Solar power at rental

Discussion in 'Renovation & Home Improvement' started by Firefly99, 10th Sep, 2020.

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  1. Firefly99

    Firefly99 Well-Known Member

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    24th Jul, 2020
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    Location:
    Qld
    Hi - just wondering what people’s thoughts are about installing solar power at their IPs? I’m just thinking about how small my power bill is with solar compared to what it used to be and feeling a bit guilty that my tenants don’t get this type of benefit. Seems a bit like the ‘rich’ benefit but those who can’t afford to buy a house get left behind....

    Are there any cons to this?

    Do the government subsidy schemes for solar installation apply to IPs?

    Thanks.
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
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    Location:
    Sydney
    Why would you ? You incur hefty depreciable capital costs that cant be recouped in return for them getting free power. Easier to charge more rent including "free" power from the outset but its hard to negotiate a rent increase like that now. And....if it fails guess who wants to be compensated ? The traditional system works - the tenant pays their own power bills - If they want solar they could buy a house but didnt. If they buy green power its their choice. Why invest in solar when you make nothing from it ? Even break even is a waste of investment. Unless you lift rent more than costs its not worth it. So the very question you pose isnt going to work unless you overcharge them.

    Then someone with a Tesla moves in. And wants a car charger installed. And buys a boat - better build them a bigger carport ?
     
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