[RE-wrenches] Value of PV system to a home

[North Texas Renewable Energy Inc]

While the Appraisal Institute model is about the only widespread reference
point available, it too lacks strong credibility due to the perception that
it's out dated information and nothing else confirms its conclusion. Many in
the anti-RE realm point to the fact that F/F&FHA don't support the premise
that energy saving has real value and use F&F as a valid reason, along with
the "...no credible evidence" argument, not to.
F&F are private mortgage investment corporations that are supported with
taxpayer money, money that kept them from collapsing under the weight of
their own bad mortgage investments. Their dislike of any pro-renewable
program [PACE comes instantly to mind] is grounded in their perception that
the low risk design that makes PACE so desirable to cities and homeowners is
a financial risk to the private investors returns.
The logic is: homeowner with PV defaults, taxing authority bonds are exempt
from risk, investment banks are left holding the bag, investors lose
pennies.
Those investors lobbyists pushed back up the chain of authority to, among
other things, seriously wound California's own voter approved and taxpayer
friendly version of PACE. As usual the taxpayers lost much of the the
momentum that had brought them so close to creating another national
standard for renewable energy financing without taxpayers having to foot the
bill before the investment cartel pulled the rug out from under us.
The FHA, being nothing more than a hand-puppet for the mortgage industry,
nodded in agreement and brandished their rubber stamp of approval.
The factual and irrefutable data proving beyond any doubt that homes &
businesses with PV are worth more should be an immediate goal for the RE
industry. While that proof, if it even exists, might not open the investment
floodgates, it would however open more doors for investors which moves our
industry a step closer to reaching critical mass.

my 2¢
Jim Duncan
PV installer & financial know-it-all

          From: Jamie Johnson <jjohnson at spefl.com>


          Keith & Joel,

          The old metric was $20 in value for each $1 saved in energy,
however the Appraisal Institute has not supported that valuation metric for
some time now and neither has Fannie, Freddie or FHA.

          Using the gross sales price that the customer paid for PV as a
valuation number was also shot down.

          And unfortunately most regional MLS databases don't provide a
category for solar electric, solar hot water or solar pool heaters, so that
makes it difficult for an appraiser to use the sales comparison approach.

          A year ago I began developing a valuation model for PV for the
Appraisal Institutes Educational Committee and they are now incorporating
parts of it into their training programs on "valuation of sustainable
buildings" for appraisers.  Earlier this year DOE awarded a grant to Sandia
Natl Lab to essentially do the same thing for the Solar America Cities
program (soon to be the Solar America Communities program) and they have
since picked up my work on the valuation model.

          A proof of concept spreadsheet (which takes all of the fun out of
it) and pdf explanation of the valuation model should be released this
summer.  I will provide the download link to the list when it is available.

          It's important to note that any valuation model for PV needs to be
accepted by Fannie, Freddie and FHA before it is relied on and quoted by the
PV industry.  There are currently ongoing discussions between FF&F, AI and
DOE on PV valuations and hopefully they will resolve the PV valuation issues
for loan transactions soon.

          Jamie Johnson
          NABCEP Certified PV Technical Sales Professional PVTS012911-44
          NABCEP Certified Solar PV Installer 031310-118

          General Manager
          SOLAR POWER ELECTRIC






            -------- Original Message --------
            Subject: [RE-wrenches] Value of PV system to a home
            From: Keith Cronin <electrichi01 at yahoo.com>
            Date: Tue, March 22, 2011 2:57 am
            To: RE-Wrenches <re-wrenches at lists.re-wrenches.org>


            Hi


            Was wondering if anyone has any new data points on the
additional value a PV system adds to the home?


            If someone spends $X for a system and saves $Y a month/year, how
is this being calculated?


            Do we have actuaries with enough empirical data to suggest what
the numbers would look like?


            Realizing alot has to do with location, current cost per kWh of
electricity etc.


            Could have swore there were some studies done to imput the value
of two homes on the same street, one with solar and one without- for some
granular details on the delta in values.


            Thanks


            Keith




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