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Residential and Commercial Valuation of Solar
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The
number of solar photovoltaic (PV) system installations is continuing to increase as
the price becomes more feasible in many markets. Appraisers will find the
valuation a challenge without knowledge of the technology and data available to
use the most appropriate methodology. Appraisers must expand their knowledge
base to understand how electricity is priced, how solar PV is priced, and how
solar PV functions to develop a credible value. If you are seeking education
that will hone your skills or teach you new ones, this is the course for you. Residential
and commercial appraisers will work together to apply an income capitalization
approach and cost approach to valuing energy produced for solar PV systems. All
you need is a tablet or iPad, with Internet access, and you will use
free online software to value the energy that solar systems produce. This is an advanced course that requires the use of a discounted cash flow analysis. Because of its difficulty, double AI CE points are awarded. Important Course Requirements: This course uses free, third-party software known as PV Value or Ei Value to complete the case studies. The software has been vetted by the Appraisal Institute, but course participants should have knowledge of the discounted cash flow analysis. The case studies emulate appraisal problems that appraisers face every day. For educational purposes only, the case study provides a discount rate to use in this course. Appraisers must analyze and conclude the appropriate discount rate for their market, which will change based on the local market’s view of solar and changes in kWh prices, solar production, and cost new. Please note. This
course does not address utility-scale solar (solar farms), solar thermal, or
other on-site renewable energy generation.
Note. This course is in the Valuation of Sustainable Buildings Professional Development Program. View this list of FAQs, which includes information regarding the courses you’ll need to complete the program successfully.
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| Sponsor |
Date |
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Delivery Format |
Check
State Approvals |
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| Appraisal Institute |
On Demand |
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Online |
Check |
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Program State Approval & Hours
Some AI educational programs may not be approved in every state and every delivery format. To see a list of all state approvals across all formats for this course, please use the link below.
View all approvals for this course
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- Real property appraisers
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Assessors
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Underwriters
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Lenders
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Builders
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Real estate agents
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Quality control personnel
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Architects
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Engineers
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Solar installers
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Recognize key solar PV terms.
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Identify and use the documents and data necessary to value solar PV systems.
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Describe and analyze solar PV components and identify their relevance to market valuation.
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Develop a credible value opinion using tools, worksheets, and resources provided in the course.
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Recognize potential valuation problems, including USPAP and lender/underwriter concerns.
- An Introduction to Valuing Commercial Green Buildings seminar OR
- Valuation of Green Residential Properties seminar
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Appraisal Institute CE Points
Attend: 150 AI Points, Attend and Pass Exam: 200 AI Points, Pass Only: 0 AI Points
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For Online: Participants must complete mandatory assignments in this program. Please plan your time accordingly and allow up to 5 days for the instructor to review your assignments. The instructor may ask for a re-submission of incomplete assignments. You may advance through the program while you are waiting for your instructor to review your work. You may also contact the instructor to request expedited review. Note. Online students with limited knowledge of solar PV and discounted cash flow analysis will likely spend more than 14 hours completing this class.
For Classroom: After you register for this class, please go to your Education and Events page for details on what you must complete BEFORE class begins. To access your Education and Events page, log on to the Appraisal Institute website at https://ai.appraisalinstitute.org/eweb (click on the three horizontal lines to the left of the AI logo and select “My AI Account” from the drop-down menu).
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Classroom & Synchronous Online
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Required and/or Recommended Equipment
Classroom & Synchronous - A financial calculator is required. The accepted model used in the program is the HP-12C. AI education programs that require a financial calculator are developed with HP-12C keystrokes; using this model is highly recommended.
You must be familiar with calculator operation when the program begins. Do not enroll expecting to be taught how to use a financial calculator. HP-12C calculator User’s Manual. - This course uses free, third-party software known as PV Value or Ei Value. PV Value requires registration to use the program. Be aware it can take up to 24 hours after registering to receive an email with the login information. Once you sign on to this site, directions are provided for downloading the PV Value tool.
Alternative to using a third-party software in the course. Proficient users of Excel may design a discounted cash flow analysis to work each assignment as an alternative to using PV Value. The Appraisal Institute does NOT provide an Excel discounted cash flow analysis. Online - A financial calculator is required. The accepted model used in the program is the HP-12C. AI education programs that require a financial calculator are developed with HP-12C keystrokes; using this model is highly recommended.
- You must be familiar with calculator operation when the program begins. Do not enroll expecting to be taught how to use a financial calculator.
- Free Review: Using a Financial Calculator: Formulas, Symbols, Math Review, and Sample Problems; and
Classroom & Synchronous Software
PV Value®—Ei Value®
https://www.eivalue.com/
- During this program, we will use the income capitalization approach through a DCF of the energy produced by the solar PV system. The software is free, has been vetted by appraisers, and is easy to use.
- Note. The software is not the only tool available to develop a DCF. Appraisers with good Excel skills may have their own DCF that meets their needs.
- Register for a free Ei Value® account to download the iPad app from the iTunes Store for tablet use. You will use this software to work on the case studies in this program.
- Though dated, the original PV Value® user manual provides excellent information on the authors, the model, and the source of information.
Roof Azimuth Tool— - This online tool from Solmetric can help establish an estimate of the azimuth when one is not available on site. Ei Value will allow you to estimate the azimuth also. PV Value does not have this capacity.
Online Online Education FAQ
Software
PV Value®(computer) or Ei Value®(iPad)
- During this program, we will use the income capitalization approach through a DCF of the energy produced by the solar PV system. To do this, the software below is free, has been vetted by appraisers, and is easy to use.
- Computer: Register for PV Value at https://www.pvvalue.com. Register as an appraiser. When working the case studies, say you are a licensed appraiser in the state of the case study to produce the final pdf of the worksheet.
- iPad: Register for Ei Value at https://www.eivalue.com. Then download the iPad app from the iTunes Store. You will use this software to work on the case studies in this program.
- Note: The software above is not the only tool available to develop a DCF. Appraisers with good Excel skills may have their own DCF that meets their needs.
- Though dated, the original PV Value® user manual provides excellent information on the authors, the model, and source of information.
Roof Azimuth Tool - http://tools.solmetric.com/Tools/roofazimuthtool
- This online tool from Solmetric can help establish an estimate of the azimuth when one is not available on site. Ei Value will allow you to estimate the azimuth also. PV Value does not have this capacity.
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Classroom & Synchronous Course Materials Include:
- Course Handbook (354 pp.)
- Pre-Class Memo (2 pp.)
- Pre-Class Downloads (2 KB)
If you choose to download course materials, it is best to bring a printed hard copy to class since it is difficult to change computer screens to find the data needed for using the software in solving the case studies.  This course is approved for 15 GBCI CE Hours by the USGBC. You will be asked to clear the calculator’s memory before and after the examination. Only one calculator is permitted in the testing room. Examinees taking most AI exams may bring their own calculator to use during the exam. Laptops, cellular phones, tablets, iPads, wearable technology (smart watch, Apple Watch, Google Glass, etc.), and other devices that can store data or connect to the Internet are NOT permitted during the exam. In addition, all watches, wallets, bags, and purses must be removed and stored out of reach prior to taking the exam. Online Exam:
This course contains a proctored, offline exam that may be required for credit in some states. Please contact your individual state(s) for specific exam requirements. Participants taking the class for the Professional Development Program are required to pass the exam. You will have 90 days from the time that you complete the course to take the exam. Testing center locations in your area can be found by clicking on this link: www.pearsonvue.com/ai.
Exam FAQ
Online Course Access
Go to www.appraisalinstitute.org and log in with the username and password you used when you registered. Click on the red “My Account” button if you are not automatically taken to your account page.
1. Click "Education and Events" on the right navigation menu.
2. Find the course under the “Online Courses” heading and click the “Begin” button.
IMPORTANT NOTE: Once this button is clicked, your access length time (e.g. 90 days) will begin. Only click when you intend to start the course. If you are returning, once you have started the course, click the “Continue” button to continue.
 This course is approved for 15 GBCI CE Hours by the USGBC.
Other Details
For information about how on demand online education programs work, registration and cancellation policies, and other details, see our On Demand Online Education Frequently Asked Questions or email ol-help@appraisalinstitute.org.
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