New Solar installation on a rental

[Stinson McElhinney]

San Diego will go from NEM 2.0 to NEM 3.0 in April.  The new program is much less favorable and current tax credits for Solar have gone from 26% to 30%.  Utility rates continue to climb substantially. Does it make sense to invest in solar for the rental considering the tenants pay utilities?  Can it help offset rent increases?  Does it ultimately improve resale value?  Thanks.

[Bill B.]

It won’t make you money, it might make it harder to sell your property. This question is literally asked monthly if not weekly. (Click on the magnifying glass in upper corner to search previous discussions.)

Ps. In California the payments for extra power created and sent back to the power company will be reduced 75% starting in April. You will have to make 4 extra kilowatts to pay for 1 kilowatt at night. This reminds me of the EV car state credits. (Charging EV’s higher registration to “keep it fair”) They give you a deduction to buy the “save the planet device” and then change the rules after you’ve spent the money.