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I've recently asked local RE agents about this because I was thinking of going Solar (in AZ) and was told "at this time appraisers do not give much, if any consideration for solar".
The better educated appraisers do. Green energy is becoming bigger every day and pretty soon any state who wants federal support is going to make sure at least 10% of its new construction is Green.
For a property with an OWNED solar system, an appraiser will give it value. The more components of the system (power production panels, handling capacity, battery storage, etc) the high the value they will give. Unfortunately, since most are leased, (yeah even though may homeowners for some stupid reason never grasp that part), the value is not to the property. Of those that are owned, most were sold and installed through "solar companies" which means the cost was moist likely grossly inflated. Since most consumer only know cost by these companies, they never knew how much they were ripped off and that they spent 10 times what it would have cost if they purchased the system themselves and had it installed by a qualified electrician who is not in the business of selling you equipment.
Appraisers also have been shaky about value since they are not home, electrical or a solar inspector. Since solar system components can range from a cheap piece of garbage all the way to a high quality unit, appraisers don't know if you have something that will last 1 more year or 25 more years. They don't know product so they don't know if the inverter will be around until the kids retire or is it one step from recall due to burning houses down? As a result, they often just list one as presnt or not with little real value, just like a water heater.
The better educated appraisers do. Green energy is becoming bigger every day and pretty soon any state who wants federal support is going to make sure at least 10% of its new construction is Green.
That may be true for owned solar panels, but leased panels are different. The lease attaches a financial obligation to the property (which would be considered a liability of the property). The lease is usually recorded and makes any subsequent owner liable for lease payments for the duration of the lease. The lease may also allow the lessor to make changes on the property, including removal of the panels during or after the lease period without regard to damage on the property.
I think it unreasonable to expect a real estate appraiser to make a financial assessment of the liability related to the lease vs. any savings on energy usage. At best, I would expect an appraiser to treat it as a wash.
The better educated appraisers do. Green energy is becoming bigger every day and pretty soon any state who wants federal support is going to make sure at least 10% of its new construction is Green.
You're asking the wrong question. It's not appraisers who "include solar panels in the price". It's the market - ie. buyers, who would be typically paying more for solar panels or not. It's the appraiser's job to reflect the market's reaction to solar panels. Might be a difficult job but in many areas there are enough comps where isolating the additional value, if any, for this feature shouldn't be too difficult.
The system it's all high quality components, made in USA, installed by a local electrician/solar company. We did our research and did not pay 10 times what the system would have costed had we bought it ourselves.
Generally, you need the appraisal in order for your buyer to get their mortgage, so the appraisal is important. OP needs a high appraisal to get rid of PMI.
I don't know what an appraiser would do, but as a buyer, I would not pay extra for a solar system. I would not purchase a house with a leased system. If there are a lot of buyers like me, then the solar isn't going to help with the appraisal.
It would be easy enough to call your mortgage company and see if they allow value for a solar system.
Generally, you need the appraisal in order for your buyer to get their mortgage, so the appraisal is important. OP needs a high appraisal to get rid of PMI.
I don't know what an appraiser would do, but as a buyer, I would not pay extra for a solar system. I would not purchase a house with a leased system. If there are a lot of buyers like me, then the solar isn't going to help with the appraisal.
It would be easy enough to call your mortgage company and see if they allow value for a solar system.
Or if you'd qualify to take over the lease once you had the mortgage. THAT is the biggie...
We want get rid of PMI. We have made some improvements to the house, but the major was we installed solar panels. They are ours, not leased.
We bought 3 years ago, prices in the area have gone up, but to remove PMI we need our equity to be 25% and that concerns us so we want to be sure before investing $450 in an appraisal.
What is your equity (%) WITHOUT the panels ?
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