Installing solar panels is a smart advantage for homeowners and commercial properties alike, but the advantages of solar to landlords hasn’t been a big topic of discussion yet. The good news is that between tax incentives and appeal, installing solar panels on a rental property is a strategic move that can help your bottom line and keep your rental property as a steady source of income in the coming years.
Appeal to Renters
The benefits of solar energy are becoming common knowledge more so every day, and many in the biggest renting demographics are interested in living somewhere that has a supply of clean energy. In addition to wanting clean energy, renters will gravitate toward properties with solar panels due to the decreased electricity bill — especially as electricity prices continue to rise.
If you choose to install a solar battery in addition to the panel array, you’re providing a much sought-after ability to keep the lights on during power outages. As wildfires, storms, and other unpredictable weather are on the rise, being able to power your rental while the grid is down is a huge advantage in attracting and retaining renters.
Reduced Property Utilities
It’s not just renters that benefit from lower utilities, the savings ultimately pass to you. With net metering available in California, you can divert the excess energy your solar panels produce back to the grid in exchange for money. This results in reduced bills for you, too.
Tax Incentives
Solar panels provide another element of savings beyond utilities. While you can’t claim the 30% investment tax credit for a rental property you don’t live in, you can claim a depreciation expense to avoid shelling out any more money than you have to. Installing a solar energy system allows you to claim a 10% reduction in the value of the system each year.
If you live in the rental for at least part of the year, you can choose to claim the 30% credit instead. Either way, the government is partially subsidizing the decision to install solar panels, and some tax prep help can ensure you get the most out of these incentives.
Do More With Simply Solar
If you’re looking for a competitive edge in the California rental market, adding a solar energy system to your property could be the ticket to attracting more reliable renters. Simply Solar is here to guide you through the process with custom-designed systems and exceptional customer service.
Call us today at (707) 285-7037 to find out if your property is a good candidate for a custom solar array.
