Solar Panels on Rental Properties
In the past, many property investors found that the cost of installing solar panels outweighed its benefits. They were not only a green solution, but they also helped tenants pay less for their electric bills. However, solar panels do not just cut down energy costs. They have other benefits, whether you’re a tenant or a landlord.
Are solar panels worth it?
As a landlord, you might be looking for reasons why you should invest in solar panels on a property that you will be renting to others eventually. According to the folks at Sandbar Solar, they believe that solar panels cut down the costs of electric bills, increase the land’s value, and protect the environment. They attract tenants to your property for several reasons. Moreover, you will find yourself looking for answers to some important questions, like:
How will it reduce costs?
Every year, the cost of electricity is known to increase by at least 5%. Thus, you get to pay more and more every year. Installing solar panels will make your energy bills decrease dramatically, saving you some good amount of cash each month. As you generate your own electricity, you won’t be paying as much as you did before. In addition, as a homeowner, you will be more likely to save up by taking advantage of a 30% Investment Tax Credit (ITC) for installing solar energy. For example, if the PV cell system that you installed costs you $10k, the solar tax credit for rental property will guarantee you a refund of $3k.
Can you put solar panels on an apartment?
Some people think that solar panels are not worth applying on a small scale, like in an apartment. However, this is not always right. Installing this system will make it more likely to grab tenants to your property and increase your land value. Apart from the fact that it is a renewable energy source, you will be providing tenants the chance to get the amount of electricity that they need and yet pay less.
How will it protect the environment?
Solar energy is a renewable energy that helps protect the environment against many factors. These factors help reduce climate changes, decrease the percentage of immediate pollution, and support a sustainable energy system since it is a renewable energy source. As tenants get attracted to a property, they will be more likely to think of saving money and going green at the same time. According to the studies done, if you decide to go solar, you will minimize your carbon footprint. In other words, it would be as if you planted 3868 trees, recycled 5 tons of waste, and reduced 80.9 tons of burned coal.
Many places around the world are going green now. If you think about it, you will find yourself benefitting in different ways whether you’re an investor or a tenant. Solar energy will save you a relatively good amount of money on your bills, increase your property value and attractiveness, and help you live in a better environment.