- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
- North Carolina
Well that is a problem about the minutia. Appraisers have to be very careful when they deal with certain lenders. It gets worse when the order comes through a AMC Oligarch. You can imagine the crap I hear from them. i.e. We just want you to include the Contributory Value as a Separate Line Item. REALLY! If they are leased then the only contributory value is the savings on the power bill. Meaning it reduces the Borrowers Payments/outlay to Live. It is a Debt load just like a Credit Card, Car Payments etc. We Appraise Property Rights. We don't get into Qualifying a Borrower for a Mortgage.This whole gnarly mess is pretty much a moot point if you are appraising for F/F. They are pretty clear and specific on solar panels. Feel free to get lost in the minutiae of the fine details of prepaid leases and when they become a part of real estate etc.
Now if they want I can analysis as a separate assignment(money for me) the Cash Flow or more accurately the Net cash after the lease payment. This wont work well in NC because Duke Energy uses Net Metering. There is two ways net metering is done. In NC you only receive credit for the Electrict Bill. Excess is carried over to the next bill and so on BUT it is on a One year Cycle. July to June. On July 1 any excess from the previous year is reduced to $0 dollars and you start over.