Grid-tied solar

[dave1949]

I don't know, but I almost do Dave. My county is on the lookout for any improvement or change whatsoever. My heat pump that was taxed for many years goes belly up, they want to know of the replacement so they can tax it at full value. Generally, anything that gets inspected also gets taxes, and the inspection can be thought of as a way to get the change on the tax roles as much as for any other reason. Same for carpet, or most anything, but they feel too silly to call in the carpet inspectors, so we are on our honor. Unless a county chooses to favor certain real property (thinking it is a good thing and wishing to encourage more) they are all mostly pretty hungry for tax revenue.

I'm sure it is revenue driven, I just wonder how consistent they are in applying it.

With cutbacks in state spending, lots of tax burdens are going to shift to local towns and counties, so I suppose they will be looking harder for something to tax. We are already over-reliant on property taxes around here.

 

[TheGoose]

I believe that in Tx they will not charge you tax based on the value of your solar system.

 

[BillG_in_TX]

I believe that in Tx they will not charge you tax based on the value of your solar system.

You are correct that in Texas these systems are exempt from property tax, but the legislature recently passed a law which says that homeowners must apply for this exemption every year! If that isn't the stupidest thing I've ever heard, I don't know what is. It's not like it's going to change every year. See: http://www.window.state.tx.us/taxinfo/taxforms/50-123.pdf

My local tax appraisal authority (Dallas County) says they are not putting a value on the systems and won't be enforcing this statute for at least the next five years, in hopes that the law will be changed or rescinded by then.

This subject does bring up another one: If adding a PV array to your house does increase its value, how does that affect the payback calculations? I had an appraisal done on my home for refinancing purposes, and the appraiser assigned a higher value to the array than my original net cost. It could be argued that my payback was immediate (not that I want to start an argument) and my monthly savings are gravy:thumbsup:.

 

[madmax12]

BillG...

Also not starting trouble, this is just a question. Is it possible that you have recovered its value in the appraisal today...but an appraisal in twenty years will be less complimentary ? The technology at that time may be quite different.

 

[BillG_in_TX]

BillG...

Also not starting trouble, this is just a question. Is it possible that you have recovered its value in the appraisal today...but an appraisal in twenty years will be less complimentary ? The technology at that time may be quite different.

Yes, the technology will be different, but its value as a productive asset should be greater, assuming that electricity prices rise faster than the array's efficiency degrades. The appraiser didn't add value because it looks nice, or because it added square feet to the dwelling; he assigned value to it based on the reduction of operating costs that it provides.

 

[dave1949]

BillG...

Also not starting trouble, this is just a question. Is it possible that you have recovered its value in the appraisal today...but an appraisal in twenty years will be less complimentary ? The technology at that time may be quite different.

It is a depreciating piece of equipment for sure. Its value over the years declines, like an vehicle. It seems odd to me to blend an asset of that type with property that changes value with the market.

I have to learn more about the tax laws. I think Maine towns can legally assess personal property (furniture, tools, appliances, etc.) but I am not aware of any that do. That would be the end of those selectmen Is a solar pv system an appliance, part of a home's mechanical system, or what?

 

[dave1949]

Yes, the technology will be different, but its value as a productive asset should be greater, assuming that electricity prices rise faster than the array's efficiency degrades. The appraiser didn't add value because it looks nice, or because it added square feet to the dwelling; he assigned value to it based on the reduction of operating costs that it provides.

??? Does the appraiser really give hoot really what it produces? I don't know about that idea. It's possible.

 

[BillG_in_TX]

??? Does the appraiser really give hoot really what it produces? I don't know about that idea. It's possible.

Well, we all know that an appraisal isn't money in your pocket, but I was pleased to find out that he did assign a value to it, and I don't know any other basis he could have been using other than utility cost savings. Has anyone else with a PV system had experience with a property appraisal post-installation?

However, if I was buying a house with a PV system already installed, I would be very reluctant to pay extra for it unless 1) I really understood how it worked, 2) I calculated how much money it could save me, and 3) I had it checked out thoroughly by an informed electrician.

If I was an uninformed buyer I might be more likely to insist that it be removed before closing ! I'll have to be prepared for that when it comes time to sell this house.

 

[yelbike]

Well, we all know that an appraisal isn't money in your pocket, but I was pleased to find out that he did assign a value to it, and I don't know any other basis he could have been using other than utility cost savings. Has anyone else with a PV system had experience with a property appraisal post-installation?

However, if I was buying a house with a PV system already installed, I would be very reluctant to pay extra for it unless 1) I really understood how it worked, 2) I calculated how much money it could save me, and 3) I had it checked out thoroughly by an informed electrician.

If I was an uninformed buyer I might be more likely to insist that it be removed before closing ! I'll have to be prepared for that when it comes time to sell this house.

Thats a pretty good assumption as most buyers are very reluctant to pay for something they dont know. Thats why an investment like pv or geo thermal heating should be done in a Home you intend on having for a long time.

 

[madmax12]

Those are all good points. While it may seem futile, u could start a spreadsheet tracking past bills without solar and then tracking the difference from solar panels on... If u keep all your bills in a "for when I sell the house" file, it may not take very much convincing.

I don't know if ill ever do it...but I think your move to solar is intelligent. If it ever somehow turned out to have been a mistake... I think it would still be an intelligent one. Did that make sense?