Do you have a rental property? If so, you are probably wondering if solar panels are worth the investment. The answer is yes – these systems can be claimed at EOFY, and they will save you money in the long run.
You can earn money when you install signs on your property. You can claim tax deductions on the purchase of solar power because it is a capital expense and can be claimed over many years. The owner can also claim the rebate to re-export the electricity to the grid to help pay off the system.
How does solar energy work on a rental property?
Electricity bills change when using rooftop photovoltaic systems, with electricity being billed, renewable energy re-exported to the grid, and discounts returned to the party with their name on the bill. This can make things a bit complicated, and the landlord and tenant will have to come to a mutual agreement.
Three scenarios can take place:
- The tenant’s name is on the electric bill, and he pays it as usual, receiving reimbursement.
- The landlord can keep the invoice in his name, pay it and receive the discount, then pass the charges on to the tenant. The owner can either withdraw the savings from the amount owed by the resident, withdraw part of the rebate, or keep the savings for himself (to reimburse the installation of the system).
- The landlord keeps the bill in their name, pays the full amount, keeps the reimbursement, and then adds the cost of electricity to the rent due each week.
If the landlord chooses to keep the invoice in their name, they cannot charge the tenant more than the amount billed by the supplier. They have no obligation to pass the savings on to the resident.
Can tenants install signs on their rental property?
In most cases, this is not a financially viable option. When you move out, the solar system will still be owned by the owner and you will likely lose your pocket. However, that doesn’t mean that you are running out of options for accessing renewables.
There is always the possibility to come to an agreement with the owner. A new system will be an investment, allow them to charge more in rent, and it will pay off over time.
For those who live in units or townhouses, shop around. Many new complexes are being built with panels included, with the benefits being passed on to tenants. Many social housing complexes also include solar power, in exchange for a small rent increase.
If you have further questions, contact your residential rental authority in your state or territory to inquire about your options.
Call us today at 1800 EATTERS and get a fast Quote. You can also email our friendly team for sound advice and without obligation.