<html><body><span style="font-family:Verdana; color:#000000; font-size:10pt;"><div>Some states have already changed their pace language to fix the first lien position issue to satisfy FF&F.</div>
<div> </div>
<div>Where FF&F (or FFF&F if you want to include the FHFA oversight arm) are focusing their attention at the moment is on the valuation issue.</div>
<div> </div>
<div>And, telling your customer (which most of us have probably done) that they will get a 20:1 return on annual energy savings doesn't necessarily translate over into an increased value if the house is sold.</div>
<div> </div>
<div>In a recent Congressional hearing discussing appraised values for energy efficient residences, out of 750 appraisals reviewed only 1 gave any additional value for energy efficient or RE improvements, <U><STRONG>the rest gave no additional value!</STRONG></U> This is unfortunate and is in the process of being addressed.</div>
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<div>IMHO the valuation issue is solvable, it just takes time to work through the process.</div>
<div> </div>
<div>From a lenders standpoint, if they are going to lend money against your collateral, they need to know what it is worth today, and what someone would be willing to pay for that collateral 1,2,3...........or 25 years from now. The PV salesperson's opinion of value has no real influence here.</div>
<div> </div>
<div>Once the valuation issue is solved, then I suspect the financing issue will be next, and then we can move further along the "Rogers bell curve"</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: #3366ff"><STRONG><SPAN style="COLOR: #0000ff"><IMG title="signature image" border=0 alt="" src="cid:sigimg1@80c2aa202ac11182086997f9edea4397"></SPAN></STRONG></SPAN></SPAN></div>
<div> </div>
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<BLOCKQUOTE style="BORDER-LEFT: blue 2px solid; PADDING-LEFT: 8px; FONT-FAMILY: verdana; COLOR: black; MARGIN-LEFT: 8px; FONT-SIZE: 10pt" id=replyBlockquote webmail="1">
<DIV id=wmQuoteWrapper>-------- Original Message --------<BR>Subject: [RE-wrenches] Value of PV system to a home<BR>From: "North Texas Renewable Energy Inc" <<a href="mailto:ntrei@1scom.net">ntrei@1scom.net</a>><BR>Date: Wed, March 23, 2011 9:40 am<BR>To: "RE-wrenches" <<a href="mailto:re-wrenches@lists.re-wrenches.org">re-wrenches@lists.re-wrenches.org</a>><BR><BR>
<DIV><SPAN class=656312812-23032011><FONT face=Arial>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.</FONT></SPAN><SPAN class=656312812-23032011><FONT face=Arial> </FONT></SPAN></DIV>
<DIV><SPAN class=656312812-23032011><FONT face=Arial>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. </FONT></SPAN></DIV>
<DIV><SPAN class=656312812-23032011><FONT face=Arial>The logic is: homeowner with PV defaults, taxing authority bonds are exempt from risk, investment banks are left holding the bag, investors lose pennies. </FONT></SPAN></DIV>
<DIV><SPAN class=656312812-23032011><FONT face=Arial>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. </FONT></SPAN></DIV>
<DIV><SPAN class=656312812-23032011><FONT face=Arial>The FHA, being nothing more than a hand-puppet for the mortgage industry, nodded in agreement and brandished their rubber stamp of approval.</FONT></SPAN></DIV>
<DIV><SPAN class=656312812-23032011><FONT face=Arial>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.</FONT></SPAN></DIV>
<DIV><SPAN class=656312812-23032011><FONT face=Arial></FONT></SPAN> </DIV>
<DIV><SPAN class=656312812-23032011><FONT face=Arial>my 2ยข</FONT></SPAN></DIV>
<DIV><SPAN class=656312812-23032011><FONT face=Arial>Jim Duncan</FONT></SPAN></DIV>
<DIV><SPAN class=656312812-23032011></SPAN><FONT size=2 face=Tahoma><SPAN class=656312812-23032011></SPAN><FONT face=Arial><FONT size=3>P<SPAN class=656312812-23032011>V installer & financial know-it-all </SPAN></FONT></FONT><BR></DIV></FONT>
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<BLOCKQUOTE style="BORDER-LEFT: rgb(16,16,255) 2px solid; PADDING-LEFT: 5px; MARGIN-LEFT: 5px">From: Jamie Johnson <<a href="mailto:jjohnson@spefl.com">jjohnson@spefl.com</a>><BR><BR>
<DIV id=yiv580696284><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)"><STRONG><SPAN style="COLOR: rgb(0,0,255)"><img title="signature image" border=0 alt="" src="cid:656312812@23032011-1f7e" wbeuser="jjohnson@spefl.com"></SPAN></STRONG></SPAN></SPAN></DIV>
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<BLOCKQUOTE style="BORDER-LEFT: blue 2px solid; PADDING-LEFT: 8px; FONT-FAMILY: verdana; COLOR: black; MARGIN-LEFT: 8px; FONT-SIZE: 10pt" id=yiv580696284replyBlockquote>
<DIV id=yiv580696284wmQuoteWrapper>-------- Original Message --------<BR>Subject: [RE-wrenches] Value of PV system to a home<BR>From: Keith Cronin <<A href="http://email03.secureserver.net/mc/compose?to=electrichi01@yahoo.com" rel=nofollow target=_blank ymailto="mailto:electrichi01@yahoo.com">electrichi01@yahoo.com</A>><BR>Date: Tue, March 22, 2011 2:57 am<BR>To: RE-Wrenches <<A href="http://email03.secureserver.net/mc/compose?to=re-wrenches@lists.re-wrenches.org" rel=nofollow target=_blank ymailto="mailto:re-wrenches@lists.re-wrenches.org">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>
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<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>
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<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></BLOCKQUOTE>
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