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

[Joel Davidson]

FHA and some other federally funded housing orgs have hardening of the arteries. Although EnergyStar has some problems too, they do have mortgages that recognize the value of energy efficiency. See http://www.energystar.gov/index.cfm?c=mortgages.energy_efficient_mortgages

If anyone doubts the immediate and future value of PV on a home, they can talk to the homeowners and realtors in my neighborhood who live with PV (as compared to PV wannabes with pv envy).

Joel Davidson

  ----- Original Message ----- 
  From: North Texas Renewable Energy Inc 
  To: RE-wrenches 
  Sent: Wednesday, March 23, 2011 6:40 AM
  Subject: [RE-wrenches] Value of PV system to a home


  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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