NewEnergyNews: TODAY’S STUDY: ROOFTOP SOLAR ADDS REAL ESTATE VALUE

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

While the OFFICE of President remains in highest regard at NewEnergyNews, this administration's position on climate change makes it impossible to regard THIS president with respect. Below is the NewEnergyNews theme song until 2020.

The challenge now: To make every day Earth Day.

YESTERDAY

  • TODAY’S STUDY: Rewarding Utilities For Giving Customers What Customers Want
  • QUICK NEWS, February 19: The Campaign To Get Conservatives To Fight Climate Change; A Perfect Match Of Distribute Energy And The Grid; U.S. Navy Moves On Wave Energy
  • THE DAY BEFORE

  • Weekend Video: Colbert Nails EPA Head Pruitt
  • Weekend Video: Ocean Life And Offshore Wind, Better Together
  • Weekend Video: Australia’s 50,000 Home Virtual Power Plant
  • THE DAY BEFORE THE DAY BEFORE

  • FRIDAY WORLD HEADLINE-Get Ready ‘Cause Here It Comes
  • FRIDAY WORLD HEADLINE-World Power Grids Are Ready For New Energy
  • FRIDAY WORLD HEADLINE-World Wind Numbers Reach New Highs
  • FRIDAY WORLD HEADLINE-Global Data Giants Drive New Energy Growth
  • THE DAY BEFORE THAT

    THINGS-TO-THINK-ABOUT THURSDAY, February 15:

  • TTTA Thursday-Conception In A Time Of Climate Change
  • TTTA Thursday-Introducing The EV Policy Fights
  • TTTA Thursday-The Oklahoma Wind War
  • TTTA Thursday-New Things To Do With Solar
  • THE LAST DAY UP HERE

  • ORIGINAL REPORTING: Stop, collaborate and listen: California works the details of bringing on distributed energy
  • ORIGINAL REPORTING: Hawaii Regulators Accept The Utility’s New Energy Plan To Move Ahead
  • --------------------------

    --------------------------

    Founding Editor Herman K. Trabish

    --------------------------

    --------------------------

    Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

    -------------------

    -------------------

      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

    -------------------

    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • TODAY AT NewEnergyNews, February 20:

  • TODAY’S STUDY: Using Economics To Grow Energy Efficiency Habits
  • QUICK NEWS, February 20: Cities’ Climate Fight Sets Goals; Solar On Every Roof; Wave Power For Ocean Water Desalination

    Wednesday, February 04, 2015

    TODAY’S STUDY: ROOFTOP SOLAR ADDS REAL ESTATE VALUE

    Price Premium Analysis of a Multi-State Dataset of Solar Homes; Host-owned rooftop solar adds significant value to U.S. homes across 8 states

    Ben Hoen & Ryan Wiser, et. al., January 2015 (Lawrence Berkeley National Laboratory)

    Overview

    Homes with solar photovoltaic (PV) systems have proliferated in the United States recently, reaching more than half a million in 2014, in part due to plummeting PV costs and innovative financing options. The U.S. Department of Energy estimates that achieving its SunShot PV price-reduction targets could result in 108 gigawatts of residential rooftop PV installed by 2050—equivalent to 30 million U.S. PV homes. As PV systems become an increasingly common feature of U.S. homes, the ability to value 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, real estate agents, and other property valuers have made strides toward valuing PV homes, and several limited studies have suggested the presence of PV home premiums, but gaps remain in understanding these premiums for housing markets nationwide. To help 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.

    Data and Methods

    The study used data on PV homes from LBNL’s Tracking the Sun report series with corresponding real estate information and information on similar non-PV homes. These data span the years 2002–2013 and eight states: California, Connecticut, Florida, Massachusetts, Maryland, North Carolina, New York, and Pennsylvania. The PV and non-PV homes were matched, resulting in a dataset of 18,871 non-PV homes (including 6,036 newly built homes) and 3,951 PV homes (including 1,444 newly built homes). All PV systems in this dataset were homeowner owned rather than leased. The sample included homes no more expensive than $900,000. These data were analyzed using hedonic (regression) pricing models to account for various home/site, neighborhood, and market characteristics. A number of models were estimated and compared, ensuring the results were robust to data and model specification. Contributory-value estimates also were generated for comparison based on net cost (PV cost after federal, state, and utility incentives), gross cost (PV cost before incentives), and income (value of energy savings from PV systems).

    Results and Conclusions

    • Home buyers consistently have been willing to pay more for a property with PV across a variety of states, housing and PV markets, and home types.

    • Premiums for PV homes are $1.10/watt larger in California than outside of California, but this difference is not statistically significant, and it seems to reflect the net cost of PV systems in each area (Figure 1). Moreover, the findings should provide greater confidence that PV adds substantial value to non-California homes.

    • Net cost estimates—which account for federal, state, and utility incentives—seem to be the best proxy for market premiums. Income estimates using the PV Value® algorithm are consistently lower than market premiums, possibly due in part to the sensitivity of this method to electricity-rate assumptions.

    • PV premiums remained fairly consistent even as PV gross costs decreased dramatically over the study period, suggesting that net cost, rather than gross cost, is the dominant market signal.

    • In contrast to previous studies, this study found only a small and non-statistically significant difference between PV premiums for new and existing homes, likely because this study includes many more sales and recent sales while excluding very-high-priced homes.

    • A “green cachet” might exist for PV homes; that is, buyers might be willing to pay a certain amount for having any size of PV system on their homes and then some increment more depending on the size of the system.

    • The market appears to depreciate PV systems in their first 10 years at a rate exceeding the rate of PV efficiency losses. The study data do not allow analysis of depreciation into the second decade of PV systems’ operation—this is an area for future research.

    • This study focuses only on homes with host-owned PV systems, not those with leased PV systems. Future analysis should focus on leased systems, as they are a growing portion of the PV home market.

    0 Comments:

    Post a Comment

    << Home