Installing solar panels - can LL & tenant benefit?

little_acorn_2

I have a semi-detached two-bed property that I rent out and have a good tenant. I'm interested in installing PV panels on the house but wonder what the complications might be on a rented property where tenant pays utility bills?

Are there any private landlords, or tenants, out there with experience of how this could benefit both parties? If so, I look forward to hearing from you!

Doozergirl

It will benefit them, it won't benefit you at all.

It's not something that gives you an immediate return on your money, even if you were using the electricity yourself. The bills belong to the tenant so they'll get reduced bills.

Unless you can take advantage of the feed in tariff and they pay the bills, but if I were your tenant, I'd be using as much electricity as I could in the times when the panels were producing (eg. setting the dishwasher, washing machine etc to run during the brightest parts of the day) which you can't control at all.

People are still deliberating about whether it's worth doing for yourself, let alone whether it works as a separate investment.

G_M

As Doozergirl says: mad.

Not sure I'd do it yet for myself, let alone to benefit someone else!

taxsaver

I think it could be potentially very worthwhile, with you getting the benefit of the FIT payments (tax free) and the tenant the benefit of free electricity. Makes total sense to me and something that I'm giving serious consideration to myself.

bris

Very good idea, in fact it's so good there are now lot's of companies doing the rent a roof scheme.
The tenant will get the benefit of the free power and you will get the FIT which is worth up to about a grand a year. Just now this is good for 25 years with pay back after 10, so you get about 15 years back.

BornAtTheRightTime

Not sure how you will get the benefit of the FIT payments but if you can (and there are quite a few rent-a-roof companies springing up so possible somehow) you'll make around £1k to £1500pa, assuming a typical 4kWp system. The savings in electricity for the tenant equate to around £100 to £200 a year if they are smart about when they use power.

Much more info on paybacks etc on the Green and Ethical board.

G_M

Your tenant will benefit from free elecricity, not you.

You will only get the benefit of the FIT if you pay for the installation. It's expensive and the payback period is very long.

If you get a company to provide free installation, they will get the FIT - that's why they do it!

BornAtTheRightTime

Doozergirl wrote: »

if I were your tenant, I'd be using as much electricity as I could in the times when the panels were producing (eg. setting the dishwasher, washing machine etc to run during the brightest parts of the day) which you can't control at all.

The only effect of this would be to reduce the amount of units sold back to the national grid. As these only attract a payment of approx 3p per unit, equating to around £50pa, it's not important compared to the income from the FIT payments. The units sold back would credit the bill payer - ie tenant; it's the FIT payments that the OP needs to get hold of to make it payback for him.

BornAtTheRightTime

Must admit, I was thinking in the shower this morning - like you do - that if I were a landlord with a large portfolio of rental properties I'd be stronly considering setting up a MCS-certified rent-a-roof company and installing panels on my suitable properties and pocketing the FIT payments.

little_acorn_2

Thanks all. I fully expect to pay for the installation (don't want to 'rent the roof') and am more interested in the FIT for generation than for export to grid (which will be minimal).

Thanks for the info that the FIT is tax free, I didn't know that and it definitely makes a difference to the sums. If the panels generated a tax-free return of somewhere between 7 -10% from FIT, it seems mad not to do it. I couldn't get that return from any type of savings investment.

Of course there's the capital outlay, which in a sense is non-returnable, but since my need is for income (the property supplements my pension) it makes me wonder, what's the catch?

I'll definitely be making further investigations.

Does anyone know if there's a standard procedure in place for FIT to be paid to the owner of the property rather than the resident?

hcb42

If you own it, then you would get the FIT.

However as you are aware the tariffs will reduce from april so the sooner you act the better.

If your tenant is out at work all day, when you are generating, then more to be sold to grid.. Happy Days. I wish i could afford to invest, I would definitely do it.