Both landlords and tenants benefit from having solar installed, but ultimately the decision to install solar rests with the landlord of the property.
If you are a landlord who is thinking of installing solar, maybe because you want to reap the financial and environmental rewards, or if your tenant has requested solar to be installed – read on!
Benefits for landlords installing solar on rental homes
- The addition of solar may make your property more appealing to prospective tenants. Not only does it add a point of difference, tenants will benefit from reduced energy bills for the term of their lease,
- A solar system may increase your property value and even rental yield. Landlords can consider the price they determine for their rental and consider recovering the installation costs through rent paid for the property. When determining the rent increase, it should be less than what the tenant saves on their energy bills otherwise this negatively impacts the tenant,
- You may be able to tax benefits on your solar install, such as claiming depreciation on the cost of your solar system on your annual tax return.
Solar considerations and responsibilities for landlords
- If you own a detached rental property, such as a house or townhouse – you’ll need a solid roof that gets abundant sunlight that is sizeable and strong enough to support a solar system,
- If your roof space is considered common ground you’ll require approval from your Body Corporate prior to installing the solar system,
- Even if you own your roof space, you should still consider informing your neighbours of your installation as common courtesy as there may be some disruptions whilst the system is being installed,
- Landlords are responsible for solar system installation and maintenance, including organising regular cleaning. It is also important to regularly monitor data to ensure the system is performing optimally, benefiting both you and your tenant,
- Details of any solar system responsibilities including repair and maintenance should be outlined in the tenancy agreement to avoid disputes arising during the tenancy.
If you’re considering installing a solar system at your rental property but unsure as to whether the financial benefits outweigh the initial installation costs, you can use the solar for rentals calculator to help determine whether this is a good decision for you. Alternatively, contact us today! We can work with you to discuss whether your investment property would benefit from solar, quote you costs and potential savings for your tenant, before determining next steps for your installation.