Developing Aggregated Datasets to Standardize the Collateral Valuation Process Utilizing an Economic Pricing Model.

Due to the difficulty in developing credible opinions of value for solar assets, there is a disconnect between traditional mortgage lending which uses established appraisal methodologies and current solar lending efforts which are limited in their ability to utilize those same tried and true appraisal methodologies. This disconnect restricts the amount of capital available for the solar market even if a homeowner is willing and able to borrow the funds for the installation of solar on their home. This is further evidenced in the average cost of capital for the residential PV system marketplace of 12.5%-nominal in 2012 vs. a comparable 1st mortgage rate of 3.66%-nominal. Residential solar PV assets are treated more like personal property for lending purposes instead of collateral for a low risk loan which can then be securitized. This limited access to capital and the higher cost of that capital leads to a slower adoption rate of solar in our local communities. This barrier in developing credible opinions of value can be eliminated through data collection efforts that result in the effective application of an economic pricing model, similar to what the automobile valuation guides have done for the automobile industry in allowing a lender to make a loan before the car is purchased. This will result in a verifiable solar asset value that lenders can confidently use as the collateral value for a loan. By solving the collateral valuation issue, the marketplace can then provide greater access to capital and at a lower cost than is currently available. Developed and launched a solar valuation web application which enables the collection of site specific datasets on solar homes and commercial buildings from professional users Develop and launch a data hub application with site specific datasets and valuation algorithms. This includes mobile applications for tablet devices. We will also develop a solar valuation model for appraisers and other transaction process professionals. Appraisers, Lenders, Insurance Companies, Realtors, Green Raters, Credit Rating Agencies, Third Party Owners, and most importantly Homeowners can all benefit from a data collection effort that results in a transparent value for the solar asset that can be reliably and efficiently developed throughout the transaction process. Additionally, enabling the largest source of low cost capital which is in the mortgage marketplace will help enable the mass market adoption of solar across the country.