How To Adjust For Solar Panels Appraisal

A home owner ho came to me the other week with an appraisal.

How to adjust for solar panels appraisal.

Solar pv systems provide financial benefits and are financially feasible in some areas. Determining the value of solar panels is an issue that has many appraisers asking questions. The ho seemed dismayed as there was no adjustment credit for the solar panels they had put on their house. Financed panels as fixture to real estate may consider the solar panels in the value of the property based on standard.

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 skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use. 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. 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.

Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase. 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. 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.