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Solar for lenders is never included in appraisal or value. It can be moved. I have an all solar house. I own the equipment and this is VERY unusual. Most get in these wacky contracts with Solar City - Solar City agrees to "maintain" the panels in exchange for owners of house giving units to Solar City, there would be no value benefit in this case. Another solar scenerio is the HATED HERO program where the panels again have no value, perhaps a negative value. Solar technology has zoomed in the past two years. Panels older than 3 years are pretty ancient compared to today's which are 80% cheaper, lighter and provide more efficiency
San Jose, CA
Electricity is just part of gas & electric. Lets take the worst case, a pool, central a/c. Gas powered heat. $200 x 72 month(avg staying for a family at that house)=$14.5K max is what the occupants will spend. Keep in mind during spring or fall usage is a fraction. For the solar paneled owner occupied there is a max life they will last. If it is leased it is a liability few come out ahead. I would also want to know how much you get paid from utility company for giving back to the grid.
San Jose, CA
You would have to find comps to justify your assumption for your area...
Tony and Suzanne Marri...
Maria Zipf I don't think it has any impact on value. The purchaser will however benefit from a low utility bill.
I am with Fred Griffin on this.
Have never seen such a house, solar is rare here, so no idea how to monetize the value.
Maria Zipf I think, it depends. Good question!
I spoke with an appraiser a couple of weeks ago and he said there is no extra appraised value for this. The vlaue is in the eye of the user and the savings on utility bills or sell back of the extra current.
That would be a good question for an appraiser!
I don't think there is any impact on value, and they are not included in an appraisal. Some buyers may like that it has solar but aren't likely to be willing to pay other than market value of a comparable non-solar home
This is really going to depend on your market. Is solar common? Do you have to educate buyers? Some just don't get solar. Some think you can't benefit from solar on a cloudy day. You can if you have the batteries to store it. In most areas I don't think it adds to the value.
Too complex to boil it down.
I hope, the house has more than just solar panels, since they loose value quiet fast.
Maria Zipf Tell us more.
There will always be an electric bill for they charge for their service connection and you will need that on stormy, cloudy days. Usually, a solar system discounts the utility bill by a hefty percentage. My most recent sale with solar cut usage by 50%. Listing price is market influenced as in supply & demand...separate from optional solar dynamics
Not sure people would see value, maybe even a de-value. If it were that good more home-owners would have it and we don't.
If your ideal buyer is a shelter seeker, reduced living expenses the way to present the value.
But you must ask, "Who does such a house appeal to MOST?"
Now you can add value. Any agent who allows the appraiser to establish the value of the house should not be in real estate. Your job is to get the appraiser/lender out of the equation.
Value is in the eye of the buyer, some will look at this as a plus that goes far beyond the value of the energy bill.
Others will look at it as a liability, especially if a slimy lease is involved.
Awesome question! If the solar is owned instead of leased, that would have value. If it's leased through a lien on the home (like a PACE loan), then it is a huge detraction. It also depends on the price of electric.
If it's an owned system, then there is value to the system depending on it's life and how much of the new owner's utilities will be covered. There is also the "psychological" value to people like me, for being able to be off the grid and to be able to have power in the event of a blackout/grid failure/natural disaster.
What Caroline said! Doesn't impact the value to an appraiser - but, may be of more value to the buyer with the monthly savings!
It has value but the amount is difficult to determine.
As you already have been told, and in my opinion, the real value is up to the buyer to determine.
Interesting question. It may have some perceived value but not sure if it would relate to monetary value.
Blog about what you recommend.
It is nice to have that here in Arizona
Paul S. Henderson, REALTOR®, Broker, Tacoma Washington nailed this one!
No experience with this! No clue!
we've not dealt with that yet....
It is my understanding that properties with solar must hook up to the electrical grid, sell it to the grid and buy back the electricity needed.
Maria Zipf - I do not think this will make much of a difference in price, at least in our ares.