Solar Panel Adjustment Lack of Data

[J Grant]

I would like to see feedback agree or disagree with my post # 28

 

[shrubberyvaluation]

keep in mind another aspect when trying to get a contributory value of a component such as solar panels...the competition is NOT just other houses s that have solar panels...the competition also includes THE ABITLITY OF AN OWNER TO EASILY ADD SOLAR PANELS AT A FUTURE TIME )

Some components are very disruptive to add, months of construction, need to get building permits, zoning approval - for example adding a pool or workshop bldg ) But other components such as a adding a whole house generator, or solar panels....call the company, they take care of permits, they make it easy, they come out and typically install it in a day or two. These companies often offer financing, tax credits, rebates, and have the latest tech.

So a buyer may think, why should I pay 10k for these old solar panels, I would rather pay less for a house and in a year or two get brand new panels from that company with those nifty ads on TV

I agree, it depends on what a knowledgable typical buyer would consider in their decision.

 

[J Grant]

I agree, it depends on what a knowledgable typical buyer would consider in their decision.

Exactly. MV assumes a well informed buyer, and most buyers are reasonably enough informed about solar panels or similar that they can add them new any time they want.

 

[George Hatch]

Thank you so much for the lesson on discounting.

I edited to add a couple more thoughts on the matter. You should go back and read them. And since you're getting a little snarky about it, the terms "reasonable holding period" and "cap rate" do not belong in the same sentence.

 

[alebrewer]

I edited to add a couple more thoughts on the matter. You should go back and read them. And since you're getting a little snarky about it, the terms "reasonable holding period" and "cap rate" do not belong in the same sentence.

You're just a treasure trove of information!

 

[alebrewer]

I edited to add a couple more thoughts on the matter. You should go back and read them. And since you're getting a little snarky about it, the terms "reasonable holding period" and "cap rate" do not belong in the same sentence.

BTW - there really is little difference between a cap rate and a discount rate. Kind of like the difference between exposure time and marketing time. But I know you just can't help yourself - you're one of the ones that make this forum so entertaining.

 

[Rlong]

Colorado tends to be more receptive to solar, as we "claim" fairly accurately 300 sunny days a year. That is only one factor in the puzzle (ample sun) but it helps. I have taken several classes and can do the "return" calculations, and am not "anti-solar" as some on this list; BUT I almost NEVER get feedback from clients that they save "X", and that was a motivator.. It's astounding. literally most cannot even give me the capacity. It seems like they are often "sold" on it with a fancy presentation, then forget. The most knowledgable PV owner Ive talk to (I was not appraising his house) was a fellow appraiser in a class.... he had all the numbers!! : ) and was driving a Tesla to all his appraisals (urban market). We'll just say appraisers tend to be "atypical"!

So I have simply been collecting "paired sales", shooting for "multiplple paired sales" and keep them in a foder. This provides a range that does in fact start at 0% market reaction but extends to 10% (in lower value homes). This is a range I obseve for other factors such as a benificial location. I then try to do a simple return calculation, etc and almost always go out of my way to find ONE comp so I can do some sensitivity analysis.

i have not observed what some say here that they are not on entry level/working class housing (somewhat to my surprise); and even funnier to me in the bedroom communities with ample Oil and Gas Job workers... I still see them on more roofs than I ever would expect... leading me to beleive "everyone wants to save money if thhey can.

Building a new house I was pricing it out, it appears to me that if you hire a "solar company" they are the ones actually getting "your" rebate, as well as ample profits... it looks to me like the components (good quality panel with micro inverters and a mounting system etc) is only about 1/3 of what these people are paying. I personally can't plan on a "10+ year return for a product/system that I think will be eclipsed by superior more inovative tech in 10 years.... Thats just PAR. At leaset for a portion of buyers in Colorado, it's about being green, and there is nothing wrong with that (appraisers tend to be most concerned with "saving green" nothing wrong with that either).

So no answers here, but if you live in an area where your starting or have been seeing them on the roofs, start asking everyone capacity, and how much their saving (cause if your like me you'll figure out that is not their motivation).... and start collecting "paireed/multiple paired sales" cause I think the return calculation is a hard sell (unless it's an appraiser!)

 

[alebrewer]

i have not observed what some say here that they are not on entry level/working class housing (somewhat to my surprise); and even funnier to me in the bedroom communities with ample Oil and Gas Job workers... I still see them on more roofs than I ever would expect... leading me to beleive "everyone wants to save money if thhey can.

Good point - in fact, based on what I've seen in my market, they tend to be more predominant on homes on the lower end of the value spectrum. Don't know if this is because the solar companies prey on these folks or what... but I agree with you.

 

[glenn walker]

I have a fiend who is in Solar Sales-- He says you sell the Tax Credit first and them you move them into the we are going to save the earth from climate change. Once you have them emotionally invested the greed of the tax credit and the moral high ground now they are going- green always makes the sale. He say without the Fed tax credit he can't give them away. I said whats next after your Solar career dies ? He looks at me and says well Electric Vehicles or maybe Sub-Prime loans will come back

 

[George Hatch]

BTW - there really is little difference between a cap rate and a discount rate. Kind of like the difference between exposure time and marketing time. But I know you just can't help yourself - you're one of the ones that make this forum so entertaining.

You're digging your hole deeper. Stop digging.