Appraisal Value Of Solar Panels

If you ve seen a rise in solar panels in your area consider taking the first step toward competency in the valuation of this energy efficient feature of real estate.

Appraisal value of solar panels. Solar pv systems provide financial benefits and are financially feasible in some areas. 3 minutes installing solar panels can significantly increase your property s value according to a new study from the lawrence berkeley national lab lbl. Determining the value of solar panels is an issue that has many appraisers asking questions. The report titled selling into the sun.

On average solar panels raise a home s value by 4 1 across the u s according to a new zillow analysis of homes across the country that s a boost of 9 274 on a 226 300 home according to the study. Installing solar panels in a home not only helps to reduce current monthly utility bills. 1 utility cost savings 2 risk of repairs to the house caused from having solar panels 3 the limited number of people who can repair the panels and 4. The basis of the report is how to value the appraised property with solar panels when no comps have them using paired sale analysis.

Another way to show value for solar panels is for the appraiser to note them in the appraisal report as a feature and amenity. Price premium analysis of a multi state dataset of solar homes builds on previous research which concluded that homes with solar panels in california sold for more than those. The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use. Solar panels and green homes are becoming increasingly more common in the marketplace.

Learn more about how solar panels increase property values. It can potentially increase the home s value by up to 4 1 more than comparable homes with no solar panels. Comments by the appraiser that a leased solar system is installed on the premises indicates to the reader of the report that the appraiser considers the solar panels as adding value to the subject property. Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase.

Recognizing that solar power systems add value to a property the real estate industry is working to create more sophisticated methods for accurately determining the market value of solar as well as the financial value of properties equipped with solar power systems. By the way solar pv means solar photo voltaic.