Install solar panel is a good investment?
Solar is becoming more popular because installing solar panels cost is coming down every year and the technology is becoming handier and more efficient. More property owners are putting money into it.
Even if you are buying a property just for investment, it is a wise decision to install solar panels in the house. It is because you earn money by selling the excess power and reducing the operating cost.
Here are some valid reasons why you should install efficient solar panels on your investment property.
You get tax benefit
Yes, when you put solar panels for rental property or investment property, you get ITC and other annual federal tax benefits. You may also receive incentives at the state level. It is provided when people put solar on commercial, investment, and residential properties.
You get depreciation expense
What does it mean? Rules say that one can claim a 10% reduction in system value every year when there are solar panels installed on the house.
When people buy a good-quality solar system and install it well, it can give service for more than 20 years. It is quite a long period to claim depreciation. When you get it, you make up for the tax payable on the extra income you charge for installing a solar power system on the investment property.
Higher property value
When there are good-quality landlord solar panels installed on the property, it attracts better tenants. It is needless to mention that it raises the bottom line of your property. These tenants are ready to pay higher rent because they get benefited from electricity savings. And you get benefited from additional rent.
In simple terms, this extra money pays back the cost of buying and installing a high-end solar power system.
Saving on utility bills
When you install solar systems on your investment property, you minimize the dependency on public utility. Solar power is more reliable. Moreover, when you have a shared usage of solar and electricity, that results in fewer amounts of electricity bills.
Though there are no federal rebates for installing solar on your investment property, you can get many local and state government rebates. Some solar manufacturers offer special discounts. Thus, the initial investment becomes less expensive.
Do you have an investment property, such as rental and commercial premises? Then it is a good idea to contact a solar power installation company.