GREEN Appraisals Act: Bill Requires Lenders to Let Borrowers Submit Home Energy Reports for Mortgage Appraisals

A new bill, the GREEN Appraisals Act of 2025, is looking to factor your home's energy smarts into the mortgage process. If you're applying for a mortgage backed by major federal agencies (like FHA, VA, or those overseen by FHFA), lenders would have to give you a heads-up: you have the option to submit an "energy report" detailing features like solar panels or efficiency upgrades. The core idea is to get appraisers to formally consider whether these green features add real market value to a property, which could potentially influence your loan.

Shining a Light on Energy Reports

So, what exactly is this "energy report"? Think of it as an energy scorecard for a house. As defined in the bill, it's an analysis looking at energy-related features, estimating potential cost savings, or even calculating energy generated by things like rooftop solar. Lenders must inform borrowers they can provide such a report. The bill also mentions borrowers can request one, and lenders must provide a free copy upon request, though it's initially unclear who covers the cost of creating the report if the borrower wants one considered. Importantly, the required disclosure also notes that while an appraiser will consider the report, the final property value might not change, and considering the report could potentially help or hurt the borrower's ability to get the loan.

The Appraiser's New Homework

Right now, how much attention appraisers pay to energy efficiency varies. This bill mandates that "qualified appraisers" – specifically those who've completed at least 7 hours of continuing education focused on energy reports – must consider any energy report provided during the appraisal process. They're required to look at the details: the efficiency measures, renewable energy systems, estimated savings, and how the home's energy use compares to similar properties. Their job, according to the bill, is to determine if these characteristics impact the property's market value. The legislation doesn't dictate exactly how appraisers should value these features, just that they must be factored into the analysis.

What Lenders and Agencies Have to Do

Lenders face new requirements beyond just the initial disclosure. Starting March 1, 2026, they'll need systems in place to provide the energy report to the appraiser (but only with the borrower's consent). A key protection for borrowers: lenders are prohibited from rejecting an appraisal or denying a loan application solely because an energy report was considered. Federal housing agencies (including FHA, VA, RHS, Ginnie Mae, and FHFA) are tasked with jointly issuing guidance on how these appraisals should work, setting procedures for disclosures and report sharing. They also need to ensure their systems, and those of the lenders they work with, are updated to handle this within two years of the bill's enactment. An advisory committee with members from housing, energy, consumer groups, appraisal, and lending sectors will be formed to advise these agencies.

The Bottom Line: Will It Change Your Home's Value?

This is the practical question for homeowners and buyers. The bill ensures energy reports get a look, but doesn't guarantee a specific outcome. As the required disclosure states, it's not certain the report will change the appraised value. If the report highlights significant energy savings or valuable features like solar panels that resonate with local buyers, it could lead to a higher valuation, potentially helping with loan approval or refinancing. However, if the report reveals a home is less efficient than comparable properties, it might not help, or could even negatively impact the valuation or loan prospects. Ultimately, the impact hinges on the appraiser's professional judgment and whether the local market demonstrably values these energy features.