As sustainability becomes a priority for many Arizona homeowners, solar panels have become increasingly popular in cities like Gilbert. But one pressing question often arises during real estate transactions: Are solar panels included in the appraised value of homes in Gilbert?

The short answer is—yes, but it depends on several important factors. The way solar panels impact a home’s valuation during a real estate appraisal in Gilbert varies based on system ownership, market demand, energy savings, and more.

In this comprehensive guide, we’ll break down how solar panels are evaluated during the appraisal process, what factors affect their contribution to home value, and why working with knowledgeable local appraisers like Eagle Home Appraisal ensures an accurate valuation that reflects your home’s full energy efficiency potential.

Why Solar Panels Matter in Today’s Real Estate Market

As utility rates continue to rise and eco-conscious living becomes more widespread, solar power systems are no longer just a luxury—they’re a major selling point. In Gilbert, with its 300+ sunny days per year, solar panels can significantly reduce energy costs and attract energy-savvy buyers.

These factors make solar a valuable asset, but how appraisers quantify that value is nuanced and depends on a range of variables, which we’ll explore below.

How Real Estate Appraisers Evaluate Solar Panels in Gilbert

Appraisers follow specific guidelines to determine whether solar panels add value and how much. The Uniform Standards of Professional Appraisal Practice (USPAP), as well as directives from Fannie Mae and the Appraisal Institute, provide a framework—but local expertise is crucial.

Key Factors Appraisers Consider

1. Ownership vs. Lease

    

   • Owned Systems: If the homeowner owns the solar system outright (no financing or leases), it is typically considered real property and included in the appraised value.

      

   • Leased Systems: If the solar system is leased or under a power purchase agreement (PPA), it usually is not included in the home’s market value because the system is still owned by a third party.

      

2. Energy Savings Documentation

    

   • Appraisers evaluate how much the solar system reduces utility bills. Homeowners who provide documentation showing consistent monthly savings can see a positive impact on their appraisal.

      

   • Annual kilowatt-hour production, inverter type, and utility rate comparisons help appraisers quantify long-term savings.

      

3. System Age and Warranty

    

   • Newer systems with transferable warranties and efficient panels tend to increase value.

      

   • Older systems with limited remaining life may contribute less or require replacement soon.

      

4. Market Demand and Local Comparables

    

   • Appraisers look for comparable homes with solar that have recently sold in the Gilbert area.

      

   • In neighborhoods where solar is common and buyer demand is high, solar panels are more likely to add measurable value.

      

5. Installation Quality and Aesthetics

    

   • Professionally installed, roof-integrated, and well-maintained systems are more favorably viewed.

      

   • Poorly installed or visible, bulky setups may detract from curb appeal and reduce perceived value.

      

How Much Value Do Solar Panels Add in Gilbert?

The exact value added by solar panels can vary widely, but national studies and local market trends provide a general range:

• According to the National Renewable Energy Laboratory (NREL) and Berkeley Lab, solar panels can add $4,000 to $6,000 per kilowatt of capacity to a home’s value.

   

• In Gilbert, where the average system ranges from 5kW to 10kW, that could mean an increase of $20,000 to $60,000, depending on condition, ownership, and energy savings.

   

Eagle Home Appraisal takes these data points and local comparables into account to determine a realistic and supportable adjustment in their appraisal report.

Common Myths About Solar Appraisals

❌ Myth 1: “All Solar Systems Add Equal Value”

Not true. Owned systems with high efficiency and detailed documentation add the most value. Leased or outdated systems may have little to no impact—or even create friction in transactions.

❌ Myth 2: “Solar Panels Automatically Raise My Appraisal”

Only when appraisers have comparable solar homes to reference or can support energy savings with documentation. Otherwise, appraisers may apply conservative adjustments.

❌ Myth 3: “Appraisers Don’t Understand Solar”

Experienced local firms like Eagle Home Appraisal stay up-to-date with solar valuation methodologies and local buyer preferences to ensure accurate results.

Tips to Maximize Solar’s Impact on Your Appraisal

If you’re planning a home sale or refinance and want your solar system to positively influence your real estate appraisal, follow these tips:

1. Provide Ownership Proof

Bring documentation that shows the system is fully paid off, including receipts, invoices, or ownership certificates.

2. Share Utility Bills and Savings Data

Compile at least 12 months of utility bills showing reduced energy costs. If you have solar monitoring software (like Enphase or SolarEdge), include production reports.

3. Highlight Warranties and Upgrades

Include panel manufacturer details, inverter replacement dates, and transferable warranties to demonstrate system value and longevity.

4. Schedule Appraisal During Peak Sun Seasons

While appraisers adjust for seasonality, seeing the system in action during longer daylight months helps demonstrate functionality and aesthetic integration.

Why Choose Eagle Home Appraisal for Solar-Inclusive Valuations?

Eagle Home Appraisal is a trusted name in Gilbert’s residential valuation space, known for their expertise in accurately evaluating energy-efficient features, including solar systems.

What Sets Them Apart?

• Local Market Expertise: They understand how solar impacts value in Gilbert’s unique neighborhoods.

   

• Advanced Training: Their appraisers stay updated on green appraisal guidelines and energy valuation best practices.

   

• Thorough Documentation: Every appraisal includes a detailed breakdown of how solar affects the home’s overall value—giving clarity to lenders, buyers, and sellers alike.

   

Frequently Asked Questions (FAQs)

1. Does a leased solar system affect my home’s appraisal?
   Leased systems are generally not included in the appraised value, though they may be viewed favorably by buyers if terms are reasonable.
2. Can I refinance with solar panels on my home?
   Yes. Owned systems can boost your home’s value during refinance. Leased systems may require lender review of the lease agreement.
3. How do I prove energy savings to my appraiser?
   Provide utility bills, solar monitoring reports, or documents showing average kilowatt-hour savings before and after installation.
4. Are solar panels treated differently for FHA or VA loans?
   Sometimes. These loans have specific criteria for solar valuation. An experienced appraiser will follow the correct guidelines for the loan type.
5. Will adding solar always increase my appraisal?
   Not always. The impact depends on system ownership, condition, documentation, and the local market’s appetite for solar.

In Gilbert, where energy costs are high and sunshine is abundant, solar panels can be a major asset. However, whether they increase your home’s appraised value depends on several key factors. By understanding how solar is evaluated during a real estate appraisal and by working with experienced professionals like Eagle Home Appraisal, you can ensure your solar investment is accurately reflected in your home’s market value.

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