Does Solar Panel Add To An Appraisal

Determining the value of solar panels is an issue that has many appraisers asking questions.

Does solar panel add to an appraisal. Many appraisers are taking the position that there is no. Whether the solar panels are leased and owned also may affect the 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. It can potentially increase the home s value by up to 4 1 more than comparable homes with no solar panels.

Special energy systems not part of the real estate must not be included in the appraised value. But it does cover a big chunk of the cost of buying and installing home solar panels. 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. Installing solar panels in a home not only helps to reduce current monthly utility bills.

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. 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. 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 while many websites selling solar will lead you to believe it s the best possible investment for your home the true benefits of solar especially for a potential buyer interested. If they are leased the banks do not recognize a value.

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. 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. According to green energy marketplace energysage the average home solar system costs 18 300 before tax credits and 12 810 after tax credits in 2019. In terms of resale john distefano president of first fidelity appraisal services of new england said solar panels are growing in popularity.