Spotlight on the Valuation of Residential Solar

Solar photovoltaic (PV) systems are becoming more and more common, even here in the (sometimes overcast and dreary) Buckeye State. Rubber City Appraisal offers specialty appraisal services providing opinions of value for residential properties with solar assets. Such valuation requires that the contributory value of energy improvements, and any premium paid for a high-performing energy-efficient home, must be measured based on the market reaction.

We understand the fundamentals of these PV systems, their component parts, and how they operate. We are knowledgeable about energy reports, energy ratings, and building commissioning. And we are familiar with Fannie Mae and Freddie Mac requirements for valuing solar panels.

Measurement of the PV system’s contributory value is accomplished via consideration of the sales, cost, and income approaches. We predominantly utilize the PV Value tool, in combination with market research analyzing market reaction, in the derivation of a separate value determination of the PV system.

Please note that for most mortgage lending appraisals, intended users require that the solar PV system must be owned in order to be included in the appraisal of the property. In addition, to perform these appraisals, the appraiser will require specific details from the homeowner  including but not limited to: total system watts, system age, module warranty, derate factor, and degradation. It is also crucial that homeowners share with the appraiser copies of their electric utility bills going back a minimum of one year. More information on this topic is can be found in this Fannie Mae information sheet.

We look forward to discussing the valuation of your residential solar with you!