VALUATION OF…
Solar Panels
Rooftop or ground-mounted solar installations valued separately from the host building, typically on embedded generation savings or feed-in income.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Rooftop or smaller-scale solar installations are generally valued using the Cost Approach (Depreciated Replacement Cost), reflecting the installed cost of the system less depreciation for age and remaining useful life, unless a specific feed-in tariff or power purchase agreement generates an independently identifiable income stream, in which case an Income Capitalisation approach applied to that income is preferred.
The Big Five framework applies only partially: where the installation generates embedded savings for the host building’s own consumption rather than third-party income, there is no separate market rental to analyse — the value contribution is more directly assessed as the discounted value of the future electricity cost savings compared to the depreciated replacement cost of the system.
A Direct Comparison cross-check on a rate per kWp of installed capacity, against sales or installation costs of comparable systems, should be used to test the primary valuation, having regard to system age, panel degradation and inverter replacement cycles.
Caselaw
Case law, regulatory rulings and expert-determination disputes relevant to valuing this asset class. Each entry cites its source and summarises the practice implication for valuers — this is not investment, financial, or legal advice.
The Evidence Log is for VDH Members
The Evidence Log for Solar Panels — sourced sales, disposals and rentals with Valuer’s Lens commentary — is included in VDH Membership: from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.
The methodology and case law on this page remain free to read.