Solar and Real Estate
There are currently 1 million solar photovoltaic (PV) residential solar systems installed in the United States. It took 40 years to reach that number. According to the Solar Energy Industry Association (SEIA), it is predicted that in the next two years, one million more will be installed.
As more homes with solar go on the market, it’s important that solar installations are properly valued and accurately recorded in the multiple listing service (MLS) when a home is sold. This lays the groundwork for a virtuous cycle in which homeowners are eager to invest in renewable energy because they know that they can recover some or all of their investments at the time of the home sale (see graphic courtesy of the U.S. Department of Energy SunShot Initiative at right; click for full infograhpic).
Education for Real Estate Professionals
Real estate professionals who understand the basics of solar and know how to market the benefits of an installation will have a market edge. For most real estate agents and appraisers, assessing the value of solar is a new frontier. With funding from the U.S. Department of Energy, Elevate Energy is creating two online Continuing Education courses. Both classes will be available in May 2017.
Sign up to receive information about the classes here.
- For Real Estate Agents: Selling the Sun: Listing, Marketing, and Establishing Value for Solar PV Homes. Read more about the class.
- For Appraisers: Valuing Residential Solar Photovoltaic Systems for Appraisers. Read more about the class.
Related Research & Reports
- Capturing the Sun: A Roadmap for Navigating Data-Access Challenges and Auto-Populating Solar Home Sales Listings is a report that helps solar and real estate advocates take the first step toward an improved process for listing, valuing, and closing these homes. The report supports a vision of industry stakeholders working together to make information about solar homes more accessible to home buyers and sellers.
- Here Comes the Sun: The Value of Residential Solar – The Real Estate Center at Texas A & M University examines the solar PV sector and recent research involved in accurately estimating any market premium for the systems at resale.
- Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes – This study from Berkeley National Laboratory quantifies the value of rooftop photovoltaics on homes that sold across eight states and 15 years.
- Appraising into the Sun: Six-State Solar Home Paired-Sales Analysis – This study from Berkeley National Laboratory shows that home buyers across the country have been willing to pay a premium for a home with a homeowner-owned solar array.
- Solar Field Guide – This guide compiles solar photovoltaic resources like studies, secondary mortgage market guidelines, and general descriptions of the systems and how they work, in one easy-to-access document.
- The Impact of Photovoltaic Systems on Market Value and Marketability – The Colorado Energy Office and the Colorado Chapter of the Appraisal Institute support the conclusions that photovoltaic (PV) systems typically increase market value and nearly always decrease the time a home is on the market.
- A Study on the Residential Market Valuation of EPS and Solar PV in the Greater Portland and Bend, Oregon Markets – This study by the Energy Trust of Oregon finds that there is an increased market value associated with residential PV systems in the study area.