Valuing a used system [RE-wrenches]

David Palumbo, Independent Power & Light ipl at sover.net
Mon Feb 5 13:50:36 PST 2007


Allan,

I would think between 65 to 75% is fair. It has to be enough of a discount
to make the buyer want to own the system. Will there be a warranty? If the
price is too high the buyer is better off with new equipment.

Dave Palumbo


-----Original Message-----
From: Allan Sindelar [mailto:allan at positiveenergysolar.com]
Sent: Monday, February 05, 2007 2:03 PM
To: New wrenches posting
Subject: Valuing a used system [RE-wrenches]



Wrenches:
Your opinions and guidance, please:

We just turned an offgid system into a batteryless grid-tied system for a
customer whose mountain property had the grid come in. Battery failure (his
own admitted lack of care) was the catalyst for the change. His array of 12
BP585s from 2002 now feeds a Sunny Boy 1100.

So we have just removed most of a power system in perfect working order,
that we would like to resell and reinstall. We also have an interested
offgrid customer who needs to seriously upgrade his system for a home now on
the market.

The equipment is nearly current: Outback PS4DC, Xantrex SW4024 with T-240,
Solar Boost 50, Tri-Metric: very standard top-line stuff for 2002. It's
pretty much wired up, and includes cables, interconnects, conduit and other
small parts. It could be easily reassembled in a new location, with the
addition of batteries, array and racking, making a perfectly adequate system
that would not hinder the sale of a nice offgrid home.

Here's the question: What simple percentage of original sale price would you
use to value a equipment in this situation? Both the seller and the
interested buyer are customers of ours, so the percentage should reflect
what is fair to both, rather than the best deal for either buyer or seller.
We will take a percentage for consignment sale out of the seller's proceeds,
so that issue should not be considered as part of this question. Also, we
may or may not be asked to install the equipment, so that too should stay
out of the question.

Thank you for any guidance.
Allan at Positive Energy


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