What I have been putting forth to our customers and potential customers, is that a PV system when looked at like an appliance is simply equal to the value of the energy it produces over a given period....for straight grid tied systems I have used what I think is a conservative number of 20 years and then I multiply that by today's energy costs.......so if a system is installed in Oregon and electricity is $.09/kWh and the system is expected to produce 4500kWh per year then that system would add 4500kWh x $.09 x 20 years = $8100 in value to their property.....in Oregon......<br>
Certainly you could add average utility price increases over time to the value of the energy produced, as well as reductions in system output overtime as equipment degrades.....additionally if a party is buying a house equipped with a PV system they may not want to calculate a full 20 years into that formula if the system was installed years earlier.......I prefer to use conservative numbers in my formula inputs, however the argument could be made stating that the 20 year time span is too short and if the lifetime is potentially double that the value of the system also doubles..... <br>
In my mind an off grid system can be more directly tied to the cost of the equipment as the grid is not an alternative to the power that is supplied.....<br>Finally, we have never had a customer disagree with this basic approach, however it still falls flat on its face if the customer is not planning on moving or selling their property!<br>
<br>-- <br>Sunny Regards,<br>Kirpal Khalsa<br>NABCEP Certified Solar PV Installer<br>Renewable Energy Systems<br><a href="http://www.oregonsolarworks.com">www.oregonsolarworks.com</a><br>541-218-0201 m<br>541-592-3958 o<br>
<br><div class="gmail_quote">On Tue, Mar 22, 2011 at 7:44 PM, Exeltech <span dir="ltr"><<a href="mailto:exeltech@yahoo.com">exeltech@yahoo.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">
<table border="0" cellpadding="0" cellspacing="0"><tbody><tr><td style="font: inherit;" valign="top"><b><span style="font-weight: normal;">I spoke last October with the Appraisal Journal, and specifically with Rick Nevin,<br>
author of the referenced articles.<br><br></span></b>Mr. Nevin stated a recent review conducted by the Appraisal Journal confirmed<br>the information in the reports is as applicable today as it was when the study<br>was conducted, and even more so given the increased cost of
energy that's<br>occurred since the study was published.<br><br>Dan<br><br>--- On <b>Tue, 3/22/11, Jamie Johnson <i><<a href="mailto:jjohnson@spefl.com" target="_blank">jjohnson@spefl.com</a>></i></b> wrote:<br>
<blockquote style="border-left: 2px solid rgb(16, 16, 255); margin-left: 5px; padding-left: 5px;"><br>From: Jamie Johnson <<a href="mailto:jjohnson@spefl.com" target="_blank">jjohnson@spefl.com</a>><br>Subject: Re: [RE-wrenches] Value of PV system to a home<br>
To: "Keith Cronin" <<a href="mailto:electrichi01@yahoo.com" target="_blank">electrichi01@yahoo.com</a>>, "RE-wrenches" <<a href="mailto:re-wrenches@lists.re-wrenches.org" target="_blank">re-wrenches@lists.re-wrenches.org</a>>, "Joel Davidson" <<a href="mailto:joel.davidson@sbcglobal.net" target="_blank">joel.davidson@sbcglobal.net</a>><br>
Date: Tuesday, March 22, 2011, 5:01 PM<br><br><div><span style="font-family: Verdana; color: rgb(0, 0, 0); font-size: 10pt;"><div>Keith & Joel,</div>
<div> </div>
<div>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.</div>
<div> </div>
<div>Using the gross sales price that the customer paid for PV as a valuation number was also shot down.</div>
<div> </div>
<div>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.</div>
<div> </div>
<div>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.</div>
<div> </div>
<div>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. </div>
<div> </div>
<div>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. </div>
<div> </div>
<div>Jamie Johnson</div>
<div>NABCEP Certified PV Technical Sales Professional PVTS012911-44</div>
<div>NABCEP Certified Solar PV Installer 031310-118</div>
<div> </div>
<div>General Manager</div>
<div>SOLAR POWER ELECTRIC<br></div>
<div><br></div>
<div><span style="font-size: 8pt;"><span style="color: rgb(51, 102, 255);"><b><span style="color: rgb(0, 0, 255);"><img src="" title="signature image" alt="" border="0"></span></b></span></span></div>
<div> </div>
<div> </div>
<blockquote style="border-left: 2px solid blue; padding-left: 8px; font-family: verdana; color: black; margin-left: 8px; font-size: 10pt;">
<div>-------- Original Message --------<br>Subject: [RE-wrenches] Value of PV system to a home<br>From: Keith Cronin <<a rel="nofollow" href="http://mc/compose?to=electrichi01@yahoo.com" target="_blank">electrichi01@yahoo.com</a>><br>
Date: Tue, March 22, 2011 2:57 am<br>To: RE-Wrenches <<a rel="nofollow" href="http://mc/compose?to=re-wrenches@lists.re-wrenches.org" target="_blank">re-wrenches@lists.re-wrenches.org</a>><br><br>
<div style="background-color: rgb(255, 255, 255); font-family: arial,helvetica,sans-serif; color: rgb(0, 0, 0); font-size: 10pt;">
<div>Hi</div>
<div><br></div>
<div style="background-color: transparent; font-style: normal; font-family: arial,helvetica,sans-serif; color: rgb(0, 0, 0); font-size: 13px;">Was wondering if anyone has any new data points on the additional value a PV system adds to the home?</div>
<div><br></div>
<div style="background-color: transparent; font-style: normal; font-family: arial,helvetica,sans-serif; color: rgb(0, 0, 0); font-size: 13px;">If someone spends $X for a system and saves $Y a month/year, how is this being calculated?</div>
<div><br></div>
<div style="background-color: transparent; font-style: normal; font-family: arial,helvetica,sans-serif; color: rgb(0, 0, 0); font-size: 13px;">Do we have actuaries with enough empirical data to suggest what the numbers would look like?</div>
<div><br></div>
<div style="background-color: transparent; font-style: normal; font-family: arial,helvetica,sans-serif; color: rgb(0, 0, 0); font-size: 13px;">Realizing alot has to do with location, current cost per kWh of electricity etc.</div>
<div><br></div>
<div style="background-color: transparent; font-style: normal; font-family: arial,helvetica,sans-serif; color: rgb(0, 0, 0); font-size: 13px;">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.</div>
<div><br></div>
<div style="background-color: transparent; font-style: normal; font-family: arial,helvetica,sans-serif; color: rgb(0, 0, 0); font-size: 13px;">Thanks</div>
<div><br></div>
<div>Keith<br></div></div></div></blockquote></span></div><br></blockquote></td></tr></tbody></table><br>
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