E-Bay used modules [RE-wrenches]

[matthew tritt]

Graham,

I ran into this question a while ago too. Logic suggests that the home
should be valued upwardly to cover the original expense of installing the
system. Logic also suggests that the original value of the system be
reduced every year thereafter to address normal degradation of system
components (see: Write-Off) and reduced PV output over time.

On the Other hand, since a PV system is designed to reduce the expense of
owning a home over a period of at least 20 years, there needs to be some
sort of formula invented to accurately weigh initial costs, system
degradation and long-term energy savings, both financial AND environmental.

It seems to me that the state or federal (fat bloody chance!) government
should allow a break in property and income taxation to compensate for the
off-set in production of greenhouse gasses enabled by the operation of PV
and wind systems, and paid for by the property owner, both original and
consecutive.

Such a system would be a continuing incentive to install and own alternative
energy systems.


Matt
----- Original Message -----
From: "Graham Owen" <graham at solarexpert.com>
To: <RE-wrenches at topica.com>
Sent: Sunday, September 08, 2002 6:03 PM
Subject: E-Bay used modules [RE-wrenches]


> 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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