Posted by
John P. O'Brien

How much more will a home appraise for that has a solar panel array that provides 75% to 92% of electricity from solar?

The system costs $21,000 newly installed on a 2,400 sq. ft. 4/3, two-story home in East Montgomery County.

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How much more will a home appraise for that has a solar panel array that provides 75% to 92% of electricity from solar?

By John P. O'Brien   
Posted on Jan 09, 2017 in Topic: Home Appraisals
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The system costs $21,000 newly installed on a 2,400 sq. ft. 4/3, two-story home in East Montgomery County.
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Asked by: Consumer
Posted: 4 months ago
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Diamond
Darby Grimmett
about 4 months ago
Hi John,

I'm glad you are thinking ahead about the return on your investment for improvements made to your property! When you begin thinking about any improvements to your property you'll want to consider, 1) is the sole purpose for your enjoyment or resale, 2) If for resale, will the improvements assist in the property selling quicker and for more money, 3) are the improvements something that increase the desirability of the home to today's buyers 4) What is your current cost basis in the home and will making the improvements put you over market for your neighborhood, etc, etc.

As the owner of a local, residential appraisal company, I can tell you that while there will be an adjustment given if favor of the subject property for the installation of solar panels as an upgrade, it will not necessarily equate to the amount of the expense you incurred to install them. The total amount of the adjustment is of course related to the entire property as a whole and the rest of the neighborhood / area. You mentioned you have a 2,400 sf, 4 bedroom, 3 bath home in East Co. More information would be needed about the property, such as other upgrades, in order to accurately compare to the other comparables in the neighborhood. Only by looking at the entire picture, can you accurately assess whether the investment is worth your while. In other words, do other properties in the area of solar panels? Is the rest of the home compatible with the panels and energy efficient? Is your home upgraded with hard woods, updated baths and kitchen, good curb appeal, fresh paint and carpet, recent roof and mechaniclas, etc. If you were selling a non-(cosmetically) updated home with an older roof, windows and older mechanicals, then solar panels is not where I'd spend $21K.

Hope this helps! Happy to discuss your specific situation further if you want to reach out. I can go into more detail than I can here.

Darby Grimmett / KW / darby@darbygrimmett.com / 936-827-9217


about 4 months ago
Diamond
Francois Delille
about 4 months ago
Hi John,

An appraiser may not value the solar panel up to the cost of it. These are still relativelly new and not all appraisal companies have clear guidelines about how to value them.
However, based on my own experience, certain buyers will value it greatly. I worked for a very techy couple moving from Austin a few month ago and they wanted a house with solar panels as well as many other home automation innovations. They were willing to pay more for such features and did not care wether the appraiser would value it the way they did.

In short, solar panels will be a valuable feature for certain buyers but an appraiser may not value it as much as you or the buyer do.

Best,
francois@cozy-homes.com / 713 397 8857


about 4 months ago
Silver
Andrea Cloud - Wagner
about 4 months ago
That's a great question, John. While there are not as many buyers that appreciate the value of solar panels, there certainly are those that do. The link below is to a great article in Tierra Grande magazine, which is published by the Real Estate Center at Texas A & M. It discusses some of the information you have already received in the answers above, like the fact that it may be difficult for appraisers to find comps in your neighborhood with solar panels. Few or no comps make it difficult for appraisers to quantify the additional value the solar panels bring. Plus the article discusses other interesting facts, such as the exemption from inspection that TREC allows for solar panels. It also discusses documentation suggestions for the state to implement to help further the solar panel movement and its value to homes. Those are things you could follow up on with your legislator, as state implementation of solar panel documentation (including fields in MLS for solar panel info, having appraiser review home's utility bill to verify the system's output, etc.) could eventually help your bottom line at resale.

Hope this information helps!

Andrea Cloud Wagner
Cloud Realty
281-359-9999
www.cloudrealtytx.com


Source:


https://www.recenter.tamu.edu/articles/tierra-grande/Here-Comes-Sun

about 4 months ago
Silver
Dominik Szabo
about 4 days ago
Dear John,
In short appraiser's will not know what to do with solar panel and other such upgrades. So do not assume it will affect the home price at all.

Dominik Szabo
Brockway Realty L.L.C.
(832) 844 1724
DominikRealtor.com
** The Doctor of Real Estate in Houston Texas **
" Professional, Courteous, and Informed "


about 4 days ago
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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