Electricity proposal to maximise on solar feed in rate

[Holmes2012]

I am thinking of converting my PPOR into IP so I can myself upgrade to a better house.

My question is more on the following proposal to a tenant.

If I factor in a $25 per week into the rent (ie instead of $380/week, lease it for $405/week); and cover for electricity up to $300/quarter (with no credit passed on to the next quarter), will this stand up to the tenancy act?

Read it as a special term inserted: "$405/week with electricity covered up to $300/quarter (tenant pays for excess calculated every quarter for that quarter's usage and access charge untainted by carry forward credits)."

Rationale for doing this - to retain the $0.55/KWh feed in tarriff and get the return on my solar panel investment. Tenant will have no cash flow issues every quarter plus sees the electricity as free (mind you market rent can range from $380 to $440 for a similar sized home).

Keen to know your thoughts.


Do not need advice on financing (ie. equity being sanctioned etc for tax).

 

[vaughan]

If I factor in a $25 per week into the rent (ie instead of $380/week, lease it for $405/week)...

(mind you market rent can range from $380 to $440 for a similar sized home).

So charge $440 a week rent, let the tenant pay their own electricity, and forget the frigging around with special conditions.

Or is the issue that you lose the feed-in tariff once the name is changed on the account?

 

[ojame]

So charge $440 a week rent, let the tenant pay their own electricity, and forget the frigging around with special conditions.

Or is the issue that you lose the feed-in tariff once the name is changed on the account?

If you change the name on the account, the rebate (in QLD) drops back down to something like 8 cents. I assume he's trying to avoid this, as he'll lose the massive rebate all together (rebate goes to tenant).

The RTA suggest charging the tenant for electricity use only (not associated costs like metre reading) - though I'm not sure in what manner.

 

[marg4000]

Do you intend to move back into the property one day (even a vague possibility)?

If not, it really does not matter. With the loss of passing on the higher feed-in tariff, the extra value on resale of having solar power is greatly reduced (as friends found out to their great regret).
Marg