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Here's what determines whether solar panels count as real property or personal property: the single deciding factor is who owns them. If the homeowner owns the panels outright—whether they paid cash, financed them separately and paid off that loan, or bought them as part of the house purchase—then we can treat them as part of the real estate and include their value in the appraisal. But if the panels are leased or covered by a power purchase agreement where someone else owns them, they're legally personal property and we must exclude them from the appraisal value. All four major loan guarantors—Fannie Mae, Freddie Mac, FHA, and VA—apply this same ownership-based rule.

Straight from Fannie Mae Selling Guide and Solar PV: Real vs. Personal Property & Valuation — nothing added.

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→ B2-3-04, Special Property Eligibility Considerations (official agency copy)

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📖 Want the complete reference, not just this passage? See the full Fannie Mae Selling Guide (full guide, not just this bulletin) →

☀️ Want a breakdown of typical solar components and installed costs? This covers what solar is or isn't — not what it's worth. For what systems are typically built from and typically cost (cited to NREL, LBNL, EnergySage, and BloombergNEF, separate from any value question), see the components & cost reference →

© Copyright Notice: © Fannie Mae. UAD 3.6 / URAR reference materials shown for research and reference only. Full documents available at fanniemae.com/uad. Reproduction restricted per Fannie Mae copyright policy.

Relevant News

Recent public coverage related to this topic — cited, not reproduced

Recent California data shows 5-10% premium for owned solar homes

California-specific data shows owned solar panels add 5–10% to home value (about $39,500–$79,000 on median homes), while leased panels generally do not add appraised value.

Read full story at Open Door →

Fannie Mae appraisal guidelines exclude leased solar panels from property value

Under Fannie Mae's appraisal guidelines, leased solar panels, those under a power purchase agreement (PPA), or separately financed with a UCC lien may not contribute to appraised property value.

Read full story at Effective Agents / Fannie Mae guidelines →

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#1 Fannie Mae Selling Guide Page 13

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Solar Panels The ownership and debt financing structures commonly found with solar panels are key to determining whether the panels are third-party owned, personal property of the…

Fannie Mae Selling Guide · B2-3-04_Special_Property_Eligibility_Considerations.txt · Page 13 · View at official source (selling-guide.fanniemae.com) → · Last verified: 2026-10-11

Solar Panels The ownership and debt financing structures commonly found with solar panels are key to determining whether the panels are third-party owned, personal property of the homeowner, or a fixture to the real estate. Common ownership or financing structures include: borrower-owned panels, leasing agreements, separately financed solar panels (where the panels serve as collateral for debt distinct from any existing mortgage); or power purchase agreements. Fannie Mae will purchase or securitize a mortgage loan on a property with solar panels. If the borrower is, or will be, the owner of the solar panels (meaning the panels were a cash purchase, were included in the home purchase price, were otherwise financed and repaid in full, or are secured by the

#2 Solar PV: Real vs. Personal Property & Valuation (Fannie Mae, Freddie Mac, FHA, VA, UAD 3.6) Page 2

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into the Sun: Six-State Solar Home Paired-Sales Analysis" (Hoen et al.) Last reviewed: August 2026 ===================================================================== Solar PV…

Solar PV: Real vs. Personal Property & Valuation (Fannie Mae, Freddie Mac, FHA, VA, UAD 3.6) · Solar_PV_Real_vs_Personal_Property.txt · Page 2 · View at official source (guide.freddiemac.com) →

into the Sun: Six-State Solar Home Paired-Sales Analysis" (Hoen et al.) Last reviewed: August 2026 ===================================================================== Solar PV Systems: Real Property vs. Personal Property, and How Value Is Determined The single most important fact about a solar photovoltaic system on a house for sale is not how new it is, how efficient it is, or what it cost to install. It's who owns it. Every major loan guarantor — Fannie Mae, Freddie Mac, FHA, and VA — draws the same line: an owned system can be treated as part of the real estate and can contribute to the appraised value, while a leased system or one under a power purchase agreement (PPA) is legally personal property and must be excluded

#3 Fannie Mae Selling Guide Page 30

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with solar panels are key to determining whether the panels are third-party owned, personal property of the homeowner, or a fixture to the real estate. Common ownership or…

Fannie Mae Selling Guide · Selling_Guide_Supplement_UAD_3.6_Policy.pdf · Page 30 · View at official source (selling-guide.fanniemae.com) → · Last verified: 2026-09-30

with solar panels are key to determining whether the panels are third-party owned, personal property of the homeowner, or a fixture to the real estate. Common ownership or financing structures include: • borrower-owned panels, • leasing agreements, • separately financed solar panels (where the panels serve as collateral for debt distinct from any existing mortgage); or • power purchase agreements. Fannie Mae will purchase or securitize a mortgage loan on a property with solar panels. If the borrower is, or will be, the owner of the solar panels (meaning the panels were a cash purchase, were included in the home purchase price, were otherwise financed and repaid in full, or are secured by the existing first mortgage), our standard requirements

#4 Solar PV: Real vs. Personal Property & Valuation (Fannie Mae, Freddie Mac, FHA, VA, UAD 3.6) Page 13

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present on the property without folding their value into the sales comparison grid. If a battery is also installed. Home battery storage is increasingly sold alongside solar…

Solar PV: Real vs. Personal Property & Valuation (Fannie Mae, Freddie Mac, FHA, VA, UAD 3.6) · Solar_PV_Real_vs_Personal_Property.txt · Page 13 · View at official source (guide.freddiemac.com) →

present on the property without folding their value into the sales comparison grid. If a battery is also installed. Home battery storage is increasingly sold alongside solar panels, and the same ownership-based rule described above governs a battery exactly the way it governs the panels themselves: an owned or fixture-financed battery can be considered for contributory value under the same standard appraisal requirements, while a leased battery or one tied to a separate financing agreement that allows repossession is personal property and must be excluded, regardless of how permanently it appears to be wired into the home's electrical system. The practical complication is that battery attachment to solar systems is newer than solar panels themselves, and because far fewer home

#5 Solar PV: Components & Typical Installed Costs (NREL, LBNL, EnergySage, BloombergNEF) Page 2

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section of this library. It doesn't address what a solar system adds to a home's appraised value — that depends on ownership status and local market evidence, and is covered in…

Solar PV: Components & Typical Installed Costs (NREL, LBNL, EnergySage, BloombergNEF) · Solar_PV_Components_and_Typical_Costs.txt · Page 2

section of this library. It doesn't address what a solar system adds to a home's appraised value — that depends on ownership status and local market evidence, and is covered in Solar PV: Real vs. Personal Property & Valuation. This file answers a more basic question a seller, buyer, or agent often asks first: what is this system actually made of, and what does something like it typically cost to install. Cost data here comes from national marketplace and government sources, updated annually — it describes national trends, not a quote for any specific house. Panel types and efficiency. The large majority of residential panels sold today are monocrystalline silicon, cut from a single silicon crystal, distinguished mainly by cell

#6 IAAO Standards Page 140

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real property or personal property depending on the type of improvement, intent of the parties to make the improvement real property or personal property, legislative mandates,…

IAAO Standards · IAAO-Glossary_3rd-Ed_final.pdf · Page 140

real property or personal property depending on the type of improvement, intent of the parties to make the improvement real property or personal property, legislative mandates, office policies and procedures, and whether the removal of the property would cause permanent damage to the real property. Trademark — A name, symbol, or other sign that identifies a product or service; officially regis- tered and legally restricted to use by the owner alone. Generally considered as intangible property. Transfer Tax — The tax payable to a state (and sometimes to a locality) upon the sale of real property and the recordation of the transfer. The payment is usually proportional to the sale price and is commonly used by appraisers in the absence

#7 HUD/FHA Single Family Handbook 4000.1 Page 479

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The following property types are eligible for the solar and wind technologies policy: • one- to four-unit Properties • Manufactured Housing (one unit) Condominium units are…

HUD/FHA Single Family Handbook 4000.1 · Handbook_4000.1_-_Defective_Paint_Section.pdf · Page 479 · View at official source (HUD.gov — SFH Handbook 4000.1) → · Last verified: 2026-10-11

The following property types are eligible for the solar and wind technologies policy: • one- to four-unit Properties • Manufactured Housing (one unit) Condominium units are ineligible for solar and wind technologies. Eligible Programs and Transaction Types Costs for new solar and wind energy systems may be added to an FHA-insured base Mortgage, for the following programs: • Section 203(b) o purchase transaction o Rate and Term refinance and Simple Refinance • Section 203(h) Mortgage Insurance for Disaster Victims • Section 203(k) Rehabilitation Mortgage Insurance Program ii. Eligible Solar and Wind Technologies Active and passive solar systems, as well as wind-driven systems, are acceptable. Photovoltaic Systems Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and

#8 HUD/FHA Single Family Handbook 4000.1 Page 617

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photovoltaic solar energy systems are permitted in this program. Solar collectors must be located where they will be free from natural or man-made obstructions to the sun. Special…

HUD/FHA Single Family Handbook 4000.1 · Handbook_4000.1_-_Defective_Paint_Section.pdf · Page 617 · View at official source (HUD.gov — SFH Handbook 4000.1) → · Last verified: 2026-10-11

photovoltaic solar energy systems are permitted in this program. Solar collectors must be located where they will be free from natural or man-made obstructions to the sun. Special Energy Systems not part of the real estate must not be included in the appraised value. Required Analysis and Reporting The Appraiser must analyze and report the local market acceptance of special energy- related building components and equipment, including solar energy components, high-energy efficiency housing features and components, geothermal systems, and wind powered components. ii. Other Energy Related Building Components Definition Other Energy Related Building Components refer to components in the Property designed to reduce energy requirements. Required Analysis and Reporting The Appraiser must note which features are installed in a house

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