Does Solar Panel Add To An Appraisal

Solar panels are one of those tricky things we all like to believe increase the value of a home.

Does solar panel add to an appraisal. Find everything you need to know about solar panels and solar installation costs. Determining the value of solar panels is an issue that has many appraisers asking questions. Unlike other features energy saving and green elements particularly solar panels will contribute a different amount to a home s value. Installing solar panels in a home not only helps to reduce current monthly utility bills.

Whether the solar panels are leased and owned also may affect the appraisal. After all they save homeowners a ton of money right. However if you do not own your panels whatever value that they may add cannot be included for an fha assessment. 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.

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. How many appraisers have boosted for solar on leased and non transferable systems. 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. 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.

The only solar system which deserves a boost in the appraisal analysis is an owned system. 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. 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.

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. 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. Otherwise it s as much of a leased responsibility as it is a benefit given the uncertainties over the long term. Solar panels and green homes are becoming increasingly more common in the marketplace.