Anyone Installed Solar on an IP or Commercial Property??

[charlieandkath]

Just wondering how you deal with the electricity bill or credit with the tenants?

I have been told that you can put a variation in the lease relating to this and if the tenant signs it then it is legally binding.

Does anyone have experience with this? Would be interested to hear. Thankyou.

 

[Aaron Sice]

we're doing a few projects whereby the clients themselves are requesting solar panels for tenants as part of a larger, build and hold strategy.

the 'kickback' they get in electricity bills means the owner can charge slightly higher rent, the solar panels themselves have a PE of about 5 on the rent increase without taking into account further rent increases as the tenant gets the bill/credit.

that said, if you've got a 3kW system on a 2bed unit with LED lights and a gas stove, i'd want the kickback myself. But a 1.5kW system on a 3bedder? just charge slightly higher rent.

hope that helps.

 

[Comper100]

We have a 1.5kw solar system on our PPOR that we moved out of last year to rent. The deal with the tenants was that we would increase the rent a touch but they get the benefit of the savings.
Our bills went from $600ish a year to $80 credit, so they may get a similar return.
We didn't plan on renting the place but it kinda just went that way

 

[charlieandkath]

Thanks Aaron and Comper100, does not sound like there are any major laws around this situation.

I was thinking that if I installed solar on an IP I would like the fed in electricity to be paid to me. The service availability charge of 80 cents a day could be given to the tenant. This way landlord and tenant are benefiting and the landlord then knows exactly what he is giving to the tenant.

Any further thoughts????

 

[Aaron Sice]

....just put it all in writing and tell your PM there is NO negotiation on the subject....