Solar Panels

[Meandering]

I didn't see this article linked in here. Adding it for easy reference for all.

http://adomatisappraisalservice.com/solarhomepariedsales.pdf

Can you find one major flaw with this report??

Try this thought,

Why are appraisers computing/estimating income values for the PV with a free web tool, when those income values should be part of the seller's disclosures?

Or are we making the claim that buyers pay more for income, that they have no clue about, unless they also make use of the free web tool, and seller's aren't telling buyers what that income is -well maybe the seller's recognized income is slightly different than the estimation produced by the free web tool.

But in either case, if seller's aren't disclosing the income, there is no market evidence that buyers are making these substantial decisions based on the possibility they may have relied on a free web tool.

.

 

[Slappy]

An alternate way of estimating the market impact of an owned solar system is to value it as a typical buyer might. A buyer would value a system based on the money it would save over a period of time less maintenance costs. Say a system saves $2500 per year on electric bills. You could do a DCF to value the system based on anticipated savings choosing the appropriate discount rate (i) as well as time period . Sandia Labs has a free DCF solar valuation program which I have used which is is pretty nifty. Seems to me that a DCF may replicate the valuation process that a prudent buyer might make. I have been seeing a lot of solar systems lately. People who install them do not seem to recover their costs at resale (like pools). Also, as Amy said, confirm that the system is not leased.

 

[Slappy]

An alternate way of estimating the market impact of an owned solar system is to value it as a typical buyer might. A buyer would value a system based on the money it would save over a period of time less maintenance costs. Say a system saves $2500 per year on electric bills. You could do a DCF to value the system based on anticipated savings choosing the appropriate discount rate (i) as well as time period . Sandia Labs has a free DCF solar valuation program which I have used which is is pretty nifty. Seems to me that a DCF may replicate the valuation process that a prudent buyer might make. I have been seeing a lot of solar systems lately. People who install them do not seem to recover their costs at resale (like pools).