New appraisal tool for solar-powered properties

WASHINGTON – Feb. 7, 2012 – Appraisers, real estate professionals and loan underwriters now have access to a new resource that, according to developers, allows them to more accurately assign value to photovoltaic (PV) systems and keep them from being undervalued – or overlooked completely – in property deals.

PV Value uses an Excel spreadsheet, tied to real-time lending data and market fluctuations, to assess the worth of a home’s solar-power system. Sandia National Laboratories and Solar Power Electric, a solar integration firm, created the electronic form.

According to co-developer Geoff Klise of Sandia, “Previous methods for appraising PV installations on new or existing construction have been challenging because they were not using standard appraisal practices.” He says appraisers usually determine the value of a home improvement based on similar properties with like improvements, as well as market conditions. “If there aren’t any PV systems nearby,” he notes, “there is no way to make an improvement comparison.”

Source: “New Tool Standardizes Appraisals for Solar-Powered Properties,” MortgageOrb.com (02/03/12)

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