How To Adjust For Solar Panels Appraisal

Another way to show value for solar panels is for the appraiser to note them in the appraisal report as a feature and amenity.

How to adjust for solar panels appraisal. 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. It s important for appraisers and real estate agents to know about solar and green energy so they can properly appraise and market homes. When appraising a home with owned solar panels or other energy efficient features there are several additional.

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. The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use. According to a study conducted by the u s. 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.

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. Solar panels and green homes are becoming increasingly more common in the marketplace. Determining the value of solar panels is an issue that has many appraisers asking questions. Understanding the value of renewable energy and your home appraisal.

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. 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. 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.

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.