It’s no secret there is huge potential for small-scale solar energy generation in Australia – just look at the three-plus million homes that already have panels installed! While solar can slash homeowner’s electricity bills, we ask; can tenants or renters get in on the action too?
With high upfront costs and installation being permanently fixed to a property, we take a look at whether or not tenants in rentals can harness the power of the sun through solar power. What are some of the options available to them when it comes to accessing greener energy sources at a property they don’t own?
Question: Can you get solar panels if you rent?
It is certainly possible to get solar panels when renting a property, but in the end, it will come down to the landlord and what they are comfortable with being installed at the property. Some rentals may already come with rooftop solar panels, in which case, tenants can start accessing solar energy straight away. The landlord may have an agreement in place prior to signing the lease indicating how this transaction would work.
If you find yourself renting a property that doesn’t have solar panels installed already, there are a few ways you could go about accessing solar energy at the property, whether that’s through installing your own system or not.
Three ways tenants can access solar at their property:
Solar power for homeowners is pretty straightforward; they purchase a system, have it installed and start generating their own energy. Solar power for tenants, however, is more of a challenge, especially when landlords are brought into the equation. But that doesn’t necessarily mean it’s impossible. If you are a tenant looking to access solar energy at your rental property, here are three ways in which you could go about this.
1. Ask your landlord to install solar panels
Depending on the relationship you have with your landlord, this may seem like an extremely daunting option. If you are only entering a short-term contract at the property, this request may be a bit of a stretch, but, if you have a long-term agreement or a tight-knit relationship with your landlord, it may be worth asking them to install solar panels at your home. This is probably going to be positively received if you support your request with some research around the benefits of solar energy (particularly the benefits it would have to their property) and how you would contribute financially to the installation.
Some things you could propose during this conversation include;
A split incentive: Perhaps you agree to a slight increase in rent in order to help cover the costs of the solar installation.
The landlord receives a solar feed-in tariff: Solar feed-in tariffs (FiT) generate a credit on your electricity bill for the unused solar energy sent back to the grid. If your landlord were to install solar on the property, it may be worth making an agreement where they receive the credits from solar exports to help pay off the upfront costs.
Tenant purchases the solar system: If you are really keen to get solar installed at the rental property, it may be worth suggesting you purchase the solar system. This may require a bit of negotiation, however, to ensure that you can take the system with you once you move away. Keep in mind though, that this could be quite a pricey endeavour, as you’ll likely either have to leave the system you paid for at the property or fork out a lot to dismount the system and remount it at a new location when you move.
It may also be worth mentioning to your landlord that they may be eligible for a solar rebate or concession to help offset the cost of installing solar at their rental property.
2. Install a portable solar panel
Another way tenants can access solar at their residences is through the use of portable solar panels. Often used for camping, boating or caravanning, portable solar panels are smaller, compact systems that allow for self-sufficient energy generation in temporary locations. These can come in the form of mats, blankets or a smaller version of the typical tile structure seen on rooftop designs.
If installing a full-sized system isn’t a viable option whilst renting, it may be worthwhile to install a portable solar panel in the yard or on the window sills of the property. These portable systems will need to be connected to their own charge controller or generator to be fully functional.
Before setting up a portable solar panel system it may be worth double checking with the landlord that you have permission to do so.
There are a handful of companies that sell temporary solar panels for tenants who offer solar installations with removable frames that won’t damage the roof. Portable solar systems for tenants may also be available from fishing and camping stores.
3. Connect to a solar garden
Joining a community solar garden, also known as a solar bank, can help tenants gain access to solar energy. A solar garden is a collection of centrally-located, grid-connected solar panels which generate and export power. To join a bank or garden, residents purchase a plot within the collection. From here, the resident can receive financial credits for the energy generated by their plot within the garden.
It’s important to note that by joining a solar garden, the renter won’t always be receiving a direct source of solar energy for their home. Rather, they are contributing to the generation of solar energy for the grid as a whole and receive bill credits for their contributions.
Some community solar gardens may be run by a collection of residents in a nearby area. If you live in an apartment building, you may even find that your complex will maintain its own solar bank as a way to access solar power. A select few retailers also run their own community solar garden programs for customers.
Do tenants have access to a solar feed-in tariff if they get solar?
If there is solar installed at a rental property then it should be eligible for a solar feed-in tariff (FiT). Whether or not the tenant will be able to claim any credits on their bills via the FiT will depend on the arrangement they have with their landlord.
Some landlords may simply decide to leave the electricity account in the name of the tenant, allowing them to pay for their energy usage and receive any credits from exporting electricity. Other landlords, however, may decide to keep the electricity account in their name in order to keep track of the credits earned from exporting power. If this is the case, the landlord may make an agreement with their tenant similar to the following:
- The landlord pays the electricity bill on the tenant’s behalf and asks the renter to pay back the full amount, including what the credits would have subsidised. This means the renter will not benefit from the credits and the landlord can absorb the credit for their own use.
- The landlord pays the electricity bill on the tenant’s behalf and asks the renter to pay back the full amount minus the credits earnt. This way the tenant still receives a small discount.
- The landlord pays the electricity on the tenant’s behalf, absorbs the credits earnt from the solar exports and includes the electricity costs as part of the rent.
If you consider solar as a renter is a smart move, schedule an obligation-free consultation with Micah Finance Solutions. We can assist you based on your rental property needs.
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