Solar Energy Systems Can Increase Home Values: The Appraisal Journal
March 29, 2016 08:00 AM
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.
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.
“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.
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The Appraisal Institute is a global professional association of real estate appraisers, with nearly 20,000 professionals in almost 60 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS and AI-RRS designations. Learn more at www.appraisalinstitute.org.