This question is truly asked monthly. Feel free to click on the magnifying glass in the upper right and you will hit the search engine limit of discussions. They are a bad deal for most home owners but a truly horrible deal for investment properties where you don’t get the tax credit and instead have to depreciate them until you recapture the depreciation.
Buyers value them at less than new value when you’re flipping/selling, and renters don’t value them at all unless you’re throwing in utilities and still charging “utilities not included” rent. They don’t value paying you for utilities any higher than paying the power company.
I had solar panels on two Flips and it does not appear that the buyers valued the property any higher for it.
As far as a rental goes I’m assuming that the renters would not be able Automatically mentally process the fact that they need to pay a little extra to offset the value That you’re giving them.
Hey Joe, I appreciate that insight. On the rental side of things can you still bill the tenants for their electricity use even if the solar panels are cutting down on what cost you have? I guess essentially could they pay down the solar panels with their electricity payments?
Hey Joe, I appreciate that insight. On the rental side of things can you still bill the tenants for their electricity use even if the solar panels are cutting down on what cost you have? I guess essentially could they pay down the solar panels with their electricity payments?
I’ve never crossed that bridge before so any opinion would simply be my opinion. :-) I think if you did try to get the renter to pay a little extra due to the solar panel adding value then you would need to definitely explain the logic to the renter. You might want to look at the past forms because this topic has been brought up multiple times as well. The overall consensus is that renters and buyers don’t seem to value the solar panels at the property enough to make it worth the expense.
I have solar panels on the first SFH I bought that I rent by the room. When there's only like, 2 people out of 5 living in the house, the actual electric bill is non-existent, but when all 5 rooms are filled, I almost cant tell a difference. now I'm sure there's different kinds of plans, and I don't know how your plan of payments are, but I have a $75 a month payment for the panels (came with the house, didn't have a choice)
I'm just now starting to get the tenants to split the electric bill as I cycle threw tenants, but I will not be charging the $75 solar panel fee because that has nothing to do with them, and I factored that in my expenses when I ran my numbers. So to answer your question, when I only have a couple tenants I seem to like it, but when the house is full It really doesn't seem like its doing much, and seems like more of a hassle.
Solar panels aren’t worth it. Period. Whether it be on your primary, a rental, a flip, a shed, or a bicycle. There’s a reason they haven’t become the norm.
This question is truly asked monthly. Feel free to click on the magnifying glass in the upper right and you will hit the search engine limit of discussions. They are a bad deal for most home owners but a truly horrible deal for investment properties where you don’t get the tax credit and instead have to depreciate them until you recapture the depreciation.
Buyers value them at less than new value when you’re flipping/selling, and renters don’t value them at all unless you’re throwing in utilities and still charging “utilities not included” rent. They don’t value paying you for utilities any higher than paying the power company.
Solar panels aren’t worth it. Period. Whether it be on your primary, a rental, a flip, a shed, or a bicycle. There’s a reason they haven’t become the norm.
My opinion..
I agree with your opinion on the rooftop applications and mobile-solar that works well for Mars rovers but not so much on other places on Earth. But you missed the biggest and most viable application... ground mount utility (or commercial) grade applications that make very good financial sense.
Hey Joe, I appreciate that insight. On the rental side of things can you still bill the tenants for their electricity use even if the solar panels are cutting down on what cost you have? I guess essentially could they pay down the solar panels with their electricity payments?
I’ve never crossed that bridge before so any opinion would simply be my opinion. :-) I think if you did try to get the renter to pay a little extra due to the solar panel adding value then you would need to definitely explain the logic to the renter. You might want to look at the past forms because this topic has been brought up multiple times as well. The overall consensus is that renters and buyers don’t seem to value the solar panels at the property enough to make it worth the expense.
@Aaron thanks for your summary - of the overall consensus. It sounds like it's a bit like putting NEW WINDOWS into a house, and telling the buyer or renter - hey, these will really save you on your heat/cooling bills...so, my house is worth an extra $50 a month because of it...or an extra $5k on the buy.... General consensus on that issue too is - don't put new windows in - if they are broken, replace the glass and move on! Not worth the extra investment!
Solar panels aren’t worth it. Period. Whether it be on your primary, a rental, a flip, a shed, or a bicycle. There’s a reason they haven’t become the norm.
My opinion..
I agree with your opinion on the rooftop applications and mobile-solar that works well for Mars rovers but not so much on other places on Earth. But you missed the biggest and most viable application... ground mount utility (or commercial) grade applications that make very good financial sense.
My opinion.
That’s only applicable if you have the yard to spare, or don’t care if your yard is just solar panels. No thanks.
Solar panels aren’t worth it. Period. Whether it be on your primary, a rental, a flip, a shed, or a bicycle. There’s a reason they haven’t become the norm.
My opinion..
I agree with your opinion on the rooftop applications and mobile-solar that works well for Mars rovers but not so much on other places on Earth. But you missed the biggest and most viable application... ground mount utility (or commercial) grade applications that make very good financial sense.
My opinion.
That’s only applicable if you have the yard to spare, or don’t care if your yard is just solar panels. No thanks.
My comment was about a commercial installation, not residential.
In my experience, the renters don't really see the vaule in paying less for electricity but a higher rental rate to cover the solar panels. It still cost them either way.
I, too, am looking this route via commercial. We have a self storage facility with multiple apartments where we cover the electric (due to certain constraints). We signed a 5-year lock on our kWh rate in 2019 and renewal is coming up soon. At a minimum, we are looking at a kWh rate triple to what we have now. Given that ERCOT in Texas has also passed through fees to the providers, we have already experienced a bump in our bill, but will likely experience a much larger increase come renewal time - IE $350/month to $1,050 (not including pass through costs). This hits the ‘cash flow’. We have space amongst the large roof footprint that we currently have, but have not been able to decipher if we take the hit or if we bite the bullet by going solar for the commercial application. Hopefully more commercial operators within the forums have experience and can share their decisions.