U.S. Solar Market Value Report: Further Evidence that Solar Adds Value to Real Estate
Solar photovoltaic systems provide cost savings to the property owner in terms of avoided electricity costs that accrue over the system lifetime. From an investment standpoint, the equipment and the value of the energy generated can potentially increase the underlying property value. This first-of-a-kind study presents real market data collected from real estate appraisers using the PV Value® tool to develop a market value for solar as part of a property sale or refinance. Aggregated results at the state level are discussed for California, Arizona and Massachusetts, using 2015 and 2016 data where appraisers used the income capitalization approach to develop a market value for solar. Additional data collection using future transaction data could reveal market-specific trends and insights at the zip code, city and metropolitan statistical area (MSA) levels.