There are multiple ways for a homeowner to obtain the electricity generating and
savings benefits offered by a photovoltaic (PV) system. These include purchasing a
PV system through various financing mechanisms, or by leasing the PV system from
a third party with multiple options that may include purchase, lease renewal or PV
system removal. The different ownership options available to homeowners presents a
challenge to appraisal and real estate professionals during a home sale or refinance in
terms of how to develop a value that is reflective of the PV system’s operational
characteristics, local market conditions, and lender and underwriter requirements.
This paper presents these many PV system ownership options with a discussion of
what considerations an appraiser must make when developing the contributory value
of a PV system to a residential property.