Cheap Solar Options for Tenants

tunzafun001 on 21/05/2024 - 14:06

Have an eldery tenant. She is finding it tough paying rent etc. Currently $380 per week, but will be $400 in July. I noticed that she uses hardly any water, or power (house has gas).

So was thinking of changing appliances to electric, and getting a solar system. So she can at least be comfortable.

Anyone know if there any good solar deals/ interest free green loans etc around anymore in SA. A lot of deals used to require rent to be <$400 per week to be eligible, ie. I got a split system installed for $699, as I only charge $380 per week,

I proposed adding $20 / week to the rent, and get a solar system installed. Until it's paid off, then drop the $20.

Her electricity + gas is around $700/ quarter. So even if paying $20 per week more, she should still be better off, and she will be able to chuck the heater on etc and not be worried about cost to be comfortable.

Obviously no tax deductions etc for me in getting it installed, but the solar system may make the property more 'rentable' in the future.

But I'm currently off work with zero income (other than the rent). So need to make this as cheap as I can.

Kicking myself as I had an opportunity for a free solar system (albeit only 1.5kw) a few years back.

Anyone seen any great zero interest green loans, subsidised installs etc. Thought about one of the Tesarac (half priced power options), but would get messy if a new tenant didn't want it.

Cheers

Electrical & Electronics Solar Energy System

Comments

  • ThithLord on 21/05/2024 - 14:13

    Is there really no rebates available for you from the Government in SA/Federal?

    • Muzeeb on 21/05/2024 - 14:17

      Rental properties need not apply?

    • moar bargains on 21/05/2024 - 14:24

      STC rebates are federal and usually applied to purchase price of solar pv systems.

    • jv on 21/05/2024 - 14:31

      Is there really no rebates available

      Nah, just land tax…

    • tunzafun001 on 21/05/2024 - 18:20

      STCs, thats about it I think.

      No REPS (state) etc offers I could see.

    • Tommyaka on 22/05/2024 - 20:49
      +1

      Household Energy Upgrades Fund - coming soon to a store near you.

      The HEUF will provide cheap loans (subsidised by the government) to support homes to become more energy efficient (or to reduce amount of energy needed to be drawn from the grid - i.e. solar power systems).

  • moar bargains on 21/05/2024 - 14:32
    +6

    1.5kW system not worth it IMO these days. They were ok back when you could get a high feed in tariff for them, but that's long gone.

    Plenti has zero interest green loans?

    Tesseract seems to have options to buy out the system if you want out after a timeframe, but don't know what T's & C's they would place on that. Likely it would not be in your favour.

    I reckon your best bet would be to just get quotes for a 6.6kW system with cheap panels and inverter and put it on a Plenti zero interest loan. Should cost about $5k. $20/wk extra rent would pay that in ~5 years.

    Recommend you put in a high efficiency split system air con, and she will be able to be comfortable all year cheaper than she is now. Bear in mind though, that the aged pension is only about $500 a week, so 80% of her cash is going to just having a place to sleep, and has $100/week for everything else. So that's going to be the biggest factor in why she's using so little power, water etc.

    Good on you for looking after her!

    • kranix on 21/05/2024 - 16:28
      +2

      Be careful… "zero interest" loans can be a bit of a scam. They generally mark up the price significantly so that your (for example) $5000 system ends up being $7000 in repayments. Nothing is truly free…

      • moar bargains on 21/05/2024 - 17:31

        Yeah, obviously research the T's & C's involved, because as you say no such thing as a free lunch.
        FWIW seems like Plenti has a flat monthly fee for the zero interest loan, rather than interest. A rose by any other name…

      • dominator293 on 21/05/2024 - 19:01
        -1

        Plenti are legit, just not sure about that loan. I have a car loan with them, no issues at all.

    • tunzafun001 on 21/05/2024 - 18:36

      Yeah, I'm looking at 6.6kw systems around $3k - Sunterra (EOFY). Had ours for 5years now, hasn't missed a beat. Still outputting 105% of it's rated output ..my Qcells system on the other hand…fell apart…anyway..

      As for pensioners, yeah it sucks. I'm terrible business wise. Agent today said I could get just over $500/ week now, but I don't know how they are supposed to survive with those numbers. I guess I'm basically donating to her charity! Funny enough she abused me for putting rent up to $400 haha, but they don't really understand that rates / repayments, insurances have doubled in a couple of years. Then their is maintenance costs etc. New hotwater system, carpets and flooring. Bathroom update later next year etc.

      Last year I did indeed make use of the REPS program and got her a new split in the lounge and the bedroom. Rediculously efficient..200watts (less than a 65 inch TV). But she isn't really using them.
      Hence the solar idea. Might even get her some credit.

      Will look at Plenti… cautiously!

  • mrkorrupt on 21/05/2024 - 14:45
    +3

    dont increase the rent bro if they are a good tenant

    • geekcohen on 21/05/2024 - 14:49
      -1

      But, if he adds Solar and is going to save her money, then she might be happy to pay the $20 extra a month if it is going to save her money. It would save her more than $20 a month most likely.

      I saved $200 a month with solar and I still have Gas Stove, Hot Water and Ducted Heating.

      • tunzafun001 on 21/05/2024 - 18:38

        Yeah that's the plan. I don't want to charge anything. But the reality is I will get no benefit, and can't afford it myself right now anyway. But if I can get a no interest loan etc, and we pay it off half each. Then it might work…and the numbers currently indicate she will actually be ahead each month.

  • apple2016 on 21/05/2024 - 15:32
    -1

    So was thinking of changing appliances to electric, and getting a solar system.

    Not a good idea as heating, hot water etc are more needed at night when there is no solar production. Solar without battery will not reduce your power bills drastically.
    Also with every heavy rain etc , there are more and more power outages. Gas is usually stable. at least you can have hot water, food etc.

    • star-ggg on 21/05/2024 - 16:13

      An electric hot water system acts as a battery because it will only heat up water during the day when solar is available then it's kept insulated during the night. This can be easily automated with any new solar system.

      Don't know where you live that rain = power outages. It's definitely not the norm in Australia.

    • JimB on 21/05/2024 - 16:15
      -1

      "Not a good idea as heating, hot water etc are more needed at night when there is no solar production. Solar without battery will not reduce your power bills drastically.
      Also with every heavy rain etc , there are more and more power outages. Gas is usually stable. at least you can have hot water, food etc."

      That is my main gripe about using RCAC for heating. Solar does f-all when I need it for heating.

    • tunzafun001 on 21/05/2024 - 18:51

      @apple2016
      She is home during the day. So could run the AC flat out during the day off solar and pre warm the house (Which is what I do). Plus hotwater off solar. Plus chuck dinner in the oven early etc.

    • Bruceflix on 21/05/2024 - 20:35

      You obviously don't have solar if you think it will not reduce your bills "drastically".

  • pharkurnell on 21/05/2024 - 15:42
    +5

    So she can at least be comfortable.

    You sound like a good landlord. Giving a shit about tennant. Hope it works out. :)

    • tunzafun001 on 21/05/2024 - 18:43
      +3

      I try mate…to be honest, no one else seems to care about the elderly any more. So feel some moral responsibility here.

  • trapper on 21/05/2024 - 16:28

    Obviously no tax deductions etc for me in getting it installed

    Improvements on an investment property should be tax deductible shouldn't it?

    • Nugs on 21/05/2024 - 17:18

      Amortised over 10 years I thought
      .

      • trapper on 21/05/2024 - 18:57

        Amortised over 10 years I thought

        That's still a deduction…

        • Nugs on 22/05/2024 - 08:00

          agreed
          .

    • Stewardo on 21/05/2024 - 18:30

      Is unemployed OP paying tax?

      • tunzafun001 on 21/05/2024 - 18:46

        @Stewardo I'm not actually sure what I'm up for a tax time yet. Currently using my income protection (not sure how that's taxed being an insurance payment) + rental income tax.

    • tunzafun001 on 21/05/2024 - 18:45
      -1

      @trapper Can only use it to offset capital gains (if you sell) as far as I know?

      • trapper on 21/05/2024 - 19:15

        Where did you hear that?

      • Stewardo on 21/05/2024 - 19:21
        +1

        You should speak to an Accountant, the potential new solar system and potentially many other parts of the property could be depreciated.

        • tunzafun001 on 21/05/2024 - 20:43

          Looks like you are right. Looks like it can be depreciated over 20 years, or over 10 years with diminishing method (I thinks that's how it works)?

          Source: https://www.depreciationrates.net.au/solar

          So potential to get approx a third back (tax rate) over 20 years.

  • JHS4170 on 21/05/2024 - 16:40
    +2

    I'd be concerned that the electricity savings for your tenant wouldn't cover the extra $20/week you're proposing. I would be doing the following before investing in solar, and switching appliances to electric.

    For zero cost to you, I would first check she is on the lowest plans available using https://www.energymadeeasy.gov.au/

    Also check if she is entitled to any concessions/rebates and ensure they are being applied to existing accounts:
    https://www.sa.gov.au/topics/care-and-support/concessions/ho…

    You might find that you are able to make savings without costing you a cent.

    If she is paying a daily supply for both electricity and gas, you could consider changing gas out to bottled gas which works out to be cheaper (at least in QLD). Daily supply is easily $1/day, so even if she used zero energy her bills could be $90/qtr each.

    • tunzafun001 on 21/05/2024 - 19:01

      I do agree. If $ savings is the goal, then change to AGL for $300, then Origin/Simply or whoever a month later for $200.. repeat. Mid month change to an EV or similar plan (With free power for a couple of hours a day). Run everything in those couple of hours.. way better return than a 5C/kWh feed in from solar ..

      …But she won't have a clue what I'm talking about. So not really an optional approach for elderly tenant Technically could still do as above with solar if she did work it out.

      Will look at bottled gas though. Is it viable with current gas stove and instantaneous hot water?
      There is a gas heater, but the split would be cheaper to run.

  • avoidfullprice on 21/05/2024 - 17:43

    IMO $80 months of saving will require higher size solar electricity system, probably 5kw or larger.

    • tunzafun001 on 21/05/2024 - 18:55

      We have a 5kw system. All electric house and car. Still export 25kwh + per day on average. Savings for us is in the $500 a month range. Extortionate 53c/kWh in SA.

      • avoidfullprice on 21/05/2024 - 21:21

        But that’s incomparable with your tenant usage.

        Is your tenant going to get same feed in tarrif rate?

        • tunzafun001 on 21/05/2024 - 22:28

          Yep, same feed in…which is only 6 - 10 cents/ kWh these days. So maybe
          More about offsetting the 50 cents per kWh. But the feed in will pay for supply charges (what a rort a $1 per day supply charge is btw).

  • damnable on 22/05/2024 - 08:05
    +1

    I applaud you thinking of your tenant, however it doesn't sound you are certain that this arrangement will leave you tenant better off. At least there isn't enough information presented here to be sure.

  • H4nd0 on 22/05/2024 - 08:59
    +4

    You are incorrect in your assertion that the installation of solar is not tax deductible. As the owner of the house deriving rent from it, it's classified as capital works/improvements which can be depreciated. Check with your accountant to ensure it's included in the depreciation schedule. As others have said, don't waste your time with a small system. You need a minimum of a 6.66KW system (1.33 oversize multiplier) with a 5KW inverter (assuming a single-phase circuit to the house). Should be around $5500 installed after STC rebate (depends on state). Contact one of the national installers for a quote (e.g. https://solarharbour.com.au/). They can often provide finance. There might also be other installation costs (e.g. relocation and upgrade of metre box if it's old which can get expensive). Also, make sure you have plenty of spare roof tiles as they always get broken during installation. Then you need to chase a power plan that includes a FiT (e.g. Red Energy). Gas is a waste of time and is being phased out in other states (e.g. https://www.planning.vic.gov.au/guides-and-resources/strateg…). There was other talk in the thread about hot water. You only heat water during the day. So get a simple jacketed hot water system (e.g. Rheem). Heat pumps (IMHO) are expensive, have poor warranties and regularly go wrong. When they install the circuit for the tank, install a timer to ensure heating only occurs during peak equivalent generation hours (e.g. 10AM-2PM) each day. Also, replace the default heating element with one-half the size. I've got a 315L tank here, on a timer, with a 1800W element, heating 4 hours a day. Not run out of hot water yet (touch wood). Also, look at the overall consumption in the house. I use PowerPal to track that (https://www.powerpal.net/). Then weed out and replace inefficient devices (e.g. fridges, stoves, lights etc.). Look into better insulation (e.g. bats, draft excluders). Haier (for example) has new highly efficient fridges. The point is that if you want to reduce your overall electricity bill then you need to follow a blended approach (e.g. solar + FiT + efficient devices + scheduled device use). Hope that helps.

    • tunzafun001 on 23/05/2024 - 00:23

      Cheers for the detailed reply. Good point re board upgrade and costs. That would very likely be needed.
      As for tiles, every house around here is getting bulldozed for subdivision, so will ask if I can grab some (good tip). They broke 20 cement tiles doing my solar install in one day..which is amazing as I did a heap of work on the roof and only broke 1. But they had the wrong footwear and step on the lips.

    • kiitos on 23/05/2024 - 14:47

      Good info, thank you

  • screensaver on 23/05/2024 - 02:19

    Shell get an increase in rent assistance in September, its going up to $207 per fortnight, about $20 more

    • tunzafun001 on 23/05/2024 - 10:32

      Cheers. I wonder how many in Australia only had their rent go up $20 a week. Not many. Agent said I could put mine up over $100/ week. I won't, but that's the market rate.

      • screensaver on 23/05/2024 - 20:56

        That’s fortnight, not week

        • tunzafun001 on 23/05/2024 - 21:46

          Oh geez…guess we are lucky getting anything.

          • screensaver on 24/05/2024 - 02:39

            @tunzafun001: I am about to hit pension age. Also nearly one year since last rent rise. So I guess I wont see the increase, also the september cpi increase, My current rent 340. But I do want to stay, so will pay any increase, hope its not too much

  • screensaver on 23/05/2024 - 02:29

    Make sure she has put in her concession details to energy company for rebate. Look at the bill to see what rate she is on and check seniors card website for better rate

  • screensaver on 23/05/2024 - 02:44

    I had a look at SA Seniors Card website, there is only Engie to choose from, here is the quote https://engie.com.au/residential/product/engie-seniors?fuel_…

    • tunzafun001 on 23/05/2024 - 10:30

      Thanks for this. But it grinds my gears that they make it so hard to just find the "rates".
      So I'll take it at face value they are 10% off the reference price, with a 5c feed in.
      Whereas Origin are 17% off (concession), 6c feed in and a $200 sign up credit.
      Thanks again.

  • Gros21 on 24/05/2024 - 15:36

    I put 6.6kw on my rentals as i had a quiet year. Was a cheap euro solar/ true value solar mob with an upgraded inveterer.

    Zero complaints

    • tunzafun001 on 24/05/2024 - 15:52

      Yeah, I think I'll go with Sunterra / Go Solar.

      Looks like 6.6kw for $3100 (10 yr warranty on inverter, 25yr on panels).

      Growatt inverters are good if u add your own PC cooling fans (powered by a $10 eBay solar panel). Without, they get too hot and get a bad rap.

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