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An Analysis of Solar Home Paired Sales across Six States

Publication Type

Journal Article

Date Published

04/2016

Authors

Adomatis, Sandra, Ben Hoen

Abstract

Solar photovoltaic (PV) installations on some US homes still receive no value during an appraisal because comparable home sales are lacking. This first-of-its-kind study uses appraisal methods to evaluate sale price premiums for owned PV systems on single-unit detached houses across six states that were also evaluated in a large statistical study. The results provide strong, appraisal-based evidence of PV premiums in all the states studied, and the results support use of cost- and income-based PV premium estimates when paired sales analysis is impossible. The appraised premiums agree with statistical modeling results, which bolsters the suitability of both approaches for estimating PV home premiums.

Journal

The Appraisal Journal

Volume

Year of Publication

2016

Issue

ISSN

0003-7087

Notes

This paper received the 2016 Armstrong/Kahn Award for the most outstanding original article published in The Appraisal Journal during the previous year.

This paper was based on work published in a larger LBNL report found here.