For an overview of solar panels methods of valuation and challenges of appraising properties with solar check out our recorded webinar appraising solar panels.
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 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.
Says real estate agent aaron zapata of inman according to fha and fannie mae whether solar panels add value or are viewed as a liability is still unclear.
A typical residential installation consists of a 5kw array which could increase a home s value by 30 000.
After all they save homeowners a ton of money right.
A primer presented by instructor mark buhler.
Whether the solar panels are leased and owned also may affect the appraisal.
The issue simply hasn t been around long enough for there to be a consensus on how to value the addition of the panels.
Solar panels are one of those tricky things we all like to believe increase the value of a home.
Solar pv systems provide financial benefits and are financially feasible in some areas.
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.
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.
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.
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.
The appraiser emphasized that solar panels are a new arena for appraisers.
Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase.
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.
Appraisers valuing the contribution of solar panels on homes has become one of the trickiest aspects of our work over the past decade.
Buhler has over 25 years of appraisal experience and specializes in the valuation of energy efficient homes which are increasingly becoming more common in the marketplace.
