Solar system question?

[nathanael_87]

Hi all,
I've been reading about the changes with the solar feed in tariffs in qld taking place and have a bit of a question.
I'm installing a 4.5kw system on my IP currently, however with the new changes apparently if the power a/c holder changes names with different tenants then the 44c rebate drops to just 8c.
I was thinking would the best option to try to keep the 44c rebate (as I plan to move back into the property in the next 2 yrs) just to have the electricity in my name and just pass on the bills to the tenant, like what is done with excess water charges?
Does anyone know if this works, or would work? Any other suggestions would be greatly appreciated.

Cheers Nate

 

[DistinctPM]

So long as you include it in the tenancy agremeent as an outgoing that the tenants are responsible for it should be OK. You would need to ensure the rebate was passed on to the tenants while they are paying for the service. The only thing to remember is that because of the time it may take to get the invoice to the tenants (especially if you are through are using an Agent) you may be paying for the bill before recieving payment from the tenants so may have to carry the debt for a few weeks.

 

[Jake D]

...you may be paying for the bill before recieving payment from the tenants so may have to carry the debt for a few weeks.

That's exactly what credit cards' 55 days interest free is for.

 

[devank]

PM may charge you 5% or so to collect that money. At the end of the day, is it really worth all the hassle?

 

[vaughan]

If you depreciate the solar equipment you also may have to claim the government rebates as income.

 

[nathanael_87]

PM may charge you 5% or so to collect that money. At the end of the day, is it really worth all the hassle?

Yea, after speaking to the agent they don't charge for that. It may be a bit of messing around but for a 4.5kw system I plan on moving back in in a few years time so the 44c compared to 8c return is worthwhile in the long run I think.

 

[Francesco]

Yea, after speaking to the agent they don't charge for that. It may be a bit of messing around but for a 4.5kw system I plan on moving back in in a few years time so the 44c compared to 8c return is worthwhile in the long run I think.

It is quite straight forward in Canberra and I imagine should be alright if you clarify with the utility authority supplying your property.

The arrangement should be explicity covered by a special clause and attached to the tenancy agreement.

You register as outlined with the electricity supplier and receives the bill.
You pay for electricity usage first.
You claim for reimbursement by tenants through the PM with attached buill but exclude the credit due to electricity generated by the solar panels.
This happens about 4 times a year and can happen at the same time as the claim for reimbursement for water usage if water is also supplied by the electricity utility company.

Just make sure that the PM posts a note that the electricity usage is registered to the LL because of the solar system or a new starter at the realty agency may seek to register usage to the tenants to cut out the handling work.

 

[ozsupra]

We do that currently and only have one issue and that is at the end of the lease. The PM needs to do a meter reading and either deduct this from the bond or obtain payment. Then when the next tenant starts we need to factor this in. As long as you explain this to the tenant prior to the lease being signed their should be no problem (touch wood)

That being said, I live in fear that a tenant one day will change the supplier without letting us know.

As to Francesco's reply - we pass the rebate on to the tenant as well as this is a rental incentive, rather than keeping the rebate.

A.

PS and the PM doesn't charge extra for this..

 

[mattysavager]

Give it a go.

However - definitely pass ALL the benefits of the rebate onto the tenant. If you end up generating cash from the solar - give this to them also. In QLD you must by law pass on any rebates/discounts in utilities that the tenant is paying.

Keep in mind though - that the tenant will have you over a barrel. They may use this arrangement to blackmail you at the end of the lease with things such as "we're not cleaning the property, and if you don't agree, we'll call Energex".

No amount of RTA dispute resolutions can give you back your 44cents rebate.

Matt

 

[fisherman]

Does the solar generator unit have to be switched on, ie isolate and can it be excluded from the lease (add a clause)?

True you gain nothing in the interim from your investment but if the lease is short you may avoid risks you cannot manage.