How To Adjust For Solar Panels Appraisal

The ho seemed dismayed as there was no adjustment credit for the solar panels they had put on their house.

How to adjust for solar panels appraisal.

Financed panels as fixture to real estate may consider the solar panels in the value of the property based on standard. Now while this report well documents the procedures used to arrive at the conclusions appraisers need to be very cautious about applying the numbers in the. 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. Solar pv systems can also be designed to back feed the utility electric power grid if more power is produced by the installed system than the home consumes in normal usage.

Solar panels and green homes are becoming increasingly more common in the marketplace. Whether the solar panels are leased and owned also may affect the appraisal. After reviewing the appraisal i did comment that the solar panels had been mentioned but as the ho stated no adjustment was applied. Engaging a skilled appraiser that understands solar photovoltaics and how to value them is a smart move before the purchase.

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. Solar pv systems provide financial benefits and are financially feasible in some areas. Determining the value of solar panels is an issue that has many appraisers asking questions.