around $500/sf) and its hard to discern the value of solar since houses have differences in quality features and amenities like small swimming pools and views.

 

[Terrel L. Shields]

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.

Appraisers have a visceral distaste for valuing solar. Most are incompetent to do it. The correct way is with paired sales when they can confirm the sale included paid for panels (which is hard) or using the E savings calculator as taught by the Appraisal Institute. Some appraisers argue against this saying the savings method because there is a stigma to solar panels that the calculator cannot estimate. Perhaps.

As a person who recognizes savings as a plus, I think the calculator is fine in lieu of verifiable sales with panels. And there is the element of what is popular in your area. So, do you have a lot of sunny days? Does your line provider have a mandate on what they must pay you? Are there other such panels in the area?

My own experience in Arkansas and Oklahoma has been that I rarely seem more than 50% of the cost added to the property value and that diminishes with time. After 10 years (and we don't have a lot of 10-20 year old solar panels) they are viewed as a nominal value.

 

[MoistMitten]

IMO-how much is your savings per month? (all electric) x 12 months.
The advantage here would be the non-lease aspect of the equipment (in the bank/lender mind). Who is responsible for the maintenance? (impact negative/positive)
Also, bear in mind you may not get dollar for dollar value without a similar Sold Comp., and an adjustment may be limited to supporting factors.

Savings depends on usage of course, but it has the ability to save $6k/Year. Theres not really maintenance for something without moving parts... at least for 15 years or so.

It only cost 12k to put up as I did it myself with new panels and grid tie inverters. Its nice to only have one payment on a house with no utilities which Im sure is a draw.

I was just looking for the logic on how to value it so I have something to show the appraiser if they havent dealt with them before.

Roof is new and good for 50 years as its Owens Corning Duration.

Photo is right after I installed, wires are tied up properly.

 

[MoistMitten]

Appraisers have a visceral distaste for valuing solar. Most are incompetent to do it. The correct way is with paired sales when they can confirm the sale included paid for panels (which is hard) or using the E savings calculator as taught by the Appraisal Institute. Some appraisers argue against this saying the savings method because there is a stigma to solar panels that the calculator cannot estimate. Perhaps.

As a person who recognizes savings as a plus, I think the calculator is fine in lieu of verifiable sales with panels. And there is the element of what is popular in your area. So, do you have a lot of sunny days? Does your line provider have a mandate on what they must pay you? Are there other such panels in the area?

My own experience in Arkansas and Oklahoma has been that I rarely seem more than 50% of the cost added to the property value and that diminishes with time. After 10 years (and we don't have a lot of 10-20 year old solar panels) they are viewed as a nominal value.

Output is based on average hours of sun for the specific roof given the install angles and all other things considered.

See my install cost above... Its a very large system for the property to accommodate EV charging or connecting a camper full time. I received quotes for 60k to do it for cash and around 80K financed. I tried to use this as a method to show value a while back but it wasnt complete at the time so they were going to ignore it either way in terms of value add.

 

[Mark K]

I live in Indiana but lived in MI for several years. I think both states get about the same amount of solar energy and cloud cover.

From what I've experienced around here is that solar panels are a lot like pools. Some people really want them, some don't care, and some avoid them. Bottom line is that they are worth a lot more to some people than others but some even think of them as liabilities. We often get hail that's big enough to do serious damage.

Overall, around here there are not a lot of houses with solar but for those that sell, the contributory value seems to be minimal compared to their cost.

As a side note, I think that, like pools, their contributory value changes based on the overall value of the property. The higher the property value, the more they contribute.

 

[alebrewer]

Back in the early days, I would employ a DCF model to estimate the contributory value, as that is what market participants do. However, the bright folks at the GSE's determined that was not a valid approach to estimating contributory value. Thankfully that was more than 5 years ago. I no longer have records of those files...

 

[Carnivore]

How Many Solar Panels and Batteries to Be Net Zero?

Discover the perfect balance for achieving net zero with solar panels and batteries. Protect yourself from future rate hikes and maximize your ROI.

formesolar.com

https://singlefamily.fanniemae.com/media/23651/display

 

[Dublin ohio]

Theres not really maintenance for something without moving parts... at least for 15 years or so.

Inverter have been known to fail

t only cost 12k to put up as I did it myself with new panels and grid tie inverters

Not questioning you ability. But that could be an issue for a buyer. Most installers provide a warranty. What is the warranty on the panels and does self installation impact that warranty

Roof is new and good for 50 years as its Owens Corning Duration.

the typical life of solar panels is approx 25 yrs. Roofing life is somewhat dynamic when it comes to shingles

 

[Tim Hicks (Texas)]

We see a lot of thirty year roofs not make it five years in Texas. I also so saw some hail damaged solar panels in a close by subdivision and those panels were up there for at least 60 days broken.

 

[Carnivore]

ACEI d/b/a Calypso Continuing Education
PO Box 176

Appraising Energy Efficient Residential Properties (8/8)

www.calypsocontinuinged.com