Solar Panel Appraisal

The appraiser emphasized that solar panels are a new arena for appraisers.

Solar panel appraisal.

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. 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. A typical residential installation consists of a 5kw array which could increase a home s value by 30 000. 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.

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. Solar pv systems provide financial benefits and are financially feasible in some areas. If the solar panel system is owned and at least one comparable sale used in the appraisal report also has and owned solar panel system then the solar panels can be adjusted within the sales comparison grid showing value. 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.

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. Lenders are responsible for ensuring the appraiser has accurate information about the ownership structure of the solar panels and that the appraisal appropriately addresses any impact to the property s value. Plenty of solar companies like to quote the savings you ll generate on the hottest and longest days of the year. The issue simply hasn t been around long enough for there to be a consensus on how to value the addition of the panels.

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. Appraisers valuing the contribution of solar panels on homes has become one of the trickiest aspects of our work over the past decade. If it s leased it has no impact on value. Whether the solar panels are leased and owned also may affect the appraisal.

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.