Solar Panels for Investment Property

I have a rental property and just wondering would installing solar panels be a better idea than reducing rental for the tenant.


  • +2

    Why would you reduce rent?

    • +3

      Solar panel = increase rent
      No solar panel = increase rent

    • +1

      Tenant requests rent to be reduced but I thought why not keep it the same but save tenants on electricity instead by installing solar. Effectively making rental cheaper while increasing the value of property and making use of tax deductions.

      • -1

        Tenant requests rent to be reduced

        Why? They agreed to the rent price, seems silly unless you are way higher than market.

      • I think the intent is good, although like buying wedding gifts best ask the tenant about the idea first and don't assume they will like or benefit from it.

        If they are not savvy with energy plan, they maybe put on a plan with higher rates to get feed in tarrif. They may be worse off with cost. Also, they have to spent a day at home to allow the installer to come inspect the place and install. They lose out.

        Also the cost of other things such as food and gas are rising. That's maybe where they need the extra money for.

        • Also the cost of other things such as food and gas are rising.

          OP should put in a veggie garden as well.

      • +1

        great idea. do it.

  • +2

    Yes and no, depends on a lot of factors like is your rental single (single phase is 5kw inverter limit usually) or 3 phase for a larger system, the size of the solar unit (inverter, panels etc) and what you want to achieve with having solar for a tenant. Remember the more stuff you include with your rental property then if it fails they will expect it to be replaced and repaired. However, the Vic solar rebate is decent atm so there are savings to be had and could potentially be a draw card for potential renters.

    Again the less u include the less you need to repair or replace.

    • Can you get rebate on investment properties?

      • installing solar panels be a better idea than reducing rental for the tenant.

        Why would you reduce rent?

        Anyways if u are considering solar, what purpose would this have for you as the landlord?

        Solar Victoria

        Rebate eligibility

        Victorian rental providers are eligible to receive a rebate for their rental property if:

        their renters have a combined household income of under $180,000 per year (based on any of the last two year’s taxable income)
        the property is valued at under $3 million and does not already have solar panels (PV) installed
        there has been no prior participation in the Solar Homes program for that address
        a Solar Homes Rental provider-Renter Agreement is signed by the rental provider and all renters
        the property is currently tenanted with a rental agreement in place.

      • yes, there's a scheme that you get the rebate (and STC), the out of pocket is split between tenant and landlord.

  • -1

    If anything installing a solar panel should increase the rent because you're effectively paying for their electricity.

    • +3

      The way I read it, it seems like the OP is contemplating installing solar in lieu of reducing rent.

  • +3

    Just remember if the panels break etc you are up for a rental reduction (ie to cover the cost of increased electricity) to the tenant until it is fixed.

  • Just reading through the posts, I didn't realise that there was a scheme for landlords to put in Solar and get a rebate. Anyone have any feedback on a good Solar retailer who is part of the program in Melbourne?

  • Yip, tax deductible. You win and tenants win.

  • +1

    A rent reduction for the tenant is an immediate saving while a reduction in the electricity bill is a delayed saving.

    The benefit of choosing the latter option is a) the tenant WFH and consume a lot of power while the solar panels are operating at peak performance or b) they run mining rigs.

    The reduction in rent would be the better option for them if they do neither a) nor b).

  • +1

    Are they paying more than market? If not, why not just tell them no, give them notice and get new tenants after their lease expires? It isn't obvious exactly how beneficial solar panels are to prospective tenants so I wouldn't bother as an investment. Unless you're just doing it for the environment.

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