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Solar Quagmire

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gregb

Elite Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
While inspecting a $1.6 sale today saw a stack of new roofing tiles in the side yard. Asked the attending listing agent about the tiles, who said they were left over after the roof was replaced by the solar company that damaged the original roof during their solar panel install. Next question, was the solar system owned or leased? Agent reported the solar system is leased, its total cost was $35,000 with a balance on the lease of about $33,000. Agent then reported that the seller was either going to pay of the $33,000 solar lease at close of escrow, or credit the buyer that amount, depending on what the buyer chose.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
A pita way beyond 2.2% of the price. $35k vs $1.6M. :leeann:
 
D

Deleted member 134708

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While inspecting a $1.6 sale today saw a stack of new roofing tiles in the side yard. Asked the attending listing agent about the tiles, who said they were left over after the roof was replaced by the solar company that damaged the original roof during their solar panel install. Next question, was the solar system owned or leased? Agent reported the solar system is leased, its total cost was $35,000 with a balance on the lease of about $33,000. Agent then reported that the seller was either going to pay of the $33,000 solar lease at close of escrow, or credit the buyer that amount, depending on what the buyer chose.

Not Real Property. Has zero collateral value.
 

Doug in NC

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I did work recently on a property that owner paid almost 7% of his total property purchase/construction cost for a solar power system. I've come to the conclusion that these people don't purchase solar power systems for the economic benefits, but rather their own personal satisfaction that they are doing their part to save the planet. It's a very expensive endeavor for bragging rights if you ask me.

It is likely to take the homeowner 10 years just to recoup his investment and I believe the solar panels are only designed to last about 15 years, with declining output as the panels age. Isn't the typical home buyer only in a house about 7 years on average these days?

*Side note: I did another appraisal on an approximate 7,000 sf house with a solar power system. The property owner was sitting in the breakfast room with the lights off doing a conference call. No lights were on in the entire house, the guy was apparently trying to make his solar power system pay for itself. :rolf:
 
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