Economic crisis and recession are hitting everyone hard and the continuous rise in fuel prices has made it difficult to manage expenses. At this stage, people prefer cost-saving power alternatives and resources. The good news is that solar PV systems got their back! These panels come with extended warranties and excellent Return on Investments (ROIs). Solar panels work on photovoltaic cells, so it does not require any fuel except sunlight. Also, their sturdy build quality is the cherry on top, as it ensures longer benefits and improved real estate values.
Are Solar PV Systems Good?
Solar panels are the perfect choice for homeowners and tenants because they provide excellent ROIs and savings on annual power bills. All these qualities make solar panels a profitable option for everyone.
Whooping Savings
Solar panels are eco-friendly power alternatives that offer excellent warranties and payback time. Photovoltaic cells are functional components of solar panels and convert sunlight into usable electricity at minimal cost as its fuel is all-natural – sunlight.
(FiT) Feed in Tariff
It is a process of leveraging surplus solar power. FiT rates and credits are set by governments and assist residential owners and businesses to conserve more. When solar panels produce energy more than solar users need it is sent back to the grid. This method reduces grid power expenses. Some countries provide solar credits, and some give discounted rates to solar consumers. Thus, this Feed-in Tariff process ultimately saves money on grid power bills.
Solar Incentives and Tax Credits
Solar incentives include tax credits, solar rebates, and other benefits for solar users by the federal and state governments. These solar benefits promote solar technology adoption. Various local utility companies provide solar incentives to solar consumers. Landlords can leverage these opportunities to recover initial solar investments.
Increased Real Estate Value
Landlords who invest in solar power have the potential to boost the resale value or rental income of their properties. Properties with solar systems are more attractive for tenants, as compared to places without solar PV systems, and offer a quick return on investment.
Eco-friendly Power
Solar technology offers clean power alternatives as it does not require toxic fuels, unlike conventional power. Solar panels produce power without noise with zero emission of toxic gases like carbon monoxide, lead, etc. Also, solar energy use allows homeowners to reduce their carbon footprint significantly and contribute to a cleaner environment.
Green Advocacy
During the times when we need sustainable power production and environmentally friendly options, landlords can highlight rental properties through green advocacy. Since solar panels are eco-friendly, landlords can promote their places as eco-conscious and energy-efficient. Such practices attract potential tenants and buyers who prioritize environmental considerations and eventually result in higher tenant satisfaction and longer occupancy durations.
Devaluation Cost
When landlords invest in a high-end solar system, it usually comes with extended warranties like 20 to 25 years approx. During this time, homeowners can capitalize on the devaluation value method. This method allows them to claim a 10% decline in the solar system’s value every year. This depreciation expense helps in reducing the tax payable on the increased rental income. Consequently, landlords can stand to make substantial profits from an additional decade of conservations.
Things to Consider!
Long-Term Investment
Landlords must contemplate a few things like long-term commitment before investing in solar. A thorough evaluation of the payback period and the overall return on investment (ROI) is essential. Factors like monthly or annual energy consumption, location of the property, and types of local solar incentives play a key role in solar panel installation feasibility and financial savings.
Location Suitability
Sunlight is the only factor that assists solar panels in solar power generation. Landlords should evaluate whether the rental property has an open area or apt space on their roofs to install solar panels. Also, at this stage, it is significant to consider places without shades, trees, or any other barriers to the sunlight and panel surfaces.
Periodic Maintenance
Generally, solar panels are low-maintenance machines that work efficiently with less cleaning. Before shifting to solar, consider the associated expenses and added outlay coupled with solar panel maintenance. It is crucial to go for professional solar service providers to avoid any damage or loss.
Open Communication
Open communication is the key to transparent and successful tenant agreements. The process lets tenant involvement during the creation of rental agreements. Open communication shows mutual transparency that leads to extended tenancy periods.
Take Away
Nowadays, many landlords prefer to invest in solar technology, and the good news is that solar-powered properties are high in demand in the current real estate market. So, solar investment is a savvy choice with excellent financial benefits and ROIs. Also, solar PV systems are best for the environment because, unlike conventional fuel and electricity, they are noiseless and do not release harmful gases.