Is It Worth Installing Solar on a Rental Property?
As a landlord, you are likely on the lookout for new ways to increase the profitability of your rental property, and solar panels are a great way to do it!
It can be incredibly worth it to install solar panels on a rental property, and our team at Solar Bear Orlando explains why and how to do it! Ready? Let’s go!
How Can Rental Properties Benefit from Going Solar?
Installing solar panels on a rental property can certainly attract better tenants and can help save on utility expenses in the long run.
Here are some of the main benefits of going solar:
- Help tenants reduce or eliminate their eclectic bills (What a perk!)
- Reduce operating costs if your tenant’s electricity is included in their rental payment
- Offset electricity costs in common areas
- Justify higher monthly rent for tenants
- Lower your rental’s carbon footprint
- Attract higher quality tenants
- Increase the value of your property
- Quality for solar incentives and tax credits
Let’s discuss some of these further!
Tax Credits
If you have a solar system on your investment property, you may qualify for the Investment Tax Credit or ITC and other federal or state tax benefits
Increase Property Value
A great benefit of having solar panels on a rental or investment property is that they increase the overall property value. You may find that you can charge higher rent or find better tenants by having an energy-efficient feature at your rental. In turn, your tenants will benefit as they may see a dramatic decrease in their energy bills. It’s a win-win!
Being able to charge higher rent allows you to financially recover from the expense of installing a solar system. If you sell the rental property later, the solar system will increase its sale price and make it more attractive to potential buyers.
Energy Efficiency
It is amazing to be independent of public utilities. Not only is solar more reliable and better for the environment, but it can also amount to greater savings each year. This is especially true in states like Florida where we get a lot of sun exposure!
Environmentally Friendly
Besides the financial benefits, a solar panel system can decrease our dependence on fossil fuels for energy. Using solar power significantly decreases your carbon footprint and helps the environment thrive for future generations.
Is Your Rental Property Suitable for Solar Panels?
As a property owner, you must consider if your property is right for solar before beginning installation. Most properties in Florida are suitable due to the amount of sunlight we receive here in the Sunshine State, but there are still many factors to consider.
To gain the most benefit from a solar system, the solar panels should be installed on a roof that faces south at a 30-degree angle. Don’t worry, roofs that face east or west at a different angle will still generate sufficient energy! If you have a flat roof, we will have to create the most efficient angle with special mounting brackets.
For properties that face north or have trees and structures that surround them, it can be difficult to generate solar power.
The Costs of Installing Solar on a Rental Property
Keep in mind that before you can reap all the benefits of solar, there are some maintenance costs associated with solar panels.
- You will have to pay a monthly connection fee to your utility company which can be around $20-40 a month
- If you finance your solar panels, then the monthly payment will need to be factored into the rent of your property. As stated above, you can justify higher rent with solar panels, and once they are paid off you will receive a substantial cash flow from your rental property.
Install Solar at Your Investment Property
Take advantage of the solar revolution and install solar panels at your rental or investment property with Solar Bear Orlando today! You’ll gain energy independence, and higher property values, plus you can net higher rent payments from your tenants. Yes!
Choose to go solar with Florida’s #1 solar installation company, Solar Bear Orlando! Give us a call for a solar consultation today; (727) 471-7442!
