Isaksen Solar Blog

Benefits Of Solar Panels For Rental Properties

If you are an investment property owner looking to increase the profitability of your property or cut your overall expenses solar may be the answer you are looking for. Many investors are installing solar panels with the solar incentives in Massachusetts and Rhode Island that decrease the overall price and start immediate savings in their energy prices. 

Once solar panels are installed, they are a lifetime revenue source on your rooftop. As a solar company, we believe its useful for homeowners to know all of the benefits they could experience if their rental property is a good fit for solar, so we took the time to cover the advantages that made our customers go solar in Massachusetts and Rhode Island.  

Benefits Of Solar Panels On Rental Property

Pass On Excess Energy Production To Other Properties Including Your Personal Home

  • Rental property owners can take advantage of solar panels at one rental property  to create savings at another property. If you own multiple investment properties, installing solar panels on one property can benefit multiple properties as any excess energy production can be sent to another home in the same grid.* This also applies to your personal home or business that does not have solar panels. This allows landlords to double up on the savings from one solar panel installation and maximize the value on the investment.

Justify Charging More For Monthly Rent

    • To continue from the previous benefit, if electricity costs are completely eliminated from investment properties and there is only a loan payment then you can roll that expense into rent. Instead of your tenants setting up an account with their local provider and paying another bill each month, they pay a higher rent which covers the cost of the loan on the solar panels. This increase in rent will endup being less than they would have paid in electricity bills over the course of a year saving them money and giving them piece of mind during the summer months when they are running their air conditioners. Instead of the tenants paying fluctuating electricity bills, landlords can charge their tenants one fixed price this has made apartments more attractive to rent. 

    Increase The Value Of Your Property

      • Most renovations only offer a marginal increase in the property value that take time to get back in monthly rent or when you eventually sell the home. Solar panels save you money the day they start producing and once they are paid off you benefit from free electricity. This increases the value of your property by removing an expense for future owners. With rental properties being a long-term investment, the solar panels are paid in full before the property is sold so there is should be no payments for the new owner to take over. Additionally, every month after the solar system is paid off, the owner benefits from free electricity. When the property is sold on average homes with solar panels have sold 9% higher, according to Zillow. System that is completely paid off and increasing thousands of cash flow. Solar will increase your cash flow which will increase the value of your property.

      Create Savings Or Completely Eliminate Electric Bills

      • Installing solar panels at your rental property will offset the price of electricity by replacing your monthly electric bill with a monthly loan payment that is less than your current energy costs. This replacement allows landlords to lock in a monthly price that will not fluctuate like a electricity bill does seasonally or after rate and delivery charge changes. Meanwhile, the energy production from their solar panels greatly reduce or completely eliminates their electricity costs
          • We understand that most landlords only pay for their meter so it may not apply for you but if you are paying for the building’s electricity solar locks in guaranteed savings. 

      Decrease Your Property’s Carbon Footprint

      • Solar panels are one of the most effective was to substantially reduce your carbon footprint. While most green practices require a change in your current lifestyle, solar panels allow homeowners to live a more sustainable life without any change in their current day to day. With solar panels, a home is cutting its reliance on fossil fuels and powering their home with clean energy from the sun. This switch to renewable energy also comes with federal and state solar incentives that offset the total cost of the solar installation. 

      Adding solar to your home is like having a new tenant sign a 25-year lease and paying you every month to live on your roof. Between federal rebates and state solar incentives, landlords are benefiting from reduced upfront costs to switch to solar, able to save money each month in operating costs and increasing the value of their investment. 

      Drawbacks Of Solar Panels For Rental Properties

      There are some potential hold-ups for installing solar on your rental property: 

      • Upfront cost – Pricing of solar installations vary on production needed but are a significant financial investment 
      • Meeting Structural Requirements – Many rental properties are older homes which may not meet the structural requirements needed for solar
      • Electrical Upgrades – Older properties also may have outdated electrical boards that need to be replaced and can increase your overall installation cost

      If you are curious about if solar panels make sense for your rental property give us a call at (508)-567-0647 or start your free quote

       

      * There are local limitations that apply to transferring excess power within the same grid. In Massachusetts the two properties must be within the same geographic area. As an example, an Eversource customer living in Dartmouth cannot send power to their Eversource property in Boston. In Rhode Island, you can only send power to other meters on the same property. You cannot send to another property throughout the state unless the same name is on both bills.