Does Solar Panel Add To An Appraisal

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.

Does solar panel add to an appraisal.

On average solar panels raise a home s value by 4 1 across the u s according to a new zillow analysis of homes across the country that s a boost of 9 274 on a 226 300 home according to the study. However if you do not own your panels whatever value that they may add cannot be included for an fha assessment. Whether the solar panels are leased and owned also may affect the appraisal. 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.

When appraising a home with owned solar panels or other energy efficient features there are several additional factors which determine how much value is added. Many appraisers are taking the position that there is no added value and perhaps some diminished value with leased solar panels because the buyer must assume the lease. Find everything you need to know about solar panels and solar installation costs. Otherwise it s as much of a leased responsibility as it is a benefit given the uncertainties over the long term.

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. If you own a home with a solar system the fha requires to your benefit that its value be assessed and added to the total appraisal value of your home when you want to sell it. 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. As a real estate appraiser i get asked all the time do solar panels photovoltaic add value to your home the answer is a definitive yes.

Unlike other features energy saving and green elements particularly solar panels will contribute a different amount to a home s value. Determining the value of solar panels is an issue that has many appraisers asking questions. While owning a solar system may add value to your home it would not be wise to expect a dollar for dollar increase based on the cost of the system project. Of course the appraiser must consider several factors and follow two generally recognized guidelines on how to attribute the value correctly within appraisal report.

Installing solar panels in a home not only helps to reduce current monthly utility bills. After all they save homeowners a ton of money right. Solar panels are one of those tricky things we all like to believe increase the value of a home. The only solar system which deserves a boost in the appraisal analysis is an owned system.