Solar panels - PV Value estimated energy value

[J Grant]

I am not pretending to be an energy expert but there are other ways to cut down on electric bills then solar panels. What does most of the electric bill support? Either cooling or heating the house or its elements of the house. When I got my storm impact thick glass tinted windows, my energy bill was reduced by about 30%. Plus the windows provide security and storm protection. They are a much better investment and really add to home value here in FL. I imagine in a cold state where the $ is for heat bills, insulation, sealed double pane windows etc , for any climate perhaps a heat pump or efficient system, mini splits now are teh big thing more efficient then whole house AC running when the occupants might use just one or two rooms at a time.

 

[Terrel L. Shields]

discounted cash flow

Any number of sinking fund methods can work in addition to a simple GRM applied to the savings. No one has to use DCF to arrive at a defensible number. I apply a Hoskold's Premise to a number of mineral income problems.

If the surrounding subdivisions show a 5-7% increase in value that is what the market bears.

Best way for sure but if I don't have a solar sale in a given town of cookie cutters where I can compare prices, then I don't have a good basis for making an adjustment. I've had a sale with an array on the ground with a very old manf. home. But when sold, the array disappeared, the MH disappeared, and a new home was constructed on this large lot. No solar panels, but a nice shop building instead. The solar panels? No one seemed to know but they were obviously not paid for nor wanted by the buyer.

Cost does not equal value
Savings does not equal value

But they do impact value. No one pays for something that is free. And most people pay proportionally higher amounts according to the cost or the savings. It's like saying people don't pay for surplus land. They most certainly do.

 

[Terrel L. Shields]

They are a much better investment

The late architect, Doug Rye, (the One-Armed Architect) designed energy efficient homes, encapsulated the crawl space, did not put duct work in the ceiling, super insulated with solid cellulose (the brown egg carton kind) and insisted on caulking every base plate and window sill, triple glaze windows, etc. All electric, no gas and used to guarantee the electric bill would be less than X dollars. I saw many of Doug's energy talks and he had a radio program for years on AM radio stations. His son still builds these energy efficient houses in central AR. And they did not use solar panels but were an advocate for geothermal heat pumps.

This is a bit of history about how Doug realized efficiency was the key to low cost homes.

"King Of Caulk And Talk" Promotes Energy Efficiency To Save Money And Environment

WTHR.com is the news leader for Indianapolis and Central Indiana. Get the best news, weather, sports and traffic information from Channel 13.

www.wthr.com

 

[J Grant]

Any number of sinking fund methods can work in addition to a simple GRM applied to the savings. No one has to use DCF to arrive at a defensible number. I apply a Hoskold's Premise to a number of mineral income problems.


Best way for sure but if I don't have a solar sale in a given town of cookie cutters where I can compare prices, then I don't have a good basis for making an adjustment. I've had a sale with an array on the ground with a very old manf. home. But when sold, the array disappeared, the MH disappeared, and a new home was constructed on this large lot. No solar panels, but a nice shop building instead. The solar panels? No one seemed to know but they were obviously not paid for nor wanted by the buyer.

But they do impact value. No one pays for something that is free. And most people pay proportionally higher amounts according to the cost or the savings. It's like saying people don't pay for surplus land. They most certainly do.

Not always.
That is why the terms over improvements exist and super adequacy exists. They are not just textbook terms; they are real. They describe when the market cost returns no value, or only a small percentage of the cost, so that making the replacement is not worth it .

The market drives the appraisal development, regardless of how reasonable a formula sounds or how impressive a chart or graph looks. The seduction of such tools can produce misleading results if the market price reaction in paired sales/home prices do not align with the formula.

In demand features are added to homes at some point, and found in MLS and comments , also observed when driving around - solar panels are visible - do a lot of homes in an area have them none, or a few?

 

[J Grant]

The late architect, Doug Rye, (the One-Armed Architect) designed energy efficient homes, encapsulated the crawl space, did not put duct work in the ceiling, super insulated with solid cellulose (the brown egg carton kind) and insisted on caulking every base plate and window sill, triple glaze windows, etc. All electric, no gas and used to guarantee the electric bill would be less than X dollars. I saw many of Doug's energy talks and he had a radio program for years on AM radio stations. His son still builds these energy efficient houses in central AR. And they did not use solar panels but were an advocate for geothermal heat pumps.

This is a bit of history about how Doug realized efficiency was the key to low cost homes.

"King Of Caulk And Talk" Promotes Energy Efficiency To Save Money And Environment

WTHR.com is the news leader for Indianapolis and Central Indiana. Get the best news, weather, sports and traffic information from Channel 13.

www.wthr.com

A simple thing like regular height ceilings and smaller window seals heat/AC in or out, even though modern homes love to design with big windows and high ceilings.

 

[Terrel L. Shields]

like regular height ceilings

Doug like 9' ceilings with a drop ceiling. That meant the ductwork was there under the insulation in the attic and thus not losing cool in a hot attic. Many houses are cooling and heating the attic without realizing a vent has a hole in it or came apart or the duct has become disconnected. He also has seals around the windows and the outer wall electrical fixtures. You can actually buy those at Lowes or Home Depot and takes only seconds to install.

 

[J Grant]

An igloo I read is amongh the most energy efficient structures and in a storm repels wind since the wind swirls around it instead of hitting a side .There is no roof to blow off. The domed top is part of the whole -

 

[Mark K]

I've seen people brag about 6" ext walls and at the same time they have huge windows that just suck heat and cool out of a house.

Smaller windows, larger overhangs, well insulated and air tight, hi eff HVAC, etc does wonders. Those things are easy on new const. Its hard to upgrade an old house but I've done the best I can on a 60 yr. old home. My original, large Andersen thermo windows cost me some money every year but I'm not paying $30K (latest bid) to upgrade to new ones. I've done the math, new windows would save me ballpark $750/year. They're not fogged, they're staying.

 

[Elliott]

AI: For a 2000 sf house.

Installing solar panels with battery storage for a 2000 sq ft home in Southern California involves significant upfront costs but offers strong long-term savings. Below is a detailed breakdown of costs, payback periods, insurance implications, and other ROI factors, based on current California pricing and policies.

• Energy savings: Solar reduces utility bills by 70–100%, with batteries maximizing savings during peak-rate hours under California’s NEM 3.0 policy.
• Incentives: Federal tax credits and state rebates shorten payback by 30–40%.
• Battery necessity: Storage is critical for ROI under net billing, as it allows stored energy use during high-rate periods.
Insurance Cost Implications
Adding solar and storage typically increases homeowner insurance premiums by $100–$800 annually, depending on:
• System value: Insurers adjust premiums to cover replacement costs (e.g., $30k–$40k for panels and battery).
• Location: Fire-prone areas (e.g., Bay Area) may see higher increases, though batteries don’t inherently raise fire risk.
• Insurer policies: Some providers (e.g., AAA) charge per panel, while others bundle replacement costs into home value.
Other ROI Factors
• Long-term savings: Homeowners save $54,829+ over 25 years, with panels offsetting 107% of electricity needs.
• Property value: Solar installations increase home resale value by ~4.1% (national average).
• Maintenance: Minimal upkeep (e.g., occasional cleaning) with 25-year panel warranties.
Summary
For a 2000 sq ft Southern California home, solar panels with storage deliver a 5–11 year payback on a $21,000–$29,400 net investment, despite a $100–$800 annual insurance increase. High electricity rates, tax incentives, and battery optimization under NEM 3.0 make this a robust investment, with long-term savings exceeding $50,000 in most cases.

......................
But if the house is destroyed by fire.....some of that savings will go away.

AI:
"Summary
Restoring a 2,000 sq ft home with solar panels, battery storage, and an EV after a fire costs $19,000–$39,000—roughly 2–3 times more than a conventional home ($8,000–$14,000). The premium stems from hazardous material protocols, electrical system complexities, and EV-related risks. Insurance may offset some costs, but policy exclusions for batteries/EV components could leave homeowners with $5,000–$15,000 in uncovered expenses ."

 

[Tim Hicks (Texas)]

I wonder if AI is getting those "cost figures" from articles or actual invoices? Maybe including the tax credit, which is not the same as a dollar for dollar discount?

It would be far cheaper to foam incapsulate the home and save 20-40% on the electric bill than to have a solar panel payment and still have a 70% lower energy bill.