Do solar panels add any value to a rental property?
Are you asking about as a long term rental or a short term rental.
Around my area, the solar panels don't add any value to the home itself. Solar panels still haven't become the norm in our area so the data set seems too small to tell if there is a noticeable value to renters. From a short term perspective, reducing your costs would have a value.
When looking into solar, the paybacks always seemed to be way too long to make sense. I haven't looked at them in a little while, so maybe things have changed for the better.
Long term rental. I'm currently looking at a duplex with solar panels. I would need to take over the loan used to purchase the panels. The current owner pays the electric so I guess he sees the benefits. I feel it may be more hassle then not in the long term.
Some might plead yes and that there are even calculations appraisers can use like out in Berkeley California, but here in Missouri if you talk to ANY appraiser, they will say no.
Best advice would be to just hear it straight from the horses mouth… call a few local appraisers and ask them. Don’t ask a realtor. I used to own a solar company and I carry my real estate license with KW, so I’ve got a little history on both sides of that equation.
I wouldn’t bank on any value for the solar system to your appraisal, Taking over the loan you really need to make sure you are getting the 25 year warranty from the installer as well. Inevitably your inverter will fail prematurely, depending on brand and quality.
It only takes one service call that you pay for out of pocket to negate the solar savings that month assuming those savings superceeded the solar payment.
Not a chance.
No. It probably doesn’t reduce the value but doesn’t add anything. Feel free to click on the magnifying glass in the upper right to see the last 500 times this has been discussed.
@Bill Rought it would if the property is commercial. Anything that changes the NOI for the better adds value. The question then would be to see if the panels add enough value to justify the cost.
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