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With the increase in demand for renewable energy and sustainable living, solar panel installations have become a smart investment for landlords. Not only do solar panels offer financial benefits, but they also contribute to a greener future.
In this guest article, we will explore the reasons why installing solar panels in rental properties is a wise choice for landlords, highlighting the cost savings, increased property value, and environmental advantages they bring.
Are Solar Panels Right for Rental Properties?
More increasingly, renters are looking for ways to save as much money as possible, and a home offers a lot of savings opportunities. Equally, for a landlord there is money to be saved and, even made, through a solar panel system. Here are some of the main benefits:
1. Cost Savings On Electricity Bills
One of the primary advantages of solar panels is the significant cost savings on electricity bills. By harnessing the power of the sun, rental properties can generate clean and renewable energy, reducing or even eliminating dependence on grid electricity.
This can be a great benefit if your property is still waiting for tenants, as you will see less money spent running an empty household. However, with the option to save money on energy bills, solar panels will make your property hugely desirable to renters. Meaning your space won’t stay empty for long!
2. Increased Property Value
Solar panels enhance the appeal of any property, so rental properties equipped with solar panels have a competitive edge in the market. They will attract environmentally-conscious tenants and potentially command higher rental rates. Moreover, solar panel installations contribute to the overall property value, making it a smart long-term investment.
3. Additional Income Potential
Depending on how well your solar panels operate, and the amount of energy they produce, you may be able to sell any excess electricity that’s not needed. Through varying incentives, you can potentially sell it to the National Grid or utility companies.
This can provide landlords with an additional revenue stream and some schemes, such as the Smart Export Guarantee (SEG), will provide return on many renewable sources, including wind turbines.
4. Future-proofing Against Costs
As energy costs continue to rise, landlords with solar panels are better protected from these increases. Producing your own electricity from the sun, means you are less affected by the utility companies and any unexpected price rises.
5. Environmental Sustainability
Solar panels can significantly reduce your properties’ greenhouse gas emissions and help to tackle climate change. Not only is this great for the planet, but landlords who prioritise renewable energy, and sustainable features, often attract responsible and eco-friendly tenants who are willing to pay a premium for greener living spaces.
6. Equipment Lifespan
Solar panels are durable and have a long lifespan, typically ranging from 25 to 30 years or more. This longevity ensures that landlords can enjoy the benefits of solar energy for an extended period without significant maintenance or replacement costs.
Things to Know Before Installing Solar Panels
Whether your property is a residential building, commercial space or a multi-unit complex, solar panels can be installed on just about any property. They can be large, or small, systems and can be fully specified to the needs of each building. There are, however, a lot of things to consider before you make a decision.
Assessing the Feasibility of Solar Panel Installation
Before proceeding with solar panel installations, landlords should assess the feasibility of their rental properties. Factors such as roof condition, orientation, and shading need to be considered. Consulting with solar panel experts or contractors can provide valuable insights into the best options.
Understanding the Financial Aspects
While the upfront costs of solar panel installations can seem daunting, there are various financing options available to landlords. One of these includes the government incentive, ECO4, which could help you to install solar panels for free, or partially funded.
It’s essential to research and understand the financial options open to you, to make an informed decision and maximise the return on your investment.
Choosing the Right Solar Panel System
Selecting the right solar panel system is key to ensure optimal energy production and durability. Different types of solar panel systems, such as monocrystalline, polycrystalline, and thin-film, have varying efficiency and suitability for rental properties. Landlords should consider factors such as energy production, warranty, and long-term reliability when making their choice.
Solar Panel Costs and Maintenance
Investing in solar panels offers landlords the opportunity to reduce their carbon footprint and potentially save on energy costs in the long run. However, it’s essential to understand the costs involved in installing and maintaining solar panels.
Installation Costs
The cost of installing solar panels can vary depending on several factors, such as the size of the installation, the type of panels chosen, and the complexity of the installation process.
The average cost of a 4 kilowatt solar panel system in the UK is around £6,000. This cost will vary depending on the size of system you need. A standard 250 Watt solar panel costs between £400 – £500, with installation labour ranging from £300 – £500 per day.
The UK government’s ECO4 scheme can give you up to £14,000 towards home improvements, including solar panels, if you meet the right criteria. There is also 0% VAT in effect for solar panel purchases over the next five years, meaning you’ll save a significant amount on buying a solar panel system right now.
To get the most accurate idea of costs, you should consult a professional installer, who can advise you on the right size of the system you need for your energy demands. They can also give you the best advice on all aspects of the installation so you can get the most from your solar panels.
Maintenance Costs
To ensure the optimal performance of solar panel systems, regular maintenance and monitoring are necessary. You should schedule routine inspections, cleanings, and performance checks to address any issues promptly.
Effective communication with tenants is also essential. Educating your tenants about the functionality and advantages of solar panels, such as reduced electricity costs and environmental benefits can help them to maximise their use of the system.
Other things that a landlord should consider include checking insurance policies, to ensure that a new solar panel system will be adequately covered. It is advisable to consult with insurance providers to understand the coverage options available and any specific requirements related to solar panels.
Landlords should also keep thorough documentation of the solar panel installation, including warranties, service contracts, and maintenance records. These documents are crucial for tracking the system’s performance, ensuring compliance with warranties, and providing evidence of regular maintenance and upkeep.
Conclusion
Installing solar panels in rental properties is a smart investment for any homeowner, but for landlords they can bring numerous benefits. Not only do solar panels offer cost savings on electricity bills, but they also increase property value and marketability. Landlords can also tap into additional income through schemes such as the SEG.
Beyond the financial advantages, solar panels demonstrate a commitment to environmental sustainability. By harnessing clean and renewable energy, landlords contribute to reducing greenhouse gas emissions and creating a greener future. This aligns with the growing demand for eco-friendly living spaces, attracting responsible tenants who appreciate the value of sustainable living.
Installing solar panels in rental properties is a forward-thinking choice for landlords. It not only provides financial savings and environmental benefits but also enhances the overall value and marketability of the property. By embracing solar energy, landlords can pave the way for a sustainable and energy-efficient future while reaping the rewards of a wise long-term investment.
