What to tell your landlord if they don’t want to invest in solar

How to convince your landlord to invest in solar

This post applies to both homeowners and commercial properties:

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Do you rent a property that you wish had a solar energy system installed?

You’re not alone.

Solar energy system installations are absolutely booming and 2018 saw a record number of solar panels and small solar system energy generation across the country. 2019 is expected to be even stronger thanks to many states implementing incentives and rebates for installing solar energy systems to homes and commercial properties.

But, what about renters? 

Renters of residential properties are eligible for some incentives, such as the Victorian 50% solar rebate that launched towards the end of 2018. Renters need to contribute 25% through a rent levy, spread across 4 years. The remaining cost is paid by the landlord and the government rebate.

Unfortunately, commercial tenants don’t qualify for this rebate, yet – but there are still huge benefits to a landlord’s bottom line when they invest in solar for their commercial leased property or properties.

The snag?

You need your landlord’s approval – and that can often be easier said than done. Sometimes it can be a bit a of a hurdle to convince a landlord to fork out the initial up-front investment costs for a solar energy system on a property they don’t live in, that’s already rented.

This is feedback we here very often from customers that rent in both residential and commercial properties:

“I’d love solar for my home (or business), but my landlord won’t agree to it”.

As the bill-payer there are many ways that you would personally benefit from living or working in a property with a solar energy system, like lower energy costs, helping the environment and protecting your home or business from energy blackouts in peak periods. But, we thought we’d make a helpful list of reasons why your landlord would also benefit from investing in a solar energy system for their rental property.

  1. Offering long term benefits on properties (like solar) can be a long-term strategy for enticing tenants to remain in those properties for longer terms.
  2. Increased tenant satisfaction – there’s no need to stop at solar; upgrade to LED, install double glazing, quality insulation and other energy efficient upgrades. A property with higher efficiencies is more comfortable to live or work in, will reduce energy costs and will entice tenants to stay.
  3. Solar energy systems can increase the value of a property and according to “Three-quarters of renters said they would pay additional rent to live in a property with solar energy”
  4. With incentives like the Victorian solar rebate landlords don’t have to cover the full cost of the installation and can share the cost with the tenant and the government, so now is absolutely the best time to take advantage. “For a $4,000 panel, for example, [the state government] will cover half, the landlord will invest $1,000 over time, and renters will pay a monthly levy totalling $250 per year for four years. The installation of solar panels will save renters up to $890 on their power bills every year, while landlords will benefit by getting panels at low cost.” (source)

Why landlords should invest in solar for their tenants:

If you some help to convince your landlord to make the initial investment on a solar energy system, we’re happy to help. But here are your basic reasons:

  1. Longer leases
  2. Happy tenants
  3. Subsidised help from the Victorian government (for residential properties)
  4. Increased value in your property
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