Why Real Estate Investors Should Look into Solar
There are plenty of reasons for Real Estate investors, such as landlords and property owners to invest in PV systems for their properties.
As a result of low system costs, tax incentives, and low-interest rates there has never been a better time to look into solar.
A good place to start is to know your electric company’s Net Metering policy.
Secondly, look into local incentives for going solar.
One of the best resources you can use is the Database of State Incentives for Renewables & Efficiency for finding what incentives are available in your state.
Why Should Landlords and Property Owners Invest in Solar?
The average increase in property value is between $3 and $4 a watt.
You can utilize the Federal Investment Tax Credit to write off a portion of the total cost of your solar panels.
Additionally, the tax credit can be used for many other energy efficiency upgrades that you make to your property.
Another reason is marketability.
People are becoming more environmentally conscious.
Thus, properties that offer a sustainable, green energy source will be more appealing and fetch a premium.
Do you include electricity in your rent?
Your savings could be substantial over the life of your panels.
However, if your tenants are responsible for the electric bill the savings will be passed along to them.
Nevertheless, it’s a win-win, either way you slice it.
I mean, if you could afford to be environmentally responsible and it makes economical sense, then why not?
How do Landlords and Property Owners go Solar?
Undoubtedly, the most profitable way is to buy your system outright.
Owning your own panels always has the highest ROI.
Subsequently, you can split the cost of the system amongst your tenants, or if you own a rental home, you simply add it to the rent.
Another option is a Solar PPA or a Lease.
You wouldn’t own the system, but you also wouldn’t have any maintenance cost.
However, you could still market your property as having green energy.
In addition, the cost can be split amongst your tenants in the same case as system ownership.
What Are My options for Solar Placement?
Rooftop solar is the most common. Brackets are attached to the roof and then the solar panels are attached to the brackets.
Solar carports or shade structures can be used if you don’t have enough roof space for the amount of electrical offset needed.
Ready to Learn More?
Hirst Solar Consulting will build you a free custom solar design for your property.
We’ll put together a proposal outlining what the system will cost.
More importantly, what it will save and the equity it will add to your investment property.