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![LBL Study: PV Effects on Home Sales Prices
“An Analysis of the Effects of Residential Photovoltaic Energy
Systems on Home Sales Prices in California”
By Ben Hoen, Ryan Wiser, Peter Cappers & Mark Thayer
Lawrence Berkeley National Laboratory, April 2011
Timeframe: 2000 to 2009
Sample: 72,000 Home Sales in CA
Solar Homes: 2,000
Findings: [averages]
Cost Sale Price
New Home: $4.00/W $2.30-$2.60/W
Existing Home: $5.00/W $6.00/W
Avg. System Size: 3.1 kW
Sale Price Increase: 3,100W system = $17,000](https://image.slidesharecdn.com/beyondzero1-13427372352284-phpapp01-120719173958-phpapp01/85/Beyond-Zero-Solar-Value-15-320.jpg)
Beyond Zero: Solar Value
- 1. Jeff Bricmont Sr. LoanConsultant – GoGreen Lending™ CGBP – Build it Green USGBC EEM Specialist 203k Certification VGT Board Valley Green Building Education Conference CSUN, June 7, 2012 1
- 2. For Sale Hidden Treasure High Performance Home Traditional Home 2
- 3. Cost Savings Multiplier Construction lending/investment is “special” Appraiser Journal, 1998* Net Annual Cost Savings Multiplier $20/$1 of utility savings/first year Seller Buyer agent Appraisal Reviewer Appraisal Seller Management Firm Chief Credit Agent Officer “Where’s the proof?” Government Examiner Broker Banker Appraiser Loan Underwriter *“Evidence of Rational Market Valuations for Home Energy Efficiency” by Rick Nevin, Gregory Watson, Appraisal Journal, Oct. 1998 3
- 4. Cost vs. ValueReport 2011-2012 Recouped Recouped Pacific Region Cost Resale Value Region National Minor Kitchen Remodel $20,947 $19,165 91.5% 72.1% Bath Remodel $19,204 $14,431 75.1% 62.2% Window Replmt -vinyl $13,504 $10,995 81.4% 68.0% Home Office Remodel $31,239 $15,777 50.5% 42.9% Garage Door $1,732 $1,531 88.4% 71.9% © Hanley Wood LLC Remodeling 2011-2012 Cost vs. Value Report www.costvsvalue.com
- 5. Market Data Location New Home Existing Period Certification Portland MLS: price 8% increase 30% increase 5/10-4/11 ES, LEED, E Advtge Garbett Homes UT ID WY MO $14k increase current HERS - 60% savings Atlanta 2009-2010 Sale Price/List % 3.4% higher ES, LEED, E Craft Days on Market 21% faster (97vs 123 days) LBL - Solar Sales CA Solar Homes $2.30-2.60/W $5.50/W 2000-2009 KB Homes - CA 30% faster
- 6. 2 Unit CondoPurchase
- 7. Appraisal Process Lender Defines Scope of Work: market comps formula conform to secondary market Appraisal Management Company Appraiser: fixed fee and delivery schedule High Performance Home Considerations Income approach Debt reduction Sales Premium
- 8. Residential Green &Energy Efficient Addendum APPRAISAL INSTITUTE - 2011 Template for High Performance Home Energy Features * Green Features Location /Site * Solar PV * Incentives New or Existing Properties Common Vocabulary for Stakeholders
- 9. Residential Green &Energy Efficient Addendum 9
- 10. GA Green Features Certification s http://www.appraisalinstitute.org/education/green_energy_addendum.aspx 10
- 11.
- 12. PV Value ™ GeoffT Klise -Sandia National Laboratories Jamie Johnson – Solar Power Electric ™ PV Value™ 1.0 launched Jan 2012 Commercial Launch Sept 2012 **************** Excel tool to determine value of new & existing PV Income Capitalization Approach Residential & Commercial Properties GA Solar Data Inputs Directly into PV Value ™ v. 1.0 NREL PV Watt - national inputs energy.sandia.gov/?page_id=8047
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- 14. PV Value ™ 14
- 15. LBL Study: PVEffects on Home Sales Prices “An Analysis of the Effects of Residential Photovoltaic Energy Systems on Home Sales Prices in California” By Ben Hoen, Ryan Wiser, Peter Cappers & Mark Thayer Lawrence Berkeley National Laboratory, April 2011 Timeframe: 2000 to 2009 Sample: 72,000 Home Sales in CA Solar Homes: 2,000 Findings: [averages] Cost Sale Price New Home: $4.00/W $2.30-$2.60/W Existing Home: $5.00/W $6.00/W Avg. System Size: 3.1 kW Sale Price Increase: 3,100W system = $17,000
- 16. Capitalization Formula Study supportsprior findings: Ratio of: Sales Price Premium Est. Annual Electricity Savings Equals: 14/1 to 22.1/1 average range Compare: Appraiser Journal: 1998 Multiplier Value increases $20/$1 of utility savings/first year
- 17. Case Study: WestHills
- 18. “Well informed orwell advised” Market Value: both buyers and sellers must be ‘well informed or well advised” regarding the ‘market value’ of a property. 12 Code of Fed Regs, Pt 34, Subpart C - Appraisals Uniform Standards of Professional Appraisal Practice Appraiser must be competent or may obtain competency to calculate a reasonable value or the appraiser can not accept the assignment. 18
- 19. FHA: SOLAR ENERGYVALUE If market data is not available to indicate any premium that might paid for a property with solar energy, the amount of increase shall be the lesser of the: – Actual cost of the solar system installed in the subject house; or no more than – 20 percent of the market value of the property without solar energy 19
- 20. Valuation Detail Appraiser made: •General calculation • Survey 4 mile radius – no comps • Consulted expert individual (not sales person) • Allowed 10% of PV cost $40,000 • Home Value increase: $4,000 ************* LBL Formula: 5,670W X $6/W = $34,020 PV Value ™ : $12,361 - $14,599 value range
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- 22. High Performance ValuePacket 1. Expand scope of work GREEA: Identify HP Items 2. Request Competent Appraiser Consider Income Approach 3. Document Value/Benefit Specs/Costs Benchmarks – Guidelines Calculation: PV Value ™, HERS, LBNL Certification: Energy Star, BPI, Others
- 23. Sustainable Finance Getting Beyond Zero Jeff Bricmont GoGreen Lending™ Lighthouse Capital Group 626-676-9704 CA DRE # 01388821 jeff@gogreenlending.com NLMS 246728 23
- 24. LINKS Residential Addendum http://www.appraisalinstitute.org/education/green_ener gy_addendum.aspx PV Value(TM) http://energy.sandia.gov/?page_id=8047 LBS Solar Study http://eetd.lbl.gov/ea/emp/reports/lbnl- 4476e.pdf Hanley Wood www.costvsvalue.com jeff@gogreenlending.com