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A Landlord’s Guide to Solar

A Landlord’s Guide to Solar

As a landlord your property is your investment. Installing a solar system not only benefits your tenant and the planet but can benefit you too.

Sustainability

Sustainability is making decisions that meet our needs and allow future generations to meet their needs.

Solar power is completely renewable and does not drain the planet of its natural resources.

Choosing to go green means that future generations can live with all the benefits of industrial society without the harm caused by burning hydrocarbons.

Going solar also aligns with the values of many tenants who prioritise sustainability.

Make the green decision that benefits both the environment and your own pocket.

Property Value

Getting solar for your rental property increases property value. Adding solar to your rental property will increase your investment return.

When considering the cost of installing a residential solar system, the benefits are not necessarily obvious. Some benefits include:

  • Higher rental value: Tenants will pay higher rent for low electricity bills.
  • Feed-in Tariff: You can be paid for solar export to the grid if you handle electricity bills.

Eco-Upgrades

Eco-upgrades are becoming increasingly popular as they not only improve the value of your home or investment property but also offer potential tax benefits. 

These upgrades focus on enhancing the environmental sustainability of the property, such as installing solar panels with a battery, ceiling fans, insulation, window glazing, water tanks, and car chargers for electric vehicles.

By making these improvements, you can attract buyers and renters who prioritise sustainability, leading to higher sale prices and rental demand.

The Australian government offers several tax benefits to landlords who install solar panels on their rental properties. These deductions can help offset the initial costs of purchasing and installing the solar system, making it a financially savvy choice for landlords.

By taking advantage of these tax deductions, landlords can contribute to a greener future while also reaping the financial benefits of the investment.

Tips

When considering buying solar for a rental property in Australia, here are some tips for landlords:

Assess the Solar Potential: 

Check the property’s location, orientation, and shading to determine its solar potential. North facing panels will provide the best production. East and west facing panels will still provide 80% efficiency, and south facing panels will still provide 60-70% efficiency.

Evaluate Return on Investment: 

Determine the payback period for your investment by comparing the annual savings on electricity bills with the upfront costs. The average return on investment on an appropriately sized solar system is between 3 to 5 years. With a battery installed, the average return on investment is between 6 to 8 years.

Consider Tenant Benefits: 

Solar panels can help attract eco-conscious tenants and potentially increase rental value. Communicate the benefits of solar energy to tenants, including reduced electricity bills and a smaller carbon footprint.

Engage with Reputable Solar Installers: 

Research and engage with reputable solar installers who have experience with rental properties. Request multiple quotes and compare their expertise, warranties, and customer reviews.

The best bet when buying solar is to invest in a quality system installed by a local company.

Choose a local company with mostly 5-star ratings. A quality system will cost you more upfront but will bring you a great return on investment that lasts all the years you live in that home.

Monitor and Maintain the System: 

Regularly monitor the solar system’s performance and address any maintenance issues promptly. This ensures optimal energy generation and tenant satisfaction.

 

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