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Large solar panels on the roof of subject property.

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There is a lot of pressure to start giving PV systems more value, even without market comps. Sandia National Lab has developed a pretty simple spread sheet to allow you to factor an adjustment using an income approach. I can see both sides of this argument. No comps equal no market, no market equals no value. Yet intuitively we all know that something that will produce income or offset expense adds value. The trick is how much?

http://energy.sandia.gov/?page_id=8047
 
All very good advice, I appreciate the input. I ended up doing what you guys suggested in explaining the crap out of it, but giving it no positive or negative adjustment.
 
Get ready for the wrath of the green gods to rain down on your head.
 
No green god here, but...

Panels do not last forever. There are large costs to removing and disposing of them. Check that out also.

Also, note that panels have a wattage output that is not consistent, but declines over time. You may hear the argument that the electric bill is going to go up so the HO is saving more money, however, the out put is becoming less.

And here, panels on the roof make for more maintenance issues in that leaves and melting snow get stuck behind the supports and rot or back up under the shingles.

Do you know the age of the panels? Their expected life and their expected output over the coming years?

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It's not much uglier than the tin roof, and you spend more time inside the house than looking at the roof, so I wouldn't consider it a detriment.
 
The solar panels you show appear to be Photo Voltaic which are electric generating systems .. did you notice, does the house have two electric meters?


Be careful regarding those who advocate solar panels diminish in productivity over time ... they typically have a 40 year warranty, their decrease in productivity is relatively minimal (they are nearly guaranteed not to be 100% efficient just based on how they are placed on that house), and for the most part their maintenance costs are limited to replacement of an inverter which will require replacement every five to seven years.
Make no mistake, their are expenses associated with the system, but they are not to the extent many would suggest and these systems are becoming more and more acceptable in many markets.

OOPS .. I just read your last post .... nothing more needs to be said other than, a personal pet peeve, appraisers do not GIVE value. Unfortunately I believe the appraisal you prepared may very well be misleading without a thorough market exporation and discussion with respect to the effects of solar panels on value. Sorry but, the GIVING word, does not rest well in my opinion. Sorry.
 
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Marion Rhodes said:
Here is a good study done in California
[URL]http://www.csudh.edu/oliver/smt310-handouts/solarpan/solarpan.htm[/URL]

Here is the industry review of information for a variety of types of panels. It is very comprehensive.

[URL]http://www.appropedia.org/Lifespan_and_Reliability_of_Solar_Photovoltaics_-_Literature_Review[/URL]
Click to expand...



Marion ... I looked at your first reference ... interesting in many instances. The author believes the panels in one example are tilted for run off ... I believe study will find they are tilted to increase solar gain thus making them more efficient. Other panels shown are vertical, laid flat, or below roof lines which do not allow for optimal solar gain ... of course these systems do not function as they should .... but make no mistake its not the panels its how they are installed ... sigh.

I will simply say in the market I am in, I have heard from other appraisers there is now market evidence buyers are willing to pay more for homes with PV systems. Perhaps not their full cost of installation but from the two I have spoken with who have done the studies, they are finding positive contribution from available market sales.

Obviously each market may be different.
 
I found a new tract in Santa Clarita that advertises solar panels and system included in your new house. Yeah, they're not attractive, but on that metal roof don't look so bod.
As far as saving on the electric bill, what's not to like?:shrug:
 
When your weather changes are from dry to drier, I expect you would see more benefit.

But if you read the entire first study, which was done in California, you will see that there is a problem with dust, dirt and a lack of rain.

The OP is from Oklahoma. I doubt their weather conditions are the same or even close to yours year round.

I know I was in OC one February and the winter wind cracked my leather shoes, that's how cold and windy it was.

Desert to plains, there is a difference.

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