Are Solar Panels Included in Home Appraisal? A Comprehensive Guide by Arenahub Global

Undoubtedly solar is becoming very popular every day, this has led to many homeowners all over to start installing solar panels on their properties. Solar Panels do not only help in the reduction of your electricity bills,they also help to protect our environment as well as help homes to maintain modern looks.

However one question that lots of homeowners ask from time to time is “Are solar panels included in home appraisal? Do not worry, in this blog post, we’ll look at the theories around home appraisal, what they are and what they are not, how solar panels do factor into them, and the impact that solar panels do have on the general values of your property

What are Home Appraisals?

When we talk about home appraisals, we simply mean the unbiased estimation of the market value of a particular property.

When lenders want to lend you money, they require Appraisals so that they’ll be sure that the property in question is worth the amount they’re lending to you. Appraisers consider a lot of factors which we are going to look at below:

1.The Location of property and Neighborhood:

This is the value of similar properties that are in that particular Neighborhood.

2.Size and Layout:

Another thing appraisers put into consideration is the total square footage as well as the arrangements of rooms in the property.

3.Condition and Age: 

The general condition as well as the age of the property also plays a significant role, appraisers often look at the general state of your home, then also look out for some upgrades or repairs that might have been done in your home.

4.Amenities and Features:

They also pay attention to some special additions that might have effect on the value of such property, things like swimming pools, availability of modern kitchen or even energy efficient upgrades would be looked at.

Also as solar energy continues to grow in popularity, a lot of home buyers as well as appraisers have started taking into account some eco-friendly features such as the solar panels.

But how exactly do these features have an impact on a home Appraisal? you might ask, don’t worry we’ll explain in detail.

Are Solar Panels Considered in Home Appraisals?

The simple answer to this question is Yes, Solar panels can very well be included in a home Appraisal.

The only issue is that the degree to which it is going to affect the appraisal is definitely going to depend on a lot of factors. We are going to take a closer look at some of the things that appraisers often take into consideration when they’re evaluating a home that has solar panels.

1.Installation Quality and System Type

Most appraisers will look at how well your solar panels have been installed. If you have a professionally installed solar system such as the ones provided by a reputable company like Arenahub global will more likely add value to your homes than any system installed without a proper expertise.

Once you have a quality Installation that puts every safety standard into consideration, the chances of your home being valued higher by appraisers will increase no doubt.

2.Energy Savings and Cost Benefits

We already know that solar panels can significantly help you to reduce how much you spend monthly on your energy bills, Most home buyers are seriously getting attracted to the prospect of getting properties that will guarantee them long term savings.

Most Appraisers pay serious consideration on the financial benefits that comes with lower utility costs, to them it’s a positive sign that can help them increase the market value of the home. with this added values, appriasers see them as a premium advantage.

3.Increased Home Value and Market Appeal.

According to some reputable studies, Homes that have solar panels installed in them sells way more faster than similar homes without solar panel Installation.

However appraisers are likely to make some adjustments on values of homes upwards by some percentages that’s going to be based on the quality of the performance of the solar energy system of the home.

4.Local Market Trends and Buyer Preferences

The level of impact of solar panels on homes most times depends on the region of location, for example in areas that renewable energy is highly appreciated, areas such as Texas, Florida and California, Solar Panels are mostly seen as an added advantage, in this areas, demand for homes with solar system are on the high side and in most cases it has significant Influence in the home Appraisal value

5. Lease vs. Owned Systems

Another important consideration is whether if the solar system is outrightly owned or it’s leased.

If a homeowner is the owner of the solar system, it’s automatically seen as an asset that adds values to the property.

Read Also:Do Solar Panels Increase Home Value in Texas?

On the other hand, if it is leased, the appraisal may decide against including the full values of the solar panels simply because lease solar may not be transferable with the property if eventually sold.

How Solar Panels Impact Your Home’s Value

There are so many benefits that comes with installing and properly integrating solar panels in your home thereby increasing the values. below are some:

1.Lower Operating Costs: Consider the reduction that comes with the electricity bills, that’s a huge advantage, most buyers are willing to pay more just to get a home that comes with a lower ongoing cost.

2.Modern Upgrades:

No doubt solar panels are seen as an eco friendly alternative to more traditional means of generating Electricity. it’s also more modern and energy efficient.

3.Market Differentiation:

If you look at it from a competitive estate marketing point of view, Those with solar panels installed in their homes tends to sell faster with much higher price than those without, a lot of eco conscious buyers also wants to buy homes with solar system installations.

4.Long-Term Investment:

One critical advantage of solar panels is the fact that they’re built to last for some decades, if you are capable of providing proper maintenance on your solar system, you are sure of not just long term savings, but also huge degree of stability, all these are huge attractive features for lots of buyers out there who are looking for a smart investment.