Solar Energy Systems Can Increase Home Values: The Appraisal Journal

CHICAGO (March 29, 2016) – Homes with host-owned solar photovoltaic systems are sold at a premium compared to homes without PV systems, according to a study reported in an article published this week in The Appraisal Journal.

image

The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute, the nation’s largest professional association of real estate appraisers. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Appraisal Institute.

image

An Analysis of Solar Home Paired Sales across Six States,” by Sandra K. Adomatis, SRA, LEED Green Associate, and Ben Hoen, examines a first-of-its-kind study that uses appraisal methods to compare sale prices of homes with host-owned PV systems across six states to the sale prices of similar homes without PV systems. The study found that homes with PV systems sold at a premium in all six states and supports the use of cost- and income-based PV premium estimates when paired sales analysis is impossible.

Sandra K. Adomatis, SRA, LEED Green Associate, is involved in the development of educational materials in the Appraisal Institute’s Valuation of Sustainable Buildings Professional Development Program. She is the author of Residential Green Valuation Tools, an author and co-author of articles in The Appraisal Journal and assisted in the development of the Appraisal Institute’s Residential Green and Energy-Efficient Addendum.

Ben Hoen is a staff research associate in the electricity markets and policy group at Lawrence Berkeley National Laboratory. He has a master’s degree in environmental policy from Bard College, and bachelor’s degrees in finance and business from the University of Maryland; he is an Affiliate member of the Appraisal Institute. He has authored or co-authored papers published in the Journal of Real Estate Research, Contemporary Economic Policy, and Energy Economics as well as a chapter in the book Towers,

Turbines and Transmission Lines: Impacts on Property Values (Wiley-Blackwell).

Read “An Analysis of Solar Home Paired Sales across Six States” in the Winter issue of The Appraisal Journal.

Also in The Appraisal Journal’s Winter 2016 issue:

Residential Units of Comparison—A Common Denominator,” by Arlen C. Mills, MAI, SRA, outlines a method for determining the common denominator by which the sale prices of multifamily residential properties can be compared. Identifying and using the appropriate units of comparison enable appraisers to make effective price comparisons when generating an opinion of value.

Outdoor Billboard Real Property Valuation,” by Robert Thomas Helmer, Ph.D., MAI, presents a hypothetical case study example to demonstrate a methodology for analyzing and valuing outdoor advertising billboard real property in the current market.

Source: The Appraisal Institute

Written by greenlivingguy

The Green Living Guy, Seth Leitman is a green living expert, celebrity and Editor of the McGraw-Hill, TAB Green Guru Guides. Seth is also an Author, Radio Host, Reporter, Writer and a Environmental Consultant on green living. The Green Living Guy writes about green living, green lighting, the green guru guides and more. Seth's books range from: # Build Your Own Electric Vehicle by Bob Brant and Seth Leitman (2nd and 3rd editions) # Build Your Own Plug-in Hybrid Electric Vehicle by Seth Leitman # Build Your Own Electric Motorcycle by Carl Vogel # Green Lighting by Seth Leitman, Brian Clark Howard and Bill Brinsky # Solar Power For Your Home by David Findley # Renewable Energies For Your Home by Russel Gehrke # Do-it-Yourself Home Energy Audits by David Findley # Build Your Own Small Wind Power System by Brian Clark Howard and Kevin Shea # and more green living books to follow.