How to Value a Rooftop Solar System When Buying a Home in Nevada

Rooftop solar panels are increasingly common in Nevada’s residential housing market. With abundant sunshine and net metering incentives from NV Energy, solar can significantly reduce electricity bills. But when buying a house with rooftop solar, how do you determine what that system is really worth?

This article outlines the main methods to evaluate the financial value of a solar system and key considerations for buyers in Nevada.

1. Determine Ownership Type

Before assigning value, ask:

• Is the solar system owned outright?

• Or is it leased or under a Power Purchase Agreement (PPA)?

✅ Owned System

An owned system is considered a property asset—like a remodeled kitchen. If paid off or financed with transferrable terms, it typically increases home value.

⚠️ Leased or PPA System

Leased or PPA systems may lower utility bills, but the buyer inherits a contract without ownership of the panels. This usually does not increase the home’s market value and may complicate the sale.

2. Method 1: Replacement Cost (Depreciated Value)

Estimate what it would cost to install a similar system today and subtract depreciation based on system age.

Example:

• A 6-kilowatt (kW) system

• Installed cost in Nevada today: ~$3.00/watt → 6,000 watts × $3 = $18,000

• System age: 8 years of a 25-year lifespan → Depreciated value: ~$10,560

3. Method 2: Present Value of Energy Savings

This method considers how much money the system will save over its remaining lifespan, discounted to today’s value.

Example:

• Monthly electricity savings: $150 → $1,800/year

• Remaining life: 17 years

• Discount rate: 5%

• Total present value of savings ≈ $19,600

[Editor’s note: a dedicated article on this method will be published soon. Please subscribe the blog to be notified.]

4. Method 3: Real Estate Rule of Thumb

Based on research from Lawrence Berkeley National Lab, homes with owned solar often sell for $3–$4/watt more.

Example:

• 6 kW × 1,000 = 6,000 watts

• 6,000 × $3.50 = $21,000

5. Other Key Factors to Consider

• Warranties: Solar panels typically come with a 25-year performance warranty and a 10–15 year product warranty. Inverters generally have a 10–15 year warranty, while some brands of microinverters offer warranties of up to 20–25 years

• Maintenance: Request service records and monitoring reports

• Net metering: Confirm NV Energy’s current compensation for solar exports

• Condition: An aging or poorly maintained system can reduce value

Summary Comparison Table

Valuation Method | Value Estimate | Notes

Replacement Cost | ~$10,000–$15,000 | Based on depreciated install price

Present Value of Savings | ~$19,000–$20,000 | Based on future utility savings

Real Estate Rule of Thumb | ~$18,000–$24,000 | Based on $3–$4 per watt

Leased or PPA System | $0 or lower | Buyer inherits contract; no ownership value

Final Thoughts

In Nevada, solar is not just good for the planet—it can be a strong home asset. But like any home upgrade, its value depends on ownership, condition, and utility policies.

Before you buy, make sure to:

• Confirm ownership and contract terms

• Evaluate system condition and performance

• Consult a solar-savvy appraiser or real estate agent if needed

[By Nevada Chinese Perspective]