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Electricity - IP with solar panels

Discussion in 'Property Management' started by patience, 29th Jun, 2015.

  1. patience

    patience Member

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    Brisbane
    Probably a silly/simple question but one which i am not sure what the answer is.

    If you buy an IP which has solar panels already installed and you then proceed to rent the property out, what happens in regards to property bills? Does the tenant pay an electricity bill as usual and you then get given credit by the electricity company?

    Cheers
     
    MJS1034 likes this.
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    NSW
    No, tenant as billpayer gets the credit (in NSW anyway, suspect the same applies in Qld).
     
  3. swanqueen

    swanqueen Well-Known Member

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    Melbourne
    Yep, tenant gets the credit.

    Having solar panels can make it easier to rent out and may also net you a higher rent, if that's what you're leaning towards.
     
  4. Pistonbroke

    Pistonbroke Well-Known Member

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    Do you hold a licence to resell power? If so, negotiate a wholesale supply contract with the energy provider and onsell the power to the tenant.
     
  5. Nikoletta

    Nikoletta Member

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    It may depend on the state but in the ACT I mainly have had arrangements where the tenants are entitled to the benefits, it certainly makes the rental more attractive, however, in one particular case the owners did not want to pass on the credits. A special clause was required to be endorsed by ACAT and included in the tenancy agreement.
     
  6. patience

    patience Member

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    Pistonbroke - no i do not have a license. How would you go about obtaining one and is it a hard process?

    How much saving does one get per 1kW solar panel per year in dollar terms? Would it be unreasonable to add this entire saving onto the rental bill of the tenant?
     
  7. Beau-lea Miller

    Beau-lea Miller New Member

    Joined:
    1st Jul, 2015
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    Location:
    Springfield, Ipswich, Queensland
    Hi Patience,
    In Qld you actually have a couple options.
    1- put the account in your name, charge the tenant 100% of the usage and service charge and you gain the benifit of the rebate (if you can get one through a provider that makes it worth it ie. a good rebate seeing as though you wernt the original owner the rebates can be low compared with the hassle)
    what you then do is pay the bill, then send the bill to the PM to invoice the tenant giving them 30 days to reimburse
    Tenant then still gets the benefit during the day because if they are using electricity while the solar is generating power then they are not being charged this usage but your not gaining the power back into the grid.
    2- tenant has the account in their name and gets full benefit of the solar, you only get the peace of mind that your not having to pay their bills and await reimbursement!

    Hope this helps if your in QLD .
    Beau