Solar pv systems provide financial benefits and are financially feasible in some areas.
Appraisal adjustments for solar panels.
If you own the solar panels on the roof of your home you only need to meet the standard eligibility requirements in order for fannie mae to purchase or securitize a mortgage on your property the same requirements that would apply even if you had no.
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.
A valuable investment the upfront cost for solar panels can be steep and they may not be a viable solution for people in every part of the country.
You need to protect yourself from dishonest solar contractors who will overestimate the value of your solar panel system.
I had a solar panel company come to my house a few months ago it would cost 21k to buy with the tax credit it would be 14k out of pocket even if it drops my electricity bill 50 per month that is approx 600 per year it will take 15 years just to recoup the cost and if you remember that good old class about the future value of a dollar.
Factoring solar power generation into an appraisal can be difficult because the technology is changing rapidly and the appraiser must analyze how solar power affects a home s final 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.
A primer presented by instructor mark buhler.
An example that i see used a bunch is taking the amount of estimated savings in a year and times it by 20.
Financed panels as fixture to real estate may consider the solar panels in the value of the property based on standard.
With regard to solar the important point to take away from fannie mae s guide is this.
So if you save 2000 on your rooftop solar panels system your home will appreciate by 40 000.
The skilled appraiser can assist the homeowner in understanding the size of system they need to produce the energy they use.
Fannie mae released on dec.
Buhler has over 25 years of appraisal experience and specializes in the valuation of energy efficient homes which are increasingly.
For an overview of solar panels methods of valuation and challenges of appraising properties with solar check out our recorded webinar appraising solar panels.
It also clarified its policy on the valuation of homes with solar panels.
