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News on Solar's impact on value from the Appraisal Institute

By
Real Estate Agent with Home Buyer's Agent of Ann Arbor

As a local expert on solar homes I was pleased to see the Appraisal Institute announced their conclusion on the topic of solar's impact on property valuation: 

Solar Electric Systems Positively Impact Home Values

 

To determine the actual number for the value impact is not an easy task. And, it has very little connection with what the homeowner paid for the solar system, just like anything unique thing a home owner does to their home.

But at least appraisers now have a tool to use to get a handle on the impact of a solar system on a home's value.

The Appraisal Institute worked with scientists at Sandia Laboratories to pin down some data that an appraiser can collect from the homeowner or the installer of a system. Inserting these numbers in to an online spreadsheet can pop out a dollar amount that the system might contribute to the home's value.

The tool is usable for both photovoltaic (PV) solar, (Which generates electrical power) and solar thermal water heating, which is typically used for domestic hot water, but can be used for domestic space heating in extreme installations.

Solar Panels on an Ann Arbor roof during winter

Now what the market impact of a solar array is will take a while to determine, but the work of Sandia Laboratories and the Appraisal Institute is a great start!

 

Here is a link to the Institute's press release: http://www.appraisalinstitute.org/newsadvocacy/news/2013/Solar-Electric-Systems-Positively-Impact-Home-Values-10-31-13.aspx

Here is a direct link to Sandia's Information: http://energy.sandia.gov/?page_id=8047

And finally, here is a link to the form for collecting the basic solar system data:

http://www.appraisalinstitute.org/education/downloads/ai-reports/AI-82004-res-green-energy-eff-addendum.pdf (Note the link in the press release to this form doesn't work. This link does as of 20131210.)

Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Jon, this is good news indeed. Thanks for link.

Dec 13, 2013 02:52 AM
Jon Boyd
Home Buyer's Agent of Ann Arbor - Ann Arbor, MI
Ann Arbor Real Estate Buyers Agent

Happy to be able to provide it.

Solar use will continue to grow in the years ahead. Probably slower than in the last couple, but it will still grow.

Dec 13, 2013 03:08 AM
Barry Kessler
Pinnacle Estate Properties, Inc. - Simi Valley, CA
Barry Kessler

Hi Jon,

Was doing some research on solar and came across your article.

Thanks for the info.

 

 

Oct 27, 2014 03:51 PM