<html><body><span style="font-family:Verdana; color:#000000; font-size:10pt;"><div>Keith & Joel,</div>
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<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>
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<div>Using the gross sales price that the customer paid for PV as a valuation number was also shot down.</div>
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<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>
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<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>
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<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>
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<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>
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<div>Jamie Johnson</div>
<div>NABCEP Certified PV Technical Sales Professional PVTS012911-44</div>
<div>NABCEP Certified Solar PV Installer 031310-118</div>
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<div>General Manager</div>
<div>SOLAR POWER ELECTRIC<BR></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: Keith Cronin <<a href="mailto:electrichi01@yahoo.com">electrichi01@yahoo.com</a>><BR>Date: Tue, March 22, 2011 2:57 am<BR>To: RE-Wrenches <<a href="mailto:re-wrenches@lists.re-wrenches.org">re-wrenches@lists.re-wrenches.org</a>><BR><BR>
<DIV style="BACKGROUND-COLOR: #fff; FONT-FAMILY: arial, helvetica, sans-serif; COLOR: #000; FONT-SIZE: 10pt">
<DIV>Hi</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">Was wondering if anyone has any new data points on the additional value a PV system adds to the home?</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">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>
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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">Realizing alot has to do with location, current cost per kWh of electricity etc.</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">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>
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<DIV>Keith</DIV></DIV>
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