E-Bay used modules [RE-wrenches]

[Graham Owen]

Wrenches,

I have a question.  How does one determine the TRUE resale value of 
residential grid-tie PV?  I work closely with several real estate 
companies in L.A. and occasionally I get asked to look at solar 
equipment on homes going through sales and escrow.  Last week was the 
first time I was asked to evaluate a home with a grid-tie PV system.  I 
did not install this system and the workmanship looked very 
professional.

The system is 5kW DC without batteries.  The original homeowner claims 
the system cost and adds $50,000 to the homes value.  The realtor wanted 
to know how much money this systems saves annually.  I calculated 5kW x 
5.5 sun hours = 27.50 kWh x .70 (DC to AC conversion losses) = 19.25 
usable kWh annual daily average x 365 days = 7,026 kWh annually x 11 
Cents per kWh (LADWP) = $723.00. The Realtor did his math and concluded 
that I have to be wrong because a 70-year payback is ridiculous. I told 
the Realtor that the seller took a cash rebate for about $24,000 and it 
seems fair to increase the value of the home by about $25,000.  The 
Realtor disagreed and believed a ten-year payback is reasonable and the 
value of the system should be $7,230.00

The realtor was not receptive to arguments about the value of reducing 
air pollutants or even the luxury, high tech, futuristic appeal this 
home provides.  I did mention that the monetary payback time quickens 
whenever the price of electricity increases.  The realtor mentioned that 
most home improvements do not yield their installed cost when the home 
is sold and $7,230 would most likely be added to this homes value.  I 
told him he was wrong because the resale value of the used equipment on 
the home was worth over $20,000.00. This got his interest and he is 
going to look into and learn more about PV.

I am wondering if there is any way to educate real estate professionals 
about PV.  These people need to have a basic concept of PV technology 
and it’s TRUE value.  I wonder how one gets this information introduced 
into Realtor continuing education classes?

Graham Owen

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