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Re: [evworld] OT: Effect of Solar PV installation on Home Value?

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  • Ted Shelton
    I would base my decision, in part, on the sites subceptibility to theft, vandelism, and danger to my neighbors (as a reflection into a home window or cars on a
    Message 1 of 5 , Apr 10, 2004
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      I would base my decision, in part, on the sites
      subceptibility to theft, vandelism, and danger to my
      neighbors (as a reflection into a home window or cars on
      a road or invitation to childrens curiositys and my
      libilitys). What does your insurance require? As far as
      payback from any earth saving device, just doing the
      right thing has to be part of any equation.
      Ted
      Atchafalaya Basin
      Bute La Rose, La.
    • murdoch
      ... Ted: Thanks for the interesting response. I did already make an inquiry as to reflection off the road, and it appears that the angle of the panels is not
      Message 2 of 5 , Apr 11, 2004
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        On Sat, 10 Apr 2004 22:17:53 -0500, you wrote:

        >
        >
        > I would base my decision, in part, on the sites
        > subceptibility to theft, vandelism, and danger to my
        > neighbors (as a reflection into a home window or cars on
        > a road or invitation to childrens curiositys and my
        > libilitys). What does your insurance require? As far as
        > payback from any earth saving device, just doing the
        > right thing has to be part of any equation.
        >Ted
        >Atchafalaya Basin
        >Bute La Rose, La.

        Ted:

        Thanks for the interesting response. I did already make an inquiry as
        to reflection off the road, and it appears that the angle of the
        panels is not likely to result in a problem of reflecting into folks'
        eyes, but I agree with you 100% that it's something that I'm going to
        keep a watch for.

        I think that I'm personally doing this partly as the right thing to do
        (I've already paid for it). It's sort of to "stay involved"
        first-hand, and when I do (soon I hope) get my own small BEV or PIHEV,
        rather than just testing those that I'm able to try from the
        manufacturers we talk to, it will then be partly solar-powered. In
        any event, of all the many progressive technologies covered in
        evworld.com and other publications, I think solar PV has been a
        favorite of mine for many decades.

        But the more I think about this, the more I also want to pursue the
        home-valuation hypothesis and discussion, at least a bit more.

        It is perhaps important to me financially in the sense that it could
        have a huge effect on the value of my home (and, as you point out, on
        my insurance if I don't watch out) if my hypothesis is somewhat
        correct. If I choose wrong, in this theory, I could cost myself
        money. If I choose right, I could be "sitting pretty" with a really
        cool looking well-placed system that, along with other factors, make
        my home that much more desireable (not to mention the shift we may see
        from others if-when there is a power crisis).

        I find it odd that we have not seen some discussion of home valuation
        improvement, relating to installation of
        home-power-generation-capability. It seems to me that virtually any
        other home improvement we can name (renovation of a garage,
        installation of a new room, landscaping) it would be automatically
        assumed that the homeowner need not overly much worry about "payback"
        because it is simply assumed that a well-designed improvement will
        often but not always result in enough of a home valuation increase to
        warrant the money spent.

        But with solar, for years and years and years, we've heard detractors
        naysay our efforts to advocate installation on the grounds that it
        "can't be financially justified according to present power rates".
        Maybe that's not true. Maybe the increased home value could change
        the financial equations, and those seemingly petty jibes can be
        countered more effectively than we have been?

        MM

        PS: Vandalism is a concern I'd only thought about cursorily, but I'll
        think about it. This area seems better-than-average as to law
        enforcement's efforts to make homeowners at ease about that sort of
        thing.
      • Dave Goldstein
        On Sun, 11 Apr 2004 13:09:51 -0700 murdoch ... Quoting from a company called Sierra Solar Systems in a Web article entitled,
        Message 3 of 5 , Apr 11, 2004
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          On Sun, 11 Apr 2004 13:09:51 -0700 murdoch <murdoch@...>
          writes:
          > . . . .
          > But the more I think about this, the more I also want to pursue the
          > home-valuation hypothesis and discussion, at least a bit more.
          >
          > It is perhaps important to me financially in the sense that it could
          > have a huge effect on the value of my home (and, as you point out,
          > on my insurance if I don't watch out) if my hypothesis is somewhat
          > correct. If I choose wrong, in this theory, I could cost myself
          > money. If I choose right, I could be "sitting pretty" with a really
          > cool looking well-placed system that, along with other factors, make
          > my home that much more desireable (not to mention the shift we may
          > see from others if-when there is a power crisis) . . .


          Quoting from a company called Sierra Solar Systems
          in a Web article entitled, " Making Solar Pay -- and the
          Math to Prove it" :

          http://www.sierrasolar.com/articles/net_metering/making_solar_pay.html

          "Solar electric systems increase a property's value by
          decreasing the utility operating costs. According to the
          Appraisal Journal www.natresnet.org/herseems/appraisal.htm,
          a home's value increases by $20 for every $1 reduction in
          annual operating costs from energy efficiency because
          historic mortgage costs have an after-tax effective interest
          rate of about 5%. If a dollar of reduced operating costs is
          put towards debt service at 5%, it can support an additional
          $20 of debt. To the borrower, total monthly cost of ownership
          is identical."

          Also see this testimonial regarding the construction of a *new*
          Solar home in the Midwest and its subsequent increase in
          appraised value compared to initial building cost:

          http://www.greenenergyohio.org/default.cfm?exec=Page.View&pageID=688

          Note, however, that the article does not mention the initial cost of
          the
          buildable lot or the normal rate of return (typically about 15%, I
          believe)
          that a homeowner might reasonably expect for taking on the considerable
          responsibility for building their own home.

          Regards,

          Dave Goldstein
          (former real estate assessor)
          President, EVA/DC and
          Program Development Associates
          Gaithersburg, MD
        • murdoch
          Thanks to Dave, and also to others, I think I have a better understanding of this. I couldn t quite understand why I was willing to pay more for even a small
          Message 4 of 5 , Apr 12, 2004
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            Thanks to Dave, and also to others, I think I have a better
            understanding of this. I couldn't quite understand why I was willing
            to pay more for even a small amount of extra conservation.... like
            paying extra for a refrigerator that gets even better conservation
            than a good Energy Star Fridge (a decision I still think was
            questionable).

            But if this $20 home valuation increase per $1 annual energy bill
            decrease is true, then it might also bear on decreases in annual bills
            that result from Conservation measures, I'm hoping, and not just Solar
            Installations.

            I can't afford enough to get my bill to zero (particularly in the hot
            Arizona summers, which I haven't had a chance to do a baseline test on
            yet without the solar), but it will go down a lot. I feel comfortable
            that the calculation means I'll, at-the-least, see the entire cost
            reflected in a nice solid home valuation increase.

            I didn't see much or anything about the importance of aesthetics in
            these articles, so I'll sort of think about that a bit more, as far as
            what will please me and how much I'm willing to spend for it.

            Another thing I haven't mentioned is the choice of whether or not to
            do a tracker. It was estimated for me that this could increase kWh
            production by up to 25% for an extra amount of money ($1000?). I
            don't know. I'm inclined against it because of the possibility that
            it would just break in the future and I'd end up tilted at the sun. A
            lot of people just seem to go for stationary, for whatever reason.

            Other challenges going forward: figure out how much my hot water
            heater (already hooked up to a solar heater) is using, and how much my
            water softener is using (I am constantly hearing the pump, so if it's
            making noise, it's using energy).

            MM


            On Mon, 12 Apr 2004 01:43:43 -0400, you wrote:

            >On Sun, 11 Apr 2004 13:09:51 -0700 murdoch <murdoch@...>
            >writes:
            >> . . . .
            >> But the more I think about this, the more I also want to pursue the
            >> home-valuation hypothesis and discussion, at least a bit more.
            >>
            >> It is perhaps important to me financially in the sense that it could
            >> have a huge effect on the value of my home (and, as you point out,
            >> on my insurance if I don't watch out) if my hypothesis is somewhat
            >> correct. If I choose wrong, in this theory, I could cost myself
            >> money. If I choose right, I could be "sitting pretty" with a really
            >> cool looking well-placed system that, along with other factors, make
            >> my home that much more desireable (not to mention the shift we may
            >> see from others if-when there is a power crisis) . . .
            >
            >
            > Quoting from a company called Sierra Solar Systems
            >in a Web article entitled, " Making Solar Pay -- and the
            >Math to Prove it" :
            >
            >http://www.sierrasolar.com/articles/net_metering/making_solar_pay.html
            >
            > "Solar electric systems increase a property's value by
            >decreasing the utility operating costs. According to the
            >Appraisal Journal www.natresnet.org/herseems/appraisal.htm,
            >a home's value increases by $20 for every $1 reduction in
            >annual operating costs from energy efficiency because
            >historic mortgage costs have an after-tax effective interest
            >rate of about 5%. If a dollar of reduced operating costs is
            >put towards debt service at 5%, it can support an additional
            >$20 of debt. To the borrower, total monthly cost of ownership
            >is identical."
            >
            > Also see this testimonial regarding the construction of a *new*
            >Solar home in the Midwest and its subsequent increase in
            >appraised value compared to initial building cost:
            >
            >http://www.greenenergyohio.org/default.cfm?exec=Page.View&pageID=688
            >
            > Note, however, that the article does not mention the initial cost of
            >the
            >buildable lot or the normal rate of return (typically about 15%, I
            >believe)
            >that a homeowner might reasonably expect for taking on the considerable
            >responsibility for building their own home.
            >
            > Regards,
            >
            > Dave Goldstein
            > (former real estate assessor)
            > President, EVA/DC and
            > Program Development Associates
            > Gaithersburg, MD
            >
            >
            >
            >Yahoo! Groups Links
            >
            >
            >
            >
            >
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