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DOE Report: Homeowners Will Pay 15% More for Solar in Six States

Researchers found that “On average, PV systems (all of which were less than 12 years old) garnered premiums in each of the six states, with an average of $3.78/W.”

Here’s the Summary Abstract from the DOE’s SunShot Research:

Although residential solar photovoltaic (PV) installations have proliferated, PV systems on some U.S. homes still receive no value during an appraisal because comparable home sales are lacking. To value residential PV, some previous studies have employed paired-sales appraisal methods to analyze small PV home samples in depth, while others have used statistical methods  to analyze large samples. Our first-of-its-kind study connects the two approaches. appraising the sun report

It uses  appraisal methods to evaluate sales price premiums for  owned PV systems on single-unit detached houses that were also evaluated in a large statistical study. Independent appraisers evaluated 43 recent home sales pairs in six states: California, Oregon, Florida, Maryland, North Carolina, and Pennsylvania. We compare these results with contributory-value estimates—based on income (using the PV Value®tool), gross cost, and net cost—as well as hedonic modeling results from the recent statistical study.

The results provide strong, appraisal-based evidence of PV premiums in all states. More importantly, the results support the use of cost- and income-based PV premium estimates when paired-sales analysis is impossible. PV premiums from the paired-sales analysis are most similar to net PV cost estimates. PV Value® income results generally track the appraised premiums, although conservatively. The appraised premiums are in agreement with the hedonic modeling results as well, which bolsters the suitability of both approaches for estimating PV home premiums. Therefore, these results will benefit valuation professionals and mortgage lenders who increasingly are encountering homes equipped with PV, and need to understand the factors that can both contribute to and detract from market value.


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