When you own investment properties, improvements are an important part of your investment strategy. Home improvements make homes more appealing, rent for a higher amount, boost resale value, and provide other benefits like improved longevity, quality, and durability of the home. If you are considering adding solar to your Florida rental homes, you can also reduce operation costs and see ROI in just a few years.
Florida’s Solar Landscape for Rentals
Florida gets around 250 days of clear sunshine a year and receives some of the best solar radiance in the country. Florida is also one of the most enthusiastic states in terms of solar adoption.
Florida’s solar policies such as tax incentives, net metering, and property tax exemptions (no cost for the increased home value) also make it a financially viable investment.
Benefits of Solar for Rental Properties
Why add solar panels to your rental properties? There are many benefits shared by both landlords and tenants.
- Reduce operating costs: Homes with solar panels have lower utility bills, whether paid by the landlord or tenants.
- Increased property value: Your investment homes will rent and sell for higher prices after solar is installed.
- Attract tenants: Eco-friendly tenants will be more interested in renting your homes.
- Higher rent potential: Solar homes can rent for more than non-solar neighbors, justified by the lower energy bills.
- Tax benefits and depreciation: You can claim depreciation on your taxes immediately after installation.
- Energy independence and resilience: Your homes and tenants will be protected from power outages with reduced reliance on the grid. This is particularly useful after major storms.
Financial Considerations
On the financial side, consider the initial investment cost which can be offset by solar loans, tax incentives, solar rebates, and PACE financing options. Consider the payback period analysis paired with the long-term ROI projections including both lower energy bills and higher rent. Overall, solar can provide a net positive impact on your rental home cash flow.
Implementation Strategies
As you make plans for solar, map out the steps for implementation of solar from installation to long-term maintenance.
- Determine each home’s average power consumption
- Assess your roof and main panel readiness for each property
- Plan for maintenance and upkeep
- Make insurance arrangements
Landlords can also make plans to integrate solar into their rental strategy. If you include electricity in rent, the solar savings are passed on to you, or you can implement separate utility billing. You can also explore solar renewable energy credits (SRECs) as a business financial calculation.
Learn More
If you own one or more rental homes in Florida, solar could be a valuable upgrade in terms of energy savings, tenant attraction, and sustainable business practices. Contact us today to get a free quote on a solar panel system.
