Solar Power value increase

[danjposk]

Hello. We had a solar power system installed and I am wondering how much added value a solar system adds to the home value? It is a 12.4 kW system with 2 Tesla Powerwalls @ 13.5 kwh

I have researched added value for a solar system but it is not clear how the added value increases the home value. Thank you so much!

 

[Vermonter]

Hello. We had a solar power system installed and I am wondering how much added value a solar system adds to the home value? It is a 12.4 kW system with 2 Tesla Powerwalls @ 13.5 kwh

I have researched added value for a solar system but it is not clear how the added value increases the home value. Thank you so much!

Doubt anyone here can give you that answer as it is very market specific. You're best bet would be to ask some local professionals

 

[Terrel L. Shields]

If you finance it through the solar panel company, then Fannie Mae does not allow the appraiser to include it in the value.

Only if you own the entire system free and clear will they include the value. Otherwise, so which "Springfield" do you live in. In general, sites east of the Mississippi do not generate as much energy as in the sunny Southwest. In general in my part of the Ozarks a solar panel array might return 50% of its cost if less than 5 years old. By the 20th year, it might not return a positive number.

In general there is a solar savings calculation you could make, where you capitalize the savings into a value and that method is taught in some appraisal classes. I attached a zipped file xlsx when open. A payback calculator -

 

[George Hatch]

Hello. We had a solar power system installed and I am wondering how much added value a solar system adds to the home value? It is a 12.4 kW system with 2 Tesla Powerwalls @ 13.5 kwh

I have researched added value for a solar system but it is not clear how the added value increases the home value. Thank you so much!

Sometimes it does, sometimes it doesn't. Literally. That applies whether the solar setup is leased or has been purchased outright by the property owner.

The calculators demonstrate the income factors that are involved but the use of that perspective is contingent on the assumption that the buyers and sellers will always act rationally about this attribute, which in real life is sometimes not the case. Some buyers will engage with these setups for emotional and political reasons, even if there is no monetary payoff. As well, "not economically viable" actually is a thing in some locations and for some pricing ranges.

The calculators I've seen don't always include all the economic elements in play in these comparisons, either; and they usually use some pretty arbitrary assumptions that won't always pan out. Personally I wouldn't use one of those calculators without modifying some of those elements.

It is my assumption that over time these reactions among the market participants will become more consistent, and that the actual economic feasibility will result in properties getting penalized in the market for not having these features. But for the most part, that time is not yet. So far I've only seen a handful of examples of where the resale value of the properties with these systems have returned 100% of the costs of that system. But that's in my region (southern Calif). It will be different in other areas of the nation.

 

[Elliott]

Otherwise, so which "Springfield" do you live in. In general, sites east of the Mississippi do not generate as much energy as in the sunny Southwest. In general in my part of the Ozarks a solar panel array might return 50% of its cost if less than 5 years old. By the 20th year, it might not return a positive number.

Everyone knows "Springfield" is in Oregon. (I know the comic book dealer from the Simpsons is based on the Armchair Comic book owner off SE Powell, where I acquired my Spiderman comic book collection).

 

[Tim Hicks (Texas)]

If you leased or financed it separately from your mortgage is has no contributory value until paid off per Fannie Mae guidelines. How much was the cost? How much was the electric bill before the system? After the system? Will there ever be months when it does not cover the entire amount of electricity needed? That is the biggest complaint here is sunny, Texas. They have a solar payment and they are still getting a electric bill too.

 

[Amy Perkins]

Hello. We had a solar power system installed and I am wondering how much added value a solar system adds to the home value? It is a 12.4 kW system with 2 Tesla Powerwalls @ 13.5 kwh

I have researched added value for a solar system but it is not clear how the added value increases the home value. Thank you so much!

You need to find another house that sold with this to extract out the adjustment. In the past, people lost money on their investment, much like a swimming pool. However, I would imagine it gaining value due to electric insecurity and increasing bills. So it depends how much you lost, but you won't make money unless people are in a panic.

 

[Elliott]

 

[shrubberyvaluation]

Hello. We had a solar power system installed and I am wondering how much added value a solar system adds to the home value? It is a 12.4 kW system with 2 Tesla Powerwalls @ 13.5 kwh

I have researched added value for a solar system but it is not clear how the added value increases the home value. Thank you so much!

It varies by location and price point of the house. (If you buy a house for $100,000 and put on a $30,000 solar panel system it could be less returns than on a house around $700,000.

 

[Cob]

Hello. We had a solar power system installed and I am wondering how much added value a solar system adds to the home value? It is a 12.4 kW system with 2 Tesla Powerwalls @ 13.5 kwh

I have researched added value for a solar system but it is not clear how the added value increases the home value. Thank you so much!

Ahhhh yet ANOTHER post where the person posts once and is gone.