E-Bay used modules [RE-wrenches]

[Antony Tersol]

I found this on-line some time ago, but can't find the bookmark. 
Perhaps a search under Google of the appropriate terms would find the
exact article.  I believe I was able to access the article and read it
(perhaps in .pdf form)

According to the Appraisal Journal, which is a journal for professional
appraisers, in the article "Evidence of Rational Market Valuations for
Home Energy Efficiency": for each $1 an improvement saves in utility
costs, the value of a home increases $20.

Your $723/year would equal $14,460 in increased valuation.  If it were
in PG&E territory replacing top-tier use (at 25.8 cents per kwh), it
would be worth about $34,000.

Get the article to the realtor so he can provide copies to the
appraisers involved.

Realtors are usually motivated by the size of their commission and the
ease of earning it.  It is not a profession that people choose because
of their altruistic nature.  Perhaps they would respond to the security
aspects:

“Aside from its obvious environmental benefits,
solar and other distributed energy resources can
enhance our energy security.” Garman adds:
Distributed generation at many
locations around the grid increases
power reliability and quality while
reducing the strain on the
electricity transmission system. It
also makes our electricity
infrastructure less vulnerable to
terrorist attack, both by distributing
the generation and diversifying the
generation fuels. So if you’re
engaged in this effort, it is my view
that you are also engaged in our
national effort to fight terrorism.

Address to UPEx ’01 Photovoltaic Conference, October 2, 2001. Secretary
Garman’s portfolio is efficiency
and renewable energy.

Good luck.

Antony

btw, Mo and Graham, just got back from Hoover Wilderness, North East of
Yosemite, and the fish were biting.

----- Original Message -----

Date: Mon,  9 Sep 2002 01:03:47 +0000
From: Graham Owen <graham at solarexpert.com>
Subject: E-Bay used modules


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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