PUBLISHED: JAN. 15th 2023
Are you ready to take the solar plunge and add some considerable value to your home?
Much like taking a plunge in ice water, changing from the familiar to the unfamiliar can be unsettling but if you know about polar plunges or hopping into cold water you also know it revitalizes you, your vision clears and as the initial shock wears off you realize you feel better.
To decide to to go solar is much like this and it brings exponential value, yet to be able to do so you must be willing to relinquish and vanquish the toxic current familiar relationship you likely currently hold with the utility company.
The Utilities take and take, the cost goes up and up, did you ever ask yourself is this a healthy relationship, is this normal, wait everyone else was doing it so it must be okay. You may have even had some friends who said they went solar and it worked great for them.
Yet, this was them and you do not know what to expect as it is unknown still and where is the value in making the shift to solar. You may have been working up the courage to try something new or you may not have even noticed that you were in a unilateral one directional toxic relationship.
Solar power, ultimate in home equity workout
There is a better way and it allows you to give back to yourself first, to invest at home, to have power over your energy. Sounds to good to be true, it even protects you and those you care about from inflation. You have options and I am here to pave a path to understanding the value add that is at the heart of going solar.
There are many that think it is about savings, that is not truly what I believe is the biggest value. The biggest value is ownership, centering of your control, building investment and security at home, reclaiming your power; as the way you do anything is truly the way you do everything. The hard truth many of us face is that we do not always see what is getting in our own way because it becomes familiar and personal even when it is not necessarily in our best interest.
When you go solar, you will not only be reducing your energy costs in the long run, but in some states like VA you may also be eligible for tax exemptions on the increase in equity from your solar installation along with being paid for your energy production.
What! Did I hear that right, I can get paid for my energy productions when going solar? Yes, you heard that right. See our article on how you get paid with solar renewable energy credits: https://solarfiguy.website/maximizing-your-virginia-solar-renewable-energy-credits/
But where do you start when it comes to getting your solar-powered home appraised or reappraised post going solar?
First things first, it’s important to find an appraiser who is a solar pro and knows the ins and outs of valuing solar homes. Ask around for recommendations from solar installation experts or search for appraisers who have certifications specifically in solar home valuations.
Settle in, we are here to plug you into solar success
For all you aspiring solar homeowners wishing and longing to know what is in it for you in the long-run when going solar. How does going solar add to my homes value long-term, how does my property post solar get appraised and what are the standards or are there any?
When getting a solar home property evaluated, the Federal National Mortgage Association (FNMA), often known as Fannie Mae, is an excellent resource. They stipulate that when evaluating a property with a solar energy system, an appraiser must take into account the cost, state of the system, and effect it has on the property’s value.
They frequently employ one of the cost, sales comparison, or revenue methodologies when determining the value of a solar energy system. It’s crucial to remember that the appraiser needs to be knowledgeable about solar energy systems and how they impact property values.
Top 3 ways your home’s equity with solar is calculated
- Cost Approach: The appraiser will estimate the cost to replace the solar energy system, considering the cost of materials and labor.
- Sales Comparison Approach: The appraiser will compare the subject property to similar properties that have solar energy systems and adjust the value accordingly.
- Income Approach: The appraiser will estimate the income that the solar energy system generates, such as through net metering or a power purchase agreement and use that to determine the value of the system.
Solar Home Appraisals, what to know
For further information to better prepare yourself, help a friend or family member go check out Fannie Mae guidelines on their website (https://www.fanniemae.com/) for more information.
The Residential Green and Energy Efficient Addendum form number 820.06 is used as a form for accounting for energy efficiency upgrades and investments such as solar to your home. Per the Green Realtor website where we found it, we are resharing the resource here:
When it comes to the appraisal, make sure to provide the appraiser with detailed information about your solar system including the type and size of panels, the date of installation, and any warranties or guarantees. You will want to provide during appraisal any documentation you have related to your solar system, such as energy production data or any certifications or permits related to the installation.
Do be sure to keep in mind to consider the cost of the solar system and the potential savings it provides when determining the value of your home.
Solar is the way to go for a sustainable future and worry-free living
The bottom line is, installing solar panels on your home can provide significant financial benefits, including reduced energy costs and potentially increased property value. By working with a qualified appraiser and providing detailed information about your solar system, you can ensure that your investment is properly valued and enjoy the many benefits of clean, renewable energy for years to come. So why wait? Let’s add some solar sparkle to that home of yours and watch the value soar!
All of the The Solar-FI Guy solar installs come with an ease of mind guarantee that extends past the manufacturers warranty and allows you to rest easy knowing the solar investment you are making is going to be around for the long haul.
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