How To Adjust For Solar Panels Appraisal

Financed panels as fixture to real estate may consider the solar panels in the value of the property based on standard.

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. The appraiser emphasized that solar panels are a new arena for appraisers the issue simply hasn t been around long enough for there to be a consensus on how to value the addition of the panels. After reviewing the appraisal i did comment that the solar panels had been mentioned but as the ho stated no adjustment was applied. Whether the solar panels are leased and owned also may affect the appraisal.

Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase. 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. 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. The ho seemed dismayed as there was no adjustment credit for the solar panels they had put on their house.

Solar panels and green homes are becoming increasingly more common in the marketplace. If the solar panels are then the appraiser owned cash purchase consumer debt not collateralized by solar panels or debt paid off may include the solar panel value based on standard appraisal requirements. The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use.