Appraisal Institute Members go for Solar Valuation Study

Greensmith Energy Management

Two Appraisal Institute members contributed to a landmark study

Released by the U.S. Department of Energy’s Lawrence Berkeley National Laboratory, this study finding home buyers are always willing to pay more for solar homes. That’s right folks, homes with host-owned solar photovoltaic energy systems.

Some of the people involved for starters are Sandra K. Adomatis, SRA, of Punta Gorda, Florida, and Thomas O. Jackson, Ph.D., MAI, of College Station, Texas. A multi-institutional research team of scientists led by Berkeley Lab in partnership with Sandia National Laboratories. In addition, universities and real estate appraisers with the appraisal Institute were involved too.

Solar Panels on Rooftop Source: Greensmith Energy Management Systems

So in October 2011, the Appraisal Institute created the federal Sensible Accounting to Value Energy (SAVE) Act.

Consequently, the Act improves the mortgage underwriting process. All thereby insuring energy costs are included in the value of the home. In addition it was sponsored by Sens. Michael Bennet, D-Colo., and Johnny Isakson, R-Ga.  Most importantly, the SAVE Act instructs federal loan agencies to assess a borrower’s expected energy costs when financing a house.

In conclusion, the Appraisal Institute contributed to the Green MLS Tool Kit, starting in April 2010. Furthermore, the tool kit created so Realtors adding a green initiative. One needed for their local multiple listing service. The tool kit providing guidance on creating enhanced data in the MLS. Thereby empowering appraisers to make well-supported comparisons, analyses and adjustments.

Furthermore, Berkeley Lab’s research funding through the U.S. Department of Energy SunShot Initiative. Consequently, the SunShot Initiative is a collaborative national effort. As a result to aggressively driving solar innovation. Thereby making solar energy fully cost-competitive with traditional energy sources. All before the end of this decade.

Finally, the study – “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes”. It states buyers will pay $4 per watt of PV installed. In conclusion, that’s across various states, housing, PV markets and home types. Most noteworthy, this equates to a premium of $15,000 for a typical 3.75 kW PV system. I’ve got more on my roof!!

In conclusion and for the entire story at the Appraisal Institute

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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.

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