The Appraisal Institute partnered with the Colorado Energy Office to provide an analysis of the impact of solar PV systems on the home-buying process. The study sought to better understand the impact, if any, that solar PV has on the sales transaction process.
According to the study, homeowners in the Denver metro area over time increasingly have sought residential homes with PV systems.
“While the study shows that solar PV systems typically increase market value, appraisers with knowledge and experience in this area are uniquely positioned to provide credible, reliable opinions of value and accurately reflect what’s happening in a particular market,” said Appraisal Institute President Richard L. Borges II, MAI, SRA.
A PV system is a solar electric system that is designed to convert sunlight into electricity. The Appraisal Institute worked with the Colorado Energy Office to analyze 30 homes in the northwest Denver metropolitan area that sold and closed between Jan. 1, 2011, and May 31, 2013, with properties ranging in sale price from $200,000 to $680,000. The 30 case studies each consisted of a single-family residential home that had a PV system installed at the time of sale.
This report was reviewed by professionals of the Colorado Chapter of the Appraisal Institute prior to the publication and dissemination to real estate transaction stakeholders. These reviewers provided both review and comments per the terms of a memorandum of understanding, signed in October 2012 by Colorado Gov. John Hickenlooper and Appraisal Institute CEO Frederick H. Grubbe, which seeks to address a need for data in valuing homes with green and energy-efficient features.
“As a thought leader in green valuation at the local and national level, we were glad to be part of this important study,” Borges said. “Our organization takes pride in educating the public about the ways energy-efficient home features could impact home values.”
Working with the Colorado Energy Office on this study is the most recent example of the Appraisal Institute’s leadership in green valuation efforts.