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Installing a solar system on a rental property can provide several advantages for property owners. For example, solar PV systems can raise a property's value, while rental buildings can benefit from solar feed-in tariffs by lowering their renters' electricity costs.
Real estate owners should consider the long-term benefits that a solar system might offer, such as rising property values and tenant attraction.
Working with a local expert to find the best renewable energy equipment like solar panels and batteries is important. This ensures the system is high quality and reliable.
Should I install solar on my investment property?
Every property owner wants to make money or earn more profit from their property. It is a common goal for all property owners. Solar panels do more than save energy – they can increase your investment property’s value by showing it’s environmentally friendly. This makes your property more attractive to buyers who value sustainability.
For those with investment properties, solar panels can bring in extra money through the solar feed-in tariff. This means you can sell extra energy back to the utility company, making your investment more profitable. Solar panels also save money by producing clean energy, lowering your property’s running costs.
Tenants today like eco-friendly features, so having solar power can attract responsible tenants and keep your rental income steady. Governments offer tax benefits and incentives for using solar power, adding to your overall profits.
In short, using solar power at home is a smart decision with long-term advantages. It can enhance the appeal of your property and help you stay current with market trends. By embracing solar power you can unlock the full potential of your property investments.
Increasing your property value
When selling a house, owners typically clean and make small changes to increase its appeal and maximise their profit. This can include decluttering, painting, and updating fixtures. These improvements can help the house stand out in a competitive market and attract potential buyers. Ultimately, the goal is to sell the house for the highest possible price.
Instead of this last-minute rush, installing solar panels on your investment property is a much better idea. With over 3 million properties already having solar panels in Australia, more and more people realise the many benefits they provide – especially regarding saving money.
A recent survey found that most people searching for a home prefer one that already has a good solar system. This means if you do not have a solar system, you reduce the appeal of your property.
Momentum Energy estimates a property’s value increases by about $6,000 per kilowatt of a solar energy system. Therefore, if you have a 6kW solar panel system, your return on your property could increase by over $30,000.
This amount can even increase further with the addition of a solar battery. So, if you are interested in your long-term returns increasing through your property value and do not have a solar system already, maybe look into it.
Install solar panels on your investment property and receive the solar feed-in tariff
Solar feed-in tariffs are payments made by your electricity retailer for the excess electricity your solar system generates, which is fed back into the grid. If you have an investment property you rent out, your tenants usually have the electricity account in their name.
This would mean you, the owner, do not get access to the tariff. Installing a large solar system can make your home more appealing to renters. It might also give you the opportunity to increase the rent slightly.
If you own a rental property, it’s important to make small repairs, paint, or upgrade it when tenants move out. This will help maintain the property in good condition. Making these improvements can also attract new tenants and potentially increase the rental income.
Keeping the property well-maintained can also prevent larger, more costly repairs in the future. So it is in the landlord’s interest to have long-term tenants – who stay for 3, 5, or even 10 years.
Achieving success with a solar system and reduced tenant energy bills is a win-win for everyone involved. However, it’s crucial to keep in mind the golden rule: only high-quality solar systems can truly stand the test of time. Choosing low-cost solar options harms the environment and causes problems within a short time frame. Investing in quality solar panel technology is essential to ensure long-term benefits for both the property and its occupants.
