Connect with us

Hi, what are you looking for?

CleanTechnica
Image by David Waterworth

Clean Power

What About Putting Solar On The Rental? Helps Everybody Out

In Australia, it is common practise for middle-income professionals to buy rental properties and use the tax advantages generated to offset Australia’s high income tax. As a teacher, I was paying roughly 30% of my income in tax. So I bought a little house. The tax offset and the rent helped to pay the expenses, but not all of them. Buying it in the right place meant that after a time, I would make some capital gains, sell it, and then pay Capital Gains Tax — this is the Australian way.

I thought I was on a winner when I put solar panels on my roof. So, I thought, why not put panels on the rental. It was a townhouse, so it had to be approved by the body corporate. They okayed it and we went ahead. Two years later, when I sold the property, I was most disappointed that it did not enhance the price of the property. Prospective buyers said it didn’t make a difference to what they were willing to pay. 

On a larger scale, many businesses are run from rented premises. They haven’t got the right to put a structure on the roof, and the owner has no incentive. The renter gets the benefit of the low-cost solar and there is no money flowing to the owner of the premises.

A new study states: “The results reveal that putting more solar on ‘hardship homes’ — defined for this study as low-income rental properties — promises to slash annual grid-based electricity consumption by 40%, lower greenhouse gas emissions by 1.6 tCO2e per household annually, and cut energy bills by $2908 per low-income household over 15 years.”

That sounds great – but who is going to pay for it?

The report suggests a “potential ‘shared value’ model that could stimulate greater investment in PV for properties without government intervention. This model involves a third party (in this case we use a NFP) that could deploy solar PV on hardship households and divide the economic benefits between resident and the landlord (in the case of renters).”

So, we either need to create a nonprofit organisation or use an existing one (perhaps a local council) that would own the behind-the-meter systems and rent the roof space from landlords. Complicated but doable. Landlords would increase their return and tenants would get cheaper electricity during the day. 

Watch this space.

 
 
 
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
 

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Advertisement
 
Written By

David Waterworth is a retired teacher who divides his time between looking after his grandchildren and trying to make sure they have a planet to live on. He is long on Tesla [NASDAQ:TSLA].

Comments

You May Also Like

Biofuels

At the coal face of a conference that involved governmental figures, academics, logistics customers and OEMs, the detailed technical conversations are almost all about...

Climate Change

If you believe some negative stereotype about a group and their risk profile, ditch it. It's wrong, and it doesn't apply to the person...

Climate Change

I urge people thinking about Flyvbjerg's work who are asking themselves, "But what about this critically important aspect of project success?," to not assume...

Cars

One of ACE EV’s directors had previously helped build the “switch” vehicle, an early iteration of the ACE Cargo. The first ACE Cargo was...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.