Does Solar Panel Add To An Appraisal

As a real estate appraiser i get asked all the time do solar panels photovoltaic add value to your home the answer is a definitive yes.

Does solar panel add to an appraisal. Solar panels are one of those tricky things we all like to believe increase the value of a home. However if you do not own your panels whatever value that they may add cannot be included for an fha assessment. Determining the value of solar panels is an issue that has many appraisers asking questions. 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 only solar system which deserves a boost in the appraisal analysis is an owned system. 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. Find everything you need to know about solar panels and solar installation costs. How many appraisers have boosted for solar on leased and non transferable systems.

Otherwise it s as much of a leased responsibility as it is a benefit given the uncertainties over the long term. It can potentially increase the home s value by up to 4 1 more than comparable homes with no solar panels. Of course the appraiser must consider several factors and follow two generally recognized guidelines on how to attribute the value correctly within appraisal report. Solar panels and green homes are becoming increasingly more common in the marketplace.

Installing solar panels in a home not only helps to reduce current monthly utility bills. If you own a home with a solar system the fha requires to your benefit that its value be assessed and added to the total appraisal value of your home when you want to sell it. 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. After all they save homeowners a ton of money right.

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. The new york times reported that fannie mae advised appraisers to evaluate a home s solar panel system to discern how much it should add to the house s value. 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. When appraising a home with owned solar panels or other energy efficient features there are several additional factors which determine how much value is added.