Why You Should Install Solar Panels on Your Investment Property
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Do you own a rental property? If so, you may be debating whether solar panels are worth the cost to install. The short answer is yes; these systems can be claimed at EOFY and ultimately save you money.

When you instal solar panels on your property, you can profit financially. Solar energy purchases are eligible for tax deductions because they qualify as capital expenditures and can be spread over several years. To assist in paying off the system, the landlord may also be eligible for a rebate for electricity exports back to the grid.

How does solar energy operate on a rental property?

When rooftop solar power systems are used, electricity bills can earn credits because power is exported back to the grid. Solar rebates are provided to the person whose name is on the electricity bill. This can make things complicated, and both the landlord and the tenant will need to strike an agreement.

There are three possible outcomes:

1. The electricity bill is in the tenant's name, and they pay it as usual while getting the rebate.
2. The owner may keep the bill in their name, pay it, and then transfer the charges to the tenant after receiving the rebate. The homeowner has three options: deduct the savings from the amount the resident owes, deduct a portion of the rebate, or keep the savings for themselves (to pay off the system's installation).
3. The landlord retains ownership of the bill, pays it in full, maintains the rebate, and then adds the cost of energy to the weekly rent due.

The owner is not allowed to charge the tenant more than what the supplier has charged if they choose to maintain the account in their name. The resident is not required to receive savings from them.

Can renters add solar panels to their rented homes?

This is typically not a financially sound choice. The solar system will remain the owner's property after leaving, and you'll probably owe money. But that doesn't imply you have no other choices for accessing renewable energy.

There is always the chance to work out a deal with the owner. A new system will need investment to charge higher rent and eventually pay for itself.

Shop around whether you live in a unit or a townhouse. The advantages of using panels in constructing many new complexes are passed on to the tenants. Solar is also being installed in many public housing developments in exchange for a little rent increase.

To learn more about your options, speak with the residential tenancy authority in your state or territory if you have any additional questions.

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