Should I Invest in Solar for My Rental Properties?
Aug. 11, 2021
A Landlord’s Guide to Going Solar
As a landlord, you’re probably always on the lookout for new ways to increase the profitability of your rental property, and solar panels are a great way to do just that.
Boston Solar installs solar energy systems for multi-family complexes and other types of rental properties in Massachusetts and can help you and your tenants benefit from a solar installation. We’re the number one Massachusetts-based solar company, completing over 4,500 solar installations.
How Can Landlords Benefit From Solar?
Whether you’re an onsite landlord (you live in one unit and rent out the rest) or an offsite landlord (you rent out all units and live elsewhere) you can benefit from solar panels. Here are some of the main benefits of solar panels for rental properties:
- Reduce or eliminate your own electric bills (if you live on site)
- Help tenants reduce or eliminate their electric bills
- Reduce your operating costs (if you pay your tenant’s electric bills)
- Offset electricity costs in common areas
- Justify higher monthly rent for tenants (if tenants pay their own electric bills)
- Lower your building’s carbon footprint
- Attract more tenants
- Increase the value of your property
- Qualify for tax credits and other solar incentives
How Does Solar Work With a Rental Property?
When you install solar at your rental property, your system will need to be connected to a meter.
If your building only has one electric meter and you cover your tenants’ electricity as part of their rental agreements, you can connect your solar panels to that meter.
If every unit has its own meter and your tenants pay their own electric bills, we will review your situation to determine the best net metering and SMART strategy.
After we review, the connected units will then be able to use electricity from your solar panels, and they’ll also be able to pull electricity from the grid whenever the solar panels are not producing enough electricity.
The utility will however need to replace your existing electric meters with bi-directional meters when you have solar panels installed since electricity will be moving to and from the grid.
Add a Virtual Tenant with Solar
Installing solar panels on your multi-family property is like having another virtual tenant on your roof! From receiving a tax credit on your solar energy installation to solar incentives like net metering and SMART, you could reduce or eliminate electricity bills (for on-site landlords) and earn on-time, monthly incentive payments that’s extra income to invest in your properties.
Understanding Your Solar Financing Options as a Landlord
Buying your solar panel system (rather than leasing it) is the best option for long-term financial benefits. But the upfront cost of a solar installation can be a lot to manage all at once. Thankfully, there are solar financing options available.
With a solar loan, you’ll be able to own solar for $0 down and pay a fixed monthly payment until the loan is paid off. When you finance your solar panels, you are the direct owner and are therefore eligible for all solar incentives, including SMART and the federal solar tax credit.
Want to install solar at your rental property? Start with a free consultation! Call Boston Solar at 617-858-1645 or contact us online to schedule yours.