Would you install solar on an investment property?

So the same set up in a lease as passing on water usage charges

 

I reckon you would have better opportunity with small commercial premieseseses.

I have seen a few places near work (Kotara NSW) have solar put on, and I can only imagine it is the building owner doing it and on-selling to the tenants. Westfield has done some deal and started covering their shopping centres in solar - not sure if they are becoming a power supplier, or if power is just included for tenants.

This is across the road from the Westfield, and the circled building is now covered in panels - it is massive. I think Westfield may even own it, but not sure.


Cheers,
Inertia.

 

As a renter, and property owner, I would/and have considered paying a premium for a property with solar power fitted. I have lived in both, and requested owners fit solar power, its dissapointing that there isn't more stock with solar power. The only reason I haven't fitted to my property is due to planning on buying a PPOR later this year and wanting to fit myself out first.

In regards to owners keeping the power in there name, and keeping the feedback tariff. I have no idea about legality, however I do know one owner that did it. The end result the tenant turned off the solar and no feedback tariffs came in. Pretty easy way to protest the agreement.

 

Any maintenance costs for solar power...? Similar to servicing air conditioners or smoke alarms...? Also what average expectancy is there say for a median cost solar system on an average house?

 

Hi D.T. Isn't this a little contradictory? If solar is marketable, and will make tenants more likely to apply for it, isn't that of benefit to the landlord? Sort of contradicts the first sentence. Cheers for the insight.

 

There is an interesting WA based cryptocurrency called power ledger. It allows landlords the ability to sell excess power to others in a block of units. So in the future I can see a situation where landlords are able to make the most of the roof space they provide.

 

The comparison I've been given by property managers is where water usage is paid by the landlord. This occurs in blocks of units where separate usage meters aren't installed.

It often saves the tenant about $30-$50 per month and is advertised as such. The unit may attract more attention, but people generally are unwilling to pay $30 above the rest of the market.

 

Adding sugar to your pancakes would be desirable. Adding 3kg of sugar to them would not. Just because something has a positive, doesn't mean its a win.

So what I'm saying is, having solar panels is good for finding tenants - but not at the cost of installing them.

 

Thanks for sharing this.
Ok so to clarify. The tenant is getting cheaper electricity because of the system. You are over time recouping your investment in the solar by getting the tarrif feed in. And there is an agreement in place to this effect, the electricity bill being in your name.

 

I see your point. Some others are describing a win-win, where the tenant gets cheaper power and they get the feed in tarrif which pays off the system over time.

 

Looking at my own solar, I suspect the income would struggle to pay off the instillation cost over the useful life of the panels. It might have been different a few years ago when the tariff was 4 times higher.

That said, I'm in Melbourne, in winter (only installed 3 months ago) and there is some shade over some of the panels. It's probably a very different situation for an unencumbered rooftop in Brisbane.

 

If Batter

Thanks for the insights Peter.
If batteries come down in price or evolve, this might change, but wow 4 times the tarrif is a massive drop off. Cruel to think some people invested a fair bit on that basis only for policy to change to that degree.

 

Doesnt happen here since tenants have bills in their name

 

@kinstreet75 I think a lot of the older arrangements are grandfathered. My parents have had solar for years and they said their provider usually pays them, they rarely get a bill.

Mine was installed in April and so far it's covering about 25% of my bill. I do expect to do better in summer though.

I'm also waiting for batteries to get cheaper. The smart batteries these days will charge up during off peak periods then supply at night when the cost of energy is higher.

 

The older arrangements had very very nice feed in tarriffs but the systems were also a lot more expensive so I'm thinking the pay back period is actually quite similar if you put solar on today.
Begrudgingly we put in batteries even though they are still quite expensive as it was the only way the power infrastructure would approve our system as they were worried we would feed back too much power into the grid. At the moment our system is probably supplying 75% of our power. Our battery runs out around 4am and we use grid power until we have enough enough sunlight to sustain our own power usage then the excess gradually recharges the battery over the day.

 

There is a plan in Victoria to use school roof tops across the state to supply the grid.
But like a car, have to look at all the outgoings carefully. I'm not always sold on solar energy, the same way I am not sold on buying an electric car yet. Yet! Depends on a lot of factors.

 

Would it still be beneficial for the house dwellers or the electricity bill payer in NSW considering the Solar Panel installation is no longer subsidized?

 

Sounds like a no brainer installing a system or two on your own rentals especially if they have a good roof. Hopefully one covers the tenants and a second or 3rd for feed in tarrif. Basically making your own solar farms.