Solar on Renters and Landlords – How It Works
If you ask a renter or a landlord if it makes financial sense to install solar panels on the building, 99 out of 100 will tell you “No, of course not.” This is just the way public perception is at the moment.We’re going to change all that.
So what’s the problem… and why isn’t anyone going solar on renters/landlords?
Well, let’s say you own a building, and your tenant pays for the power.
The landlord says: “Why would I install solar? I don’t pay for power, my tenant does! I have nothing to gain!”
The renter says: “I’m not going to pay tens of thousands of dollars to improve someone else’s property!”
Both of those make complete sense, right?
So here’s the solution… Why can’t the landlord recoup his or her investment in solar energy from then tenant who is typically paying for the electricity? Why can’t you work something into the lease so that the tenant gets stabilized, clean energy instead of dirty grid power for the same price or even cheaper, and the landlord gets a bump in rent to pay for his or her system that they just bought, which, once paid for, becomes a solid long-term investment.
YOU CAN. The logistics are somewhat tricky and differ state-by-state, but the point is that it’s possible, and it pencils out just the same money-wise (actually, because of advanced depreciation, it can look even better than a homeowner). Solar installers aren’t pushing this because it’s complicated and most have their hands full, but someone needs to pave the way and open up that market.
The reason this market doesn’t exist is because it’s placed in the landlords hands to research the logistics of the agreement between them and the tenant.
By Dave Llorens