Path-Q Solar

How should I factor an expected increase in home value into my solar ROI calculation?

Answer

Treat expected value as a separate, uncertain terminal benefit rather than guaranteed annual savings; include only a conservative, evidence-supported amount and account for selling costs and timing.

Key points

  • Do not count both bill savings and a speculative value premium for the same benefit.
  • Discount the benefit to its expected realization date.
  • Test the result with zero value added.

What it depends on

  • Expected holding period
  • Comparable market evidence
  • Sale costs and probability

Risks and trade-offs

  • The premium may not be recognized or may be offset by sale costs.
  • A later sale makes the benefit less certain.

Information you may need

  • Evidence for value effect
  • Expected sale timing
  • Transaction costs

Your next step

What to do next

Run ROI with no home-value benefit, a conservative estimate, and an optimistic estimate.

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SQ00069