New GREEN Appraisals Act Requires Federal Mortgages to Value Solar Panels and Efficiency Starting 2026

The Getting Renewable and Energy Efficient Neighborhoods Appraisals Act of 2025 (GREEN Appraisals Act) is designed to fix a problem many homeowners face: when you invest in solar panels or serious energy efficiency upgrades, the appraisal for your mortgage often ignores the value of those improvements. This bill forces federal housing agencies—like those backing FHA, VA, and Fannie/Freddie loans—to make sure those green features are actually counted when determining a home’s value, starting March 1, 2026.

Finally, Green Upgrades Count

Right now, if you put $30,000 into making your house a net-zero energy home, the appraiser might look at the comparable sales down the street (the ‘comps’) and ignore the fact that your monthly energy bill is $50 lower. The GREEN Act changes this by creating a formal process to include energy data in the appraisal. For any federally backed mortgage application (a “covered loan”), your lender must notify you that you can submit an “energy report” about your property. This report details features like insulation, solar generation, and estimated energy savings.

If you provide that report, and you consent, the lender must send it to the appraiser. And here’s the key: the qualified appraiser must then factor that information into the home’s valuation. This means that if you’re selling a house with a brand-new, highly efficient HVAC system and great insulation, the appraisal should, in theory, reflect the market value of those features because of the proven lower operating costs. The bill specifically defines the required energy reports, often citing standards like the HERS rating or the DOE Home Energy Score, ensuring the data is reliable.

What This Means for Your Mortgage

For regular folks, this is huge. If you’re a buyer, this means the mortgage you get will better reflect the true long-term value of an energy-efficient home, potentially increasing your borrowing power for that property. If you’re a homeowner, this removes a major barrier to investing in green technology, because you can be more confident that your investment will increase your home’s resale value. The bill also requires that a loan application or appraisal cannot be rejected just because an energy report was considered, offering some protection.

Furthermore, the bill mandates that the federal agencies involved (FHA, VA, etc.) must create clear guidance on how to implement this. This includes requiring appraisers to take a specific 7-hour continuing education course and pass an exam to become a “qualified appraiser” for these loans. This is a massive shift for the appraisal industry, which will need to update its systems and training to adapt.

The Fine Print: Where the Value Gets Fuzzy

While the intent is great—standardizing the valuation of green features—there is a bit of a gray area in the implementation. The bill states that the new agency guidance won’t dictate exactly how much an appraiser must weigh the information in the energy report. This means that while the appraiser must consider the data, they still have significant discretion over the final valuation. You might still see inconsistent results depending on the appraiser, the local market, and how they decide to interpret the energy savings into dollar value.

Essentially, the GREEN Appraisals Act forces the financial system to open its eyes to the value of energy efficiency, but it leaves some of the heavy lifting—the actual dollar calculation—up to the trained professional. For busy homeowners and buyers, this is a clear win for transparency and investment value, ensuring that your solar panels are seen as more than just expensive roof decorations during the most important financial transaction of your life.