Freddie Mac has updated its guidelines regarding the appraisal of homes with solar panels, effective from August 7, 2024. According to these new guidelines, the ownership status of solar panels plays a crucial role in determining whether they add value to a home.
If homeowners own their solar panels outright or finance them as part of the property through a secured loan, the panels can contribute positively to the home's appraised value. This means that owned solar panels are considered an asset that enhances the property's worth.
Conversely, if the solar panels are leased or under a power purchase agreement (PPA), where they are not owned by the homeowner but financed separately with the panels as collateral, they do not increase the appraised value. The reason is that such panels could be repossessed and are not deemed part of the property itself. Despite this, appraisers will still assess and comment on how having solar panels might affect the marketability of a home.
Understanding these nuances is essential for homeowners considering buying or selling properties with solar installations. Freddie Mac's guidelines aim to provide clarity on how energy-efficient features like solar panels impact property valuations.