You Rent A Condominium
When you rent a place in a condo, youll have to face more issues while trying to go solar. Since there are different households that share the territory here, youll have too many people to discuss it with.
Also, youll have to make sure that the condo board that usually runs all the utility-related questions, will support you and give you the permission to install anything on the roof or anywhere on the condo territory.
Will Solar Panels Improve Your Rental Property Value
The question of whether or not to install solar panels on your rental property is one that must be answered by looking at the numbers. Despite the increasing availability of residential solar, installing solar panels on a single-family house still comes with a large up-front expense. However, if having solar panels on a rental house would help attract better tenants and reduce utility costs, installing them may more than pay for the initial price over the long term. For rental property owners, it is important to consider the pros and cons of adding solar panels to your rental property and, most importantly, whether or not doing so will improve your bottom line.
The concept of using solar energy to power a rental property is an attractive one. Images of $0 electric bills and less reliance on fickle public utility companies are often the first thing that comes to mind when considering the advantages of solar panels. But is that the reality? Unfortunately, the answer to that question is: it depends.
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Solar Benefits For Non
Solar panel systems offer a common benefit, regardless of their size: they generate electricity from sunlight, reducing the amount of electricity you must pay your utility company for each month. Solar power also lowers the environmental footprint of your home, especially if you live in a region where most of the grid electricity comes from fossil fuels.
Homeowners get a few extra benefits when they install a traditional solar system, including:
- Their property becomes more valuable, and many states don’t charge increased property taxes for the portion of home value that corresponds to solar panels.
- Homeowners also qualify for the 26% federal solar tax credit as well as any additional incentives from state governments or utility companies.
- There are permitting and grid connection requirements to meet, but once the solar PV system starts operating, it provides electricity for decades with minimal maintenance.
While mini solar panel systems may not be eligible for these perks, they have their benefits compared with rooftop systems. For example, they are much easier to install, with no permitting involved, and any maintenance is much simpler. Small-scale solar systems also have a lower price, and they are easily relocated.
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Solar For Landlords: The Easiest Way For Rental Owners To Save
Solar has taken off in America, with more homeowners and tenants benefiting from clean energy and utility bill savings than ever before. But landlords and property owners have taken a more tentative approach to the market, given the extra effort and investment required to put panels on the rooftop and the lack of readily apparent benefits.
Now, community solar is changing the calculation for property ownersand more landowners are beginning to jump on the solar bandwagon.
Other Options For Solar On Rental Properties
Landlords looking to install solar on their rental properties dont have to limit themselves to using Matter or a similar service.
One alternative would be to simply install solar, give the tenant the full benefit of all the electricity generated, and make good on the investment through charging higher rent. I know I would definitely be willing to pay a premium for a rental property with solar.
Another option would be for landlord to have the electricity account in their name and provide electricity to the tenant at a discounted rate. Alternatively, electricity could be provided free as part of the rent or as a fixed charge, potentially with incentives to discourage excessive use. While this is not as easy to set up as it sounds, it is a common arrangement overseas3.
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Typical Yearly Savings With Solar
|1 person household/ low solar usage home||2-3 person household / medium solar usage home||4+ person household / high solar usage home|
|Typical yearly electricity bills before solar||$1,070 $1,220|
|Typical yearly electricity bills after solar||$438 – $532|
|Estimated typical yearly savings with solar||$634 – $689||$849 – $938||$1045 $1,160|
*You can choose to contribute towards the loan for the solar system but no more than 50% of the monthly repayment amount.
The annual contribution by the tenant cannot exceed $231.25 and it can be lower following agreement with the landlord.
The results included in this table is supplied as a guide only. Consumption profiles reflect the Essential Services Commissions Victorian Energy Usage Profiles, while calculations of savings are based on the Victorian Default Offer 2020 tariffs and make reference to dwellings located within Melbourne Metropolitan area.
Your actual energy consumption may differ from these estimates depending on many factors such as the characteristics of your dwelling, your energy mix and your lifestyle. Additionally, the actual savings that you may be able to achieve with PV depend on your electricity consumption, your electricity plan and other factors specific to your dwelling such as geographic location, roof shading, roof area, roof pitch and more.
Solar Should Be For All Victorians
The Greens support the Governments plan to put solar on 650,000 homes. Well go further, its time that renters and people in apartments had access to solar too. Thats why the Greens have a plan for Solar Gardens, our innovative solution to unlock solar for all Victorians, and will put solar panels on every public housing house in Victoria.
Solar gardens for renters
Almost two million Victorians rent their home, but right now they are locked out of solar and their homes are often draughty, with no insulation. For too long, people who rent their home have missed out on the opportunity to produce clean energy and reduce their power bills.
The Greens have a plan to create Solar Gardens, so people who rent their home can finally access solar, wherever their home is.
The Greens plan would give $1,000 per adult who lives in a rental home, to buy into a solar power station on a nearby roof, such as a train station. The energy your solar panel produces will be credited to your bill, and this credit moves with you, wherever you go.
Power Victoria, the Greens proposed public electricity retailer, could build and manage Solar Gardens on public and community buildings and in partnership with private businesses.
Solar for apartments
People in apartments have also missed out on solar. The Greens plan would give apartment owners access to solar gardens.
Solar for public housing
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Benefits Of Renting Solar Panels
Instead of paying the upfront costs associated with buying solar panels, you make monthly lease payments when you rent. In many instances, the company leasing you the panels is also responsible for maintenance, but it’s vital to check upfront that it covers all maintenance and repairs.
You will receive energy savings with solar panels. How much you save, however, depends on your home’s electric consumption, the electric rate your supplier charges and the size of your solar energy system.
Our Plan To Cut Power Bills For All Victorians
- One in four Victorians rent their home, and currently have no option to save on their bills through solar.
- Making a home energy-efficient can cut energy bills by up to $1000 a year, but landlords rarely upgrade rental properties.
- The Government has announced a 50% rebate for owner-occupiers to put solar on their roofs, but that leaves out people who rent their home and those who live in apartments.
The Greens Plan
- Solar Gardens for people who rent their homes and apartment owners. You can buy a solar panel on a nearby building and the energy it creates is credited to your bill. If you move, you still own the panel and the credit moves with you. $1000 grants per renter to help you buy into the scheme.
- Minimum energy efficiency standards that landlords must meet by 2020.
- $1000 grants to replace inefficient, expensive gas heaters with efficient heat pumps
- Changing building regulations to require all new homes to have solar panels on the roof or solar hot water if the roof does not allow for solar panels.
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Homeowners Trapped By 25
Householders who lease their roofs to power firms find it hard or costly to move home
It seemed a win-win situation until recently, when she needed to sell the house. Her buyers mortgage application was refused because of the lease agreement, which had effectively signed over a large part of the roof to the solar company.
A clause in the lease allowed us to buy out the panels for a fee to compensate the company for the loss of their FITs, she says. We were prepared to do it to be able to sell our house and move on with our lives, but the company had passed the management of the panels on to an agent, who seemed reluctant to let us proceed.
Eventually, after the Observer intervened, Griffiths was allowed to buy the panels for £20,500, an uncosted sum that she was told was non-negotiable. Not only was this nearly double the price shed have paid to install the system herself, but she had also missed out on nearly eight years of FITs worth, around £7,300. All in all, the free system has left her around £16,000 out of pocket.
I am retired with MS and need to sell my house, but the buyer is refusing to go ahead unless I have the panels removed
The government introduced the generous incentives in 2010. The FITs, funded by a levy on all energy bills, have encouraged 800,000 households to go solar, but they have also spawned a multitude of startups that have exploited homeowners.
* All names have been changed
Window Solar Panels For Apartments
Offsetting your entire apartments energy use isnt the only way to go solar. One way to step into solar energy, keep life simple, and add a fashionable piece to your home is to buy a window solar charger.
A solar charger is a great way to harness solar energy right in your apartment without any complex installations. Our friends at Grouphug Solar make a perfect apartment-friendly product for renters. Simply hang your solar panel in a sunny window and, voila, it will produce enough energy for you to power devices like your cell phone.
Bonus benefit: the more people who have solar in their home, the more normalized the technology gets. Do you know the number one reason people actually go solar? Its actually not the environment, and its not even saving money. Its because they know someone else who did it. So getting a solar charger wont just benefit youyou might just inspire someone else to go solar, too.
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Modular And Portable Systems
Some solar systems can be set up with little to no installation processes no bolting racking to the roof or installing heavy ground-mounted poles.
Lightweight, flexible panels from SunPower® can be a great choice for renters and travelers, easy to transport and set up quickly.
There are also specialty solar kits that can install on your balcony railings, window ledges, and banisters, allowing you to make the most out of your apartment or home space, without needing to install.
Some of these systems even qualify for the 26% federal rebate, so you might end up saving more than you expect!
You Rent A Townhouse/rawhouse
The coolest thing about the townhouses is that you can share the solar power system with your neighbors. It means that you can invest in it together, share the expense and then share the power supplies.
If some of your neighbors dont really need this energy, you can offer him to use it as an investment and benefit out of it by leasing his/her portion of the system. That, my friend, is the solar communities initiative that we discussed earlier today.
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Total Savings Over A Year For Tenants And Landlords
There are plenty of variables that affect how much tenants are likely to save and landlords likely to make using Matter. But I will make an estimate using Matters suggested 18.2% discount and a charge of 6 cents for every kilowatt-hour of feed-in tariff received. I am not going to use Matters completely unrealistic self consumption rate of 70% that might only be achieved by herbal entrepreneurs, and will instead use a much more realistic, but still high rate of 30%. My assumptions are:
- The solar system is 5 or more kilowatts and produces an average of 7,300 kilowatt-hours a year.
- The tenant consumes 30% of the solar electricity generated.
- The tenant pays 30 cents a kilowatt-hour for grid electricity.
- The landlord charges the tenant 24.55 cents per kilowatt-hour for solar electricity.
- The tenant receives a feed-in tariff of 11.3 cents.
- The landlord charges the tenant 6 cents for every kilowatt-hour that receives a feed-in tariff.
Under these circumstances a tenant can expect to save a total of $390 over a year. The landlord would receive $844 a year in total, but after Matter takes their $168 in fees it will come to $676.
As you can probably see, when the landlord only gets 6 cents for each kilowatt-hour that receives a feed-in tariff, there is a considerable risk of their return being considerably lower if the tenants self consumption falls below what is expected, or if new tenants have lower self consumption.
Can A Tenant Pay Their Own Electric Bill
If the tenant pays their own electric bill: If the tenants living in your units pay their own electric bill each month, the addition of solar power can help them reduce costs. Since your tenants electricity bills will be reduced or even eliminated, a solar PV system can be a way to justify higher monthly rent.
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What Are The Advantages Of Renting A Roof For A Solar System
How you benefit from SENS
- Use unused roof space sensibly and earn money: up to 30 years of income or a large one-off payment
- It’s your decision: roof renovation or rental income
- Save energy costs: generate green electricity on the roof yourself and improve your image
- Your own consumption of the electricity generated may also be possible
- No work for you: arranging the investor, planning, permits, construction, maintenance and servicing – we take care of everything
- No risk: no investment costs or contributions are required from you
- SENS is a strong partner. Don’t let just anyone onto your roof!
How Landlords Benefit From Solar Arrays On Apartment Buildings
More and more people are conscious about the amount of energy they use, and where that energy comes from. Unfortunately for millions of people who rent apartments, the current benefits of solar are almost exclusively going to homeowners. Its difficult for an apartment dweller to get the environmental benefits of solar panels because they cant purchase the panels for their rented living space.
Since solar has become such a popular way for people to reduce their carbon footprint through renewable energy resources, landlords that install solar panels on an apartment complex can realize the financial benefits of generating energy from the sun, but also gain a competitive edge in attracting renters for whom solar energy is a desirable perk.
Matter Suggests Tenants Receive An 182% Discount
The landlord determines how much of a discount tenants receive on solar electricity they use, compared to the price of grid electricity. The landlord could provide no discount at all, but they are not allowed to charge more than the price of grid electricity.
Matter suggests a 20% discount exclusive of GST. If you are a normal human being who is just looking at what you actually have to pay for electricity, that comes to about an 18.2% discount. So if you are paying 30 cents a kilowatt-hour for grid electricity, with Matters suggested discount, you will save almost 5.5 cents per kilowatt-hour of solar electricity used.
Many retail electricity plans already come with discounts that can be as high as 33%. Matter will check what sort of discount, if any, tenants are receiving, to ensure they pay less than the cost of grid electricity.
A Buy Green Power Directly From Your Utility
Most utilities offer green power options to their homeowners.
Under these green rate plans , consumers are guaranteed that a certain portion, if not all, of their energy usage is sourced from certified renewable energy sources.
You wont save any money by purchasing green power in fact, green power options usually cost a few cents more than standard electricity rates. But this option does offer consumers peace of mind that they have reduced their carbon footprint.
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How Can Landlords Benefit From Solar
If the tenant is paying the energy bill and seeing the savings, why would a property owner switch their properties to solar energy?
We get this question from a lot of property owners, and its a fair point. If youre considering putting a $10,000 solar system on your roof, its understandable to want to see a return on your investment.
But more and more landlords are realizing that solar can be about more than just living their valuesit can make financial sense as well.
Some property owners we talk to, especially those of you who live on the property and rent some part of your home or property to tenants, will see the benefits show up on their electric bill. If you have multiple electric meters for different units, you can even have all of the energy bill credits go directly to a single electric bill. And, much like a home renovation, rooftop solar can also increase your property value if youre considering selling the property at some point down the road.