In sunny Southern California, solar panels are everywhere. But do they add value to your appraisal? The answer depends entirely on one word: Ownership.
Leased / PPA Systems = $0 Value
If you lease your panels or have a Power Purchase Agreement (PPA), Fannie Mae and Freddie Mac guidelines typically state that we give zero value to the system. It is considered personal property (a liability/debt obligation), not real estate.
Owned Systems = Positive Value
If you own the system outright (or financed it and will pay it off at closing), it does add value. How much? It depends on the energy savings, age of the system, and market data.
Recommendation
If you are planning to sell soon, buy the system. Trying to transfer a lease to a buyer effectively adds a monthly debt to them, which can actually scare buyers away.
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