Selling Into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes

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Homes with solar photovoltaic (PV) systems have multiplied in the United States recently, reaching more than half a million in 2014, in part due to plummeting PV costs and innovative financing options. As PV systems become an increasingly common feature of U.S. homes, the ability to assess the value of these homes appropriately will become increasingly important. At the same time, capturing the value of PV to homes will be important for facilitating a robust residential PV market. Appraisers and real estate agents have made strides toward valuing PV homes, and several limited studies have suggested the presence of PV home premiums; however, gaps remain in understanding these premiums for housing markets nationwide. To fill these gaps, researchers from Lawrence Berkeley National Laboratory (LBNL) and their collaborators from other institutions conducted the most comprehensive PV home premium analysis to date. The study more than doubles the number of PV home sales previously analyzed, examines transactions in eight states, and spans the years 2002–2013. The results impart confidence that PV consistently adds value across a variety of states, housing and PV markets, and home types.

Date January 2015                                                                                                                                                                                                                               
Topic Solar Basics & Educating Consumers; Financing, Incentives and Market Analysis
Subprogram Soft Costs
Author Lawrence Berkeley National Laboratory