Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase.
Solar panel appraisal.
If it s leased it has no impact on value.
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.
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.
A typical residential installation consists of a 5kw array which could increase a home s value by 30 000.
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.
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.
The appraiser emphasized that solar panels are a new arena for appraisers.
Solar pv systems provide financial benefits and are financially feasible in some areas.
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.
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.
Plenty of solar companies like to quote the savings you ll generate on the hottest and longest days of the year.
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.
Find everything you need to know about solar panels and solar installation costs.
The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use.
