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. Of course the appraiser must consider several factors and follow two generally recognized guidelines on how to attribute the value correctly within appraisal report.
One way to show value for solar panels, is to write them as a line item in the sales comparison grid within the appraisal report if the following two criteria are met. If the solar panel system is “owned” and at least one comparable sale used in the appraisal report also has and “owned” solar panel system then the solar panels can be adjusted within the sales comparison grid showing value.
Another way to show value for solar panels is for the appraiser to note them in the appraisal report as a “feature and amenity”. Comments by the appraiser that a “leased solar system” is installed on the premises, indicates to the reader of the report that the appraiser considers the solar panels as adding value to the subject property.
No matter the way value is stated in an appraisal report, there is inherent value to every home that has a solar panel system installed. Whether a solar panel system is leased or owned, the current home owner or future homeowners, of the solar panel system, can look forward to years of prepaid electricity at a locked in discounted per kilowatt rate.