Funding Program: SuNLaMP
SunShot Subprogram: Soft Costs
Location: Lawrence Berkeley National Laboratory, Berkeley, CA
SunShot Award Amount: $1,071,229

This project analyzes the extent to which photovoltaics (PV) can add value to real estate properties. Past analyses have shown that PV adds value to host-owned residential properties, but there is a lack of information for residential properties with third-party owned (TPO) systems and commercial properties. This project will analyze the impact of these systems on home values and other factors, which will allow for increased growth of the PV market by providing real estate professionals and potential PV adopters with accurate valuations.

Approach

This project team will examine the direction and magnitude of PV impacts on residential property values for a large number of TPO systems and create a survey of realtors, buyers, and sellers involved in TPO PV home transactions to explore how these properties are marketed and any unique difficulties and benefits associated with the transaction. The team will also investigate the challenges of adding PV system characteristics into the Multiple Listing Service (MLS), which enables real estate brokers to establish contractual offers, facilitates cooperation with other brokers, gathers and disseminates information to assist appraisals, and enables dissemination of listing information. Guidance on how to incorporate PV system characteristics into MLS will also be developed. Surveys will be created for commercial real estate appraisers as well, examining methods of applying the income approach to valuing commercial PV properties.

Innovation

This project has the potential to stimulate demand for solar and reduce the risk and transaction costs by  informing realtors, installer communities, and potential buyers and sellers of with the impact of TPO PV on home sales. By providing a roadmap for how to expand visibility of PV in the real estate industry’s top information hub, this project will transform the residential solar market by increasing the opportunities to market PV at the time of home sale. In addition to the residential sector, this project will examine commercial PV deployment, allowing for an assessment of where development has and could occur, as well as the value PV can provide to commercial properties.