The appraiser emphasized that solar panels are a new arena for appraisers.
Solar panel appraisal.
If you are appraising a property with solar panels the first thing you ll need to figure out is whether the solar array is owned or leased.
The issue simply hasn t been around long enough for there to be a consensus on how to value the addition of the panels.
Says top 1 real estate agent thomas braunagel of bridgeport ct anybody can quote this super efficient july 15th but what really counts is when you average it out over the course of the year and this means factoring in the rainy months and.
Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase.
Solar pv systems provide financial benefits and are financially feasible in some areas.
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.
Many appraisers are taking the position that there is no added value and perhaps some diminished value with leased solar panels because the buyer must assume the lease.
If insufficient documentation is available and the ownership status of the panels is unclear no value for the panels may be attributed to the property value on the appraisal unless the lender obtains a ucc personal property search that confirms the solar panels are not claimed.
Plenty of solar companies like to quote the savings you ll generate on the hottest and longest days of the year.
Find everything you need to know about solar panels and solar installation costs.
Attached is a very well written 45 page report that will help all appraisers better understand this issue and perhaps lead you in the right direction when you encounter homes with solar panels.
One way to show value for solar panels is to write them as a line item in the sales comparison grid within the appraisal report if the following two criteria are met.
If it s leased it has no impact on value.
Appraisers valuing the contribution of solar panels on homes has become one of the trickiest aspects of our work over the past decade.
Solar panels increase home values a study from lawrence berkeley national laboratory found that each kilowatt of solar capacity could add about 6 000 in value to a home at least in california fast company reported jan.
Whether the solar panels are leased and owned also may affect the appraisal.
The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use.
