Advantages of solar panels for rental properties
Many people install solar on rental property because they want to improve their value of it. There is an obvious benefit of installing it. You generate electricity and save money by taking rebate. But it is not the only thing you get. There are many other advantages as well.
As the cost of installing solar panel is coming down, more people are installinga solar panels for tenants. It doesn’t matter where the property is located in a costly area or in the region where the average rent is paid.
Your property gets energy efficient
When people want to bring down their energy bill, they try replacing most of their home’s fixtures with energy-efficient light bulbs. They also add a programmable thermostat to bring down energy bills. The energy-efficient lights reduce about 20 to 80 percent of power, but it is not sufficient. The game-changer strategy is installing solar panels and taking the house off the grid partially or fully.
Solar panels reduce the utility bills of your tenant and even return some cash to their pockets. The cost of installing solar panels looks high, but in the long run, it will save substantial money. An average property can save up to $30,000 over 20 to 25 years, the average lifetime of the solar panel system.
Since you get about 30% of the solar system’s total cost as federal income tax credits as the property owner, it is a profitable proposition.
Your property becomes more marketable and valuable
In today’s world, everyone is concerned about curb appeal, and when you install solar panels the property attracts better-paying tenants. They are environmentally conscious people who want to keep their carbon footprint low.
Not just that, installing solar on rental property can raise the value of your property as well. Studies say that homes with solar systems sold at a higher value. Hence, if you ever plan on selling the property, installing a solar system can potentially give you more cash.
You generate monthly income
When you install solar panels for tenants, you can raise the rent a little bit. It will help you offset your expenses for solar panels. Don’t worry, the tenants won’t mind it. The reason is, they know that there will be saving in a long run.
Installation of solar panels guarantees that the rental property will not stay on the market for a longer period despite the increased rent.