Solar Power Purchasing Agreements (PPAs)

What are people’s thoughts on a Solar Power Purchasing Agreement (PPA): where a utility provider installs, owns and maintains a solar system on your roof, and in return provides the tenant discounted electricity (say 8c instead of 28c). You don’t pay a thing (maintenance is also covered) but also neither you nor the tenant benefit from free electricity when producing or FIT selling back to grid. Basically renting your roof space to a solar provider in exchange for discounted electricity. Still, seems like a no-cost way to benefit renters and increase the sustainability credential of a property?

 

So... clearly not much interest around this topic , but for those who come across this thread looking for answers I can provide the following update: It looks like most of the players who were offering residential PPAs have pulled out of that space. It's becoming more common for businesses now, and a few developers are partnering with electricity providers to provide it as an option over entire developments (check out Yolk Property Group in WA), however as at June 2020 I couldn't find a single provider still offering this to individual residential households.

 

IP solar has been discussed many times.
It is a minefield......
Tenant see's panels on the roof and thinks "sweet", but I'm not paying a premium
Landlord hates the idea due to initial outlay and ongoing maintenance costs
Sure this type of system has merit, but how is maintenance done ?
Notify tenants as per tenancy rental agreement ?

Probably much better suited to business and commercial roof's, larger area's and easier install

 

That pretty much sums it up @Stoffo . Though just because it isn’t easy doesn’t mean it isn’t the right thing to be doing.

Unfortunately most (but not all) interventions that produce a better outcome for the environment (and often for tenants) require some capital outlay and increased maintenance. And at present this isn’t comparatively rewarded by tenants in terms of higher rent paid (with the exception of some greener markets/target demographics). Whilst rewards can often come by way of better retention of tenants, greater ability for rent increases, etc, this often doesn’t adequately offset the capital cost (ie the payback periods are still quite long). I believe that the situation is changing and will continue to do so at a more rapid rate, but for now even I often struggle to justify spending on sustainability on purely financial grounds.

So why do it? Because as the developers and owners of housing stock in Australia we are in a unique position to actually affect not only the ecological impact of our cities, but the quality of life of our citizens (present and future).

In short, I think it is our moral obligation. I personally want to look back in 10, 20, 30 years and know that I improved the quality of Australia’s housing stock, not just churned out more **** as cheaply as possible and for the highest possible profits.

Will I make a bit less money in the short term? Probably. Is money all that matters? No, I don’t think so.

Sorry that turned into quite a rant! I could go on but I will spare you all. Definitely keen to continue this conversation with anyone who is Interested though...

 

I think we should get on to @Simon Hampel for a "double like" button (and a few more emoji faces)

What you say @theperthurbanist is so true, in many years to come people will look back and say wow it would have only cost $10k back in 2020
Much like today we look back and think that $1.4m house only sold for $60,000 in 1994 )
If only everyone could look forward enough and spare a few dollars today, rather than being all ME ME ME (& I want NOW ).