Appraisal Should An Adjustment Be Made For Solar Panels Financed

When the system is collateral for the loan it should not be mortgaged over.

Appraisal should an adjustment be made for solar panels financed.

How many appraisers have boosted for solar on leased and non transferable systems. This can be avoided by refinancing the house to finance the system. Whether the solar panels are leased and owned also may affect the appraisal. Otherwise it s as much of a leased responsibility as it is a benefit given the uncertainties over the long term.

Many appraisers are taking the position that there is no added value and perhaps some diminished value with leased solar panels because the buyer must assume the lease. A primer presented by instructor mark buhler. Buhler has over 25 years of appraisal experience and specializes in the valuation of energy efficient homes which are increasingly. However if you do not own your panels whatever value that they may add cannot be included for an fha assessment.

This additional financial commitment makes it harder to market and sell the property. Solar panels financing through a loan that has since been paid in full means that you are now the owner of the system. If your solar panel system is financed via an unpaid loan you are obliged to make monthly payments to cover your debt ownership depends on the contract signed with the lender. The only solar system which deserves a boost in the appraisal analysis is an owned system.

The interest rate on a refinance is typically lower than a solar loan. For an overview of solar panels methods of valuation and challenges of appraising properties with solar check out our recorded webinar appraising solar panels.