Solar Panels for Rental Homes?

Question

Hello, BP Posters! :)

Does anyone install solar panels onto their rental properties?

My tenants pay for their own utilities, and I own homes in Memphis, TN, but I was wondering if this was a solid strategy for tax benefits and energy conservation or to see if anyone else does this for their rentals.

Basit Siddiqi · Answer

I would not add solar panels to a rental property, especially if the tenant is paying for the utilities.

The value of the home will not go up in pro-ration t o the price you paid for the solar panels.

I.E. if you pay $20,000 for solar panels, the value of the home will not go up by atleast $20,000.

best of luck.

Charles Fayal · Answer

The main cost of solar pannels now is install. So if you can figure out how to reduce costs there with your own labor or something similar the case for solar panels gets much better.

Steve Mol · Answer

Spelling Correction: "There Is an economic case for "doing" solar on rentals.

Steve Mol · Answer

There is an economic case for dong solar on rentals. If you make the investment and install solar onto your rental(s), you would need to enter into a "Purchase Power Agreement" (PPA) with your tenants; But only if your state allows it. You can charge up to but not more than what the local power company rate is in your area. In theory, solar power is cheaper that what the local utility charges so you could generate an (small) income off of your solar investment. If you charge some percentage lower than the local power company, your tenants will get a break and be happier. Of course the propertry value should increase in value at some percentage, maybe not 100% but some. Also there are tax credits available which I think are @ 30%, look at the commercial solar incentive for rentals.

Phil Petite · Answer

Hahaha! I'll let you know if I do!

Jordan Ray · Answer

I definitely would be impressed if you got solar panels though! haha 😂

Phil Petite · Answer

I looked into it a bit, and it is expensive, man!!!

I was wondering if the tax benefits outweighed the upfront cost, but it doesn't appear to be so.

Jordan Ray · Answer

I wouldn't waste my money on that personally. It would destroy my return when it wasnt necessary to do that.

Phil Petite · Answer

Great idea and great info, thanks very much for this post, Steve! :)

Solar Panels for Rental Homes?

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