How To Adjust For Solar Panels Appraisal

According to a study conducted by the u s.

How to adjust for solar panels appraisal.

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. While owning a solar system may add value to your home it would not be wise to expect a dollar for dollar increase based on the cost of the system project. If the seller wants to be reimbursed for some of the cost of the panels in the value of the property some appraisers have opined that they would likely consider the following factors. Department of energy homeowners investment in solar might be worth it.

Now while this report well documents the procedures used to arrive at the conclusions appraisers need to be very cautious about applying the numbers in the report to your local current assignment. 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 cost of removing the panels and repairing the. Although adomatis said the real estate sector has recently been looped in to green and solar networking events there s still much work to be done to get everyone on the same page and ensure homeowners are getting the most value for their systems. Another way to show value for solar panels is for the appraiser to note them in the appraisal report as a feature and amenity.

Solar pv systems can also be designed to back feed the utility electric power grid if more power is produced by the installed system than the home consumes in normal usage. Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase. 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. In areas where solar panels are prevalent however appraisers have a head start.

Understanding the value of renewable energy and your home appraisal. When appraising a home with owned solar panels or other energy efficient features there are several additional. The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use. It s important for appraisers and real estate agents to know about solar and green energy so they can properly appraise and market homes.

The survey included 4 000 homes with solar power systems and discovered that buyers were willing to pay around 15 000 more for a house that included an average size solar power system.