One of the biggest questions anyone has when deciding to go solar is: “How will it impact the value of my home?” It’s an important question of course and there have been some anecdotal reports. Now the Solar Energy Industries Association (SEIA) has produced a new report, How Owning a Solar System Impacts My Home Value: A Guide to Valuing Residential Solar Energy Systems, to help homeowners, realtors mortgage brokers and others understand what the fiscal impacts of going solar are.
“It’s critical both buyers and sellers go into a home sale well-educated, armed with the facts and figures needed to feel confident in their solar investment,” said Abigail Ross Hopper, SEIA’s president and CEO. “However, this guide shouldn’t just be a homeowner resource. With over 1.4 million residential solar systems in the U.S., this is a must-read for every stakeholder in the residential housing market, from mortgage brokers to realtors, across the country.”
The organization produced the report as part of its Solar Customer Resource Portal, which includes a number of resources to help homeowners go solar. Among the resources are standardized documents and forms that homeowners and solar installers can use to reduce the complexity of going solar for them.
The latest report focusses on ways to value solar’s impact on home value. It comes as SEIA recognized that a new customer goes solar roughly every minute and a half in the US and that roughly 1.5 million homeowners have already gone solar in the country.
There are a lot of complexities about rooftop solar systems. For instance, how do you value them as part of the overall cost of a home. The report addresses the issues, explaining the methodologies that appraises and others can use to evaluate the value of a rooftop solar system.
The report also provides tips for homeowners and real estate professional and offers a recommended valuation method. Ultimately it recommends what it calls the “Income Approach.” It explained that the approach values the solar array based on the income it’s projected to generate for the homeowner over its expected life. “For homeowners, this equals the expected energy-cost savings less any ongoing costs to pay for the system,” the report said.
The report builds on previous work from Sandia National Laboratories and others to evaluate the value solar power adds to homes. It also looked at appraisals of homes in Arizona, California, and Massachusetts. It found that the final appraised values of homes with solar power most closely matched the average income value of homes.Tweet