Skip to Content

Get a FREE assessment of your rental property. Start here!

Get a FREE assessment of your rental property. Start here!

Should I Put Solar Panels on my Pflugerville Rental?

Solar Panels on Pflugerville Rental HomeSolar panels can be a great way for property owners to save on electricity bills. But are solar panels right for single-family rental properties? Even though utility costs are pertinent to the question, it must also be understood that there are other things to consider for the installation. While it is a significant factor, the initial cost is just one of many factors. Others include location and property values. Another factor is the type you’re going to choose: a single rooftop or a community solar system? One more thing; do the math ahead of time. Make sure you have an approximation of how long it will take to get back the cost of your investment.

 

Cost of Solar

If you invest in these solar system panels, know that it will cost you lots of money. Depending on how you structure your initial cost of installation, the result could potentially bear great benefits for you in the future. While solar panels and the other required components have gone down in price in recent years, installing an entirely new rooftop solar system will still run into the thousands.

Some solar companies offer financing or payment plans, allowing property owners to divide the cost of the installation over months or even years. Also, in some states, you can qualify for tax deductions which help settle the cost of installation. Nonetheless, always factor the costs into your cash flows before committing.

 

Location

While solar panels will work anywhere you place them, other placements make more sense in maximizing solar power. For example, sunny southern states will allow for greater efficiency and higher production rates for solar energy, while in areas with more cloudy days, that rate will likely be reduced. Additionally, if your rental house is shaded by nearby trees almost all the time, that will interfere in the solar system’s ability to generate high levels of electricity.

 

Effect on Property Values

Installing solar panels on your rental property will affect your property values. Other factors help determine the value of your property — one, for example, is the location. Solar panels are simply in higher demand in some places, in which case your property values – and your property’s appeal – may increase. Regardless, higher property values may result in higher property taxes; hence, proceed with great thought and care when making a decision.

 

Time to Recoup Costs

Generally, it takes a rooftop solar system about six to eight years to recoup the cost of installation. That already accounts for the savings you get on your electricity bill. And the number of years will be affected by other variables too, like your property’s location and how much sun your solar panels get every day. For homes in cloudy areas or with shaded roofs, ten years is a minimum before you can notice any measurable return on your investment.

 

Solar System Options

You can choose from other options if a rooftop solar system isn’t what you want. In some places, property owners can decide to join a community solar program. Community solar offers rental property owners a chance to reduce utility bills while also contributing to clean energy initiatives in their area. Moreover, panels or other equipment won’t need to be installed anymore on the property, making the cost of investment significantly lower. Although, there is a downside — community solar is not offered in all areas. So, when you do find one, best to immediately check availability.

Different rental properties come with different expectations and needs. The decision to install solar panels will solely be based on what you want. It is your property investment, after all. Armed with the right information and a solid understanding of your options, you can make that decision with confidence.

If you found this article helpful, imagine what Real Property Management Bluebonnet could do for you as a property manager! Contact us online or call at 512-850-7084 for more information.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.