So you have Solar Panels or some other renewable energy source that is generating an annual review for you, possible via Feed-in-Tariffs (FiTs) and that’s great news as you may be generating an annual revenue from these that can pay for a holiday or other nicety each year or every few years.
However have you ever truly considered the actual value of the panels, i.e. the revenue they generate? Like any other investment income the revenue from having solar or other renewable energy source income is something that has a capital value. There’s a lot of people who think that you can merely take your net revenue and multiply that by say the number of years left and hey presto that’s the capital value. That’s NOT the case!
Like any investment income there are factors that can affect the revenue stream and as such the investment value of that income, in the case of solar panels it’s the timing of the FiT, remaining lifespan, maintenance costs, etc… Why does this matter?
When selling your property you are likely going to try to convince the buyer that they are gaining additional investment income as a result of the presence of the system and as such you expect them to pay you something for that, hey you installed the system and paid for it after all.
However what is a reasonable figure to add to the property value? Is it the cost of the installation? I’d say not as that changes over time and the cost of a new system may actually be lower than your original cost. What about simply asking for say a % of annual revenue and then multiplying that by a number of years? You could, but does that give the buyer confidence they are not paying too much or indeed you that you have achieved a ‘fair return’ on your investment?
Castle Surveyors Limited have Registered Valuer’s on hand to assist and can provide you with a certificate of value to show to potential buyers or indeed anyone else who may wish to see it. This can help your sale by showing you have obtained an ‘independent valuation’ which can help in your negotiations with potential property buyers.
As a property buyer, you can also obtain a valuation certificate for the property your buying so you can gauge the purchase price and ensure you are happy.
Castle Surveyors Limited can assist you by providing a valuation certificate and there is no need for the Valuer to even visit the property. We simply need some information to verify the revenue, installation date, start date for the FiT’s and the term, along with average maintenance costs, if any, over the last 3 or 5 years. We’ll use that information to provide you with a ‘capitalised’ value of the revenue based upon our market knowledge.
Solar Panel Valuation
Updated on 2016-09-30T13:47:16+00:00, by .