Solar is a big investment that has many benefits. Many homeowners have opted for solar and seen a huge payoff, like reduced energy bills and increased property value. However, 44 million American households are rental properties. Do solar panels on a rental property or solar panels on Airbnb make sense?
Putting solar panels on a rental property might mean different things to different people. The first scenario is you’re a renter and you’re wondering how you can use solar power to your advantage. In the second scenario, you own the rental property and wonder if it’s worth investing in solar panels.
Here’s how to navigate the world of solar panels and rental properties!
Using Solar Power as a Renter vs. Owner of the Rental Property or Airbnb
If you’re interested in solar power, the options will look very different if you’re a renter vs. an owner of a rental property. If you own the property, installing solar panels is an option for you. However, as a renter, you will likely be unable to alter the home in a major way. Although your landlord might not want to install solar panels, there are some options for renters to use solar power.
Solar Options for Renters
One way a renter may be able to end up with solar panels on the roof is by simply asking their landlord. This proposal makes more sense if the property is a single-family home. Depending on your relationship with your landlord, this might be worth a shot, especially if you have the facts on energy bill savings and increased property value.
However, this might not be feasible for most renters. Another big way a renter might still be able to go solar is by subscribing to community solar.
People can subscribe to a section of a solar array through community solar and earn credits for the energy their part produces. A subscriber will frequently see credits on their utility statement, lowering total electricity bills. Additionally, they will obtain SRECs (solar renewable energy certificates) for that power, which are vouchers representing your solar power’s environmental value.
Depending on your state legislature, community solar can be cheaper than getting electricity from a utility company. You might even be able to purchase green power right from a utility company. However, if community solar isn’t going to work for you, there are plenty of solar-powered devices you can swap to, and plenty of ways you can make your home more energy-efficient as a renter.
Advantages of Installing Solar Panels on a Rental Property
When it comes to owners of rental properties, there are plenty of benefits that come along with investing in solar panels. If your utilities are minimal and your building is equipped with the newest technologies, you will attract more interest when you are looking for tenants for your rental property. This is where solar comes in.
Here are some great benefits of installing solar on your rental property:
- It raises the value of your property.
- Advanced technology attracts more interest.
- You can earn more by charging a higher rent.
- More income will result after you’ve fully paid for the panels.
- Your building or home will be more environmentally friendly.
Increased Property Value & Tax Benefits
An eco-friendly and energy-efficient home might be difficult for prospective purchasers to pass up. Not only will solar increase your property value when the time comes to sell, but it will also bring you tax benefits.
In 2022, the solar tax credit would allow you to deduct 30% of the cost of installing solar panels in your home on your subsequent tax return. Previously, that was 26%. The 30% rebate has been extended for another ten years; it will return to 26% in 2033 and 22% in 2034.
One more thing you’ll save money on is expensive roofing projects, especially since solar panels provide extra roof protection. However, make sure you’re putting solar panels on a roof that’s expected to live just as long- solar panel removal can be costly.
How Solar Increases Your Cash Flow as a Landlord
One major way solar increases your cash flow is by minimizing your energy bills. This is a major plus, as electricity can be a substantial cost for many homeowners. If you want to cut energy costs substantially through solar, you’ll need the right size of system for the job. Our solar power calculator can provide you with a rough estimate of the wattage required to meet your bill offset goals.
Another big way you’ll earn more income is by having a good reason to charge more for rent. With offset bills, you can raise your rent by including utilities. You can also raise the rent because you have a higher-tech, up-to-date residence for your tenants.
Solar is Attractive to Tenants
An eco-friendly place is becoming a standard that many tenants have. Tenants also want a place with low utility costs. With reduced utility bills, energy efficiency, and earth-friendly technology, your property will be very attractive to prospective tenants.
Know the Costs
Ultimately, installing solar panels on a rental property is a great idea. However, it’s important to know the costs associated with it. If you finance the panels instead of paying the upfront installation cost, you might need to work this into the rent you charge. You’ll also need to pay a monthly connection fee, which can be around $20-40 each month.
Despite the costs, the offset electric bills, tax benefits, high property value, and eco-friendliness make solar well worth it for owners of rental properties.
Go Solar Today in New Hampshire
We founded Energy Shield of New Hampshire more than 40 years ago to offer home renovation and energy efficiency services to our community. We are a family-run business that values forming enduring connections with clients and enhancing their homes. The Better Business Bureau, home and business owner recommendations, and repeat clients have all commended our work.
Are you curious to find out more about solar roof installation in New Hampshire? Fill out our form today to schedule your free roof inspection and consultation with Energy Shield of New Hampshire!