Benefits of Solar Panels for Rental Properties
December 20, 2023 | Reading Time: 7 minutes
There are many benefits of solar panels for rental properties. If you want to increase the profitability of your investment property or cut your utility expenses, solar may be the answer you are looking for.
Many investors are choosing now to install solar panels due to the ample amount of solar incentives accessible in Massachusetts and Rhode Island. These incentives decrease the initial cost of the solar energy system and kickstart a lifetime of savings with zero-dollar electric bills.
Benefits Of Solar Panels for Rental Properties
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 when switching to solar. They’re able to save money each month and increases the value of their property.
Pass On Excess Energy Production To Other Properties Including Your Personal Home
- Rental property owners can take advantage of the property’s solar panels as any excess energy production can be sent to another home in the same grid.* This applies to your personal home or business. Landlords can double up on the savings from one solar panel installation, maximizing the value of the initial investment.
Justify Charging More For Monthly Rent
- If electricity costs are completely eliminated from rental agreements, you can choose to 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 fixed increase in rent will endup being less than they would have paid in varied electricity bills from month to month. You’ll be saving your renters money and giving them peace of mind during high electric months.
Increase The Value Of Your Property
- 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. On average, homes with solar panels have sold 9% higher, according to Zillow. A system that is completely paid off will increase your cash flow by the thousands.
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 day to day routines. 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.
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 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. It is typically recommeded that solar not be installed on roofs greater than ten years old.
- Electrical Upgrades – Older properties may have outdated electrical boards that need to be replaced before solar installation which can increase your initial costs.
If you are curious about if solar panels make sense for your rental property give us a call at (508)-717-3820 or start your free quote.