Team of Appraisers Across Six States Find Home Buyers Will Pay Premium for Solar Homes

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Photovoltaics combined value to homes in 6 markets, according to a new news patrician “Appraising into a Sun: Six-State Solar Home Paired-Sales Analysis,” led by a researcher from a U.S. Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab) and a home estimation expert. Researchers intent a group of 7 appraisers from opposite a 6 states to establish a value that solar photovoltaic (PV) systems combined to single-family homes regulating a industry-standard paired-sales gratefulness technique, that compares new sales of allied homes to guess a reward buyers would compensate for PV.

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The appraised premiums also reliable statistical displaying formula from a vast Berkeley Lab study conducted in 2013, that found that buyers were peaceful to compensate $15,000 some-more for a home with a average-size solar photovoltaic complement (3.6 kilowatts), or about 4 additional dollars per watt of solar power, yet premiums for any particular home are marketplace contingent and are expected smaller given now descending commissioned solar prices.

“These formula will advantage appraisers, genuine estate agents, and debt lenders who increasingly confront PV homes and need to know a factors that minister to, and detract from, marketplace value,” says investigate co-author Ben Hoen, a researcher in a Energy Technologies Area of Berkeley Lab. The mountainous expansion in U.S. home PV systems—which totaled some-more than half a million homes in 2014—highlights a need for additional gratefulness options.

For any of a 43 pairs of allied PV and non-PV homes, appraisers found premiums were rarely contingent on a underlying complement and marketplace characteristics. These embody a distance of a system, a accessible incentives and commissioned prices during a time of sale, and a underlying sell electricity rates. The appraisers therefore suggest not regulating a one-size-fits all approach, though rather one that considers these factors. They found both a deputy cost, privately one that takes into comment sovereign state and application incentives, and a benefaction value of appetite assets are expected good predictors of premiums found in particular markets.

“Many appraisers and lenders cite a paired-sales gratefulness techniques that are customary in a genuine estate community, though allied pairs of PV and non-PV homes are not always available, that can outcome in PV systems on some homes receiving no appraised value,” says lead author Sandra Adomatis, an appraiser who helped rise a Appraisal Institute’s Green Addendum and who has created and oral extensively on valuing immature features. “One of a many critical contributions of a investigate is to uncover that paired-sales investigate accords with cost, income, and statistical-modeling approaches to estimating PV home premiums. Lending estimation discipline and expectations should concede these methods for estimating PV home premiums when allied sales are not available.”

The investigate also found that cost per watt was a suitable metric for valuing PV systems and that there was no unchanging disproportion in days on a marketplace between PV and non-PV homes.

The investigate concludes with a list of recommendations for improving PV home valuation.

The investigate was upheld by appropriation from a U.S. Department of Energy SunShot Initiative. The SunShot Initiative is a collaborative inhabitant bid that aggressively drives creation to make solar appetite entirely cost-competitive with normal appetite sources before a finish of a decade. Through SunShot, DOE supports efforts by private companies, universities, and inhabitant laboratories to expostulate down a cost of solar electricity to $0.06 per kilowatt-hour. Learn some-more during energy.gov/sunshot.

Source: LBL