Ladson, SC · Member since 2017 · 53 posts · 22 votes
Hey BP members, I was doing some research on tax advantages to switching solar in South Carolina for rental properties. From what I can see there is both a state tax credit (25% of the total system cost up to $35,000) and federal tax credit (30% with no cap), but am curious what other investors experience has been with having these installed on rental properties. It seems like it could be a viable strategy on to increase cashflow by having renters pay you vs. your local energy provider (i.e. you charge a flat rate per month to renters that covers your financing cost on the panels + a set amount for you to pocket).
Thanks in advance for everyone's thoughts/experiences! Happy Thanksgiving!
I plan on utilizing this strategy on my rentals however I may be biased as I own a sales company that generates leads and appointments for solar companies. Not all roofs and utility companies are created equal and you'll definitely want to to check with the HOA to see if they allow. Look in the neighborhood too and see if other homes have solar. The current tax credits for 2020 are 26% for federal (22% if installed in 2021) and 25% for SC meaning about half system cost paid for by government through dollar for dollar tax credits. PM me, I'd be happy to do a quick analysis of the property for solar and give some indication whether or it's worth pursuing a quote.
Columbia, SC · Member since 2017 · 77 posts · 49 votes
5y
Without running the math, I'd be hesitant to add complication to a property. Easier IMO to just have the tenants pay the electric bill and call it done. Sometimes the juice isn't worth the squeeze. I put solar in that category. JMO.
@Casey Crowe a valid point, thanks for the feedback! Any thoughts on it being a value add when going to exit the property as an attention grabber?
This is SC. Most people don't really care about such things. In fact, I'd wager it would be a detriment to about 50% of the potential buyers. Every time I've looked into them they've been a losing proposition, even with gov't slush money. It's still cheaper to just pay the electric bill, unless you're using an obscene amount of power and have a ton of direct sunlight. The value is really in the novelty for most people. Just like electric cars are great, but they still need power from coal and other dirty sources, and cost so much more than a modest car. It's about the novelty, not the dollar savings.
If you were flipping, and you knew your market well enough to feel like potential buyers would value such a thing, I'd say go for it. But not for a rental, on the chance that they wouldn't value it later on.
I plan on utilizing this strategy on my rentals however I may be biased as I own a sales company that generates leads and appointments for solar companies. Not all roofs and utility companies are created equal and you'll definitely want to to check with the HOA to see if they allow. Look in the neighborhood too and see if other homes have solar. The current tax credits for 2020 are 26% for federal (22% if installed in 2021) and 25% for SC meaning about half system cost paid for by government through dollar for dollar tax credits. PM me, I'd be happy to do a quick analysis of the property for solar and give some indication whether or it's worth pursuing a quote.
Hey BP members, I was doing some research on tax advantages to switching solar in South Carolina for rental properties. From what I can see there is both a state tax credit (25% of the total system cost up to $35,000) and federal tax credit (30% with no cap), but am curious what other investors experience has been with having these installed on rental properties. It seems like it could be a viable strategy on to increase cashflow by having renters pay you vs. your local energy provider (i.e. you charge a flat rate per month to renters that covers your financing cost on the panels + a set amount for you to pocket).
Thanks in advance for everyone's thoughts/experiences! Happy Thanksgiving!