Solar for rental property?

Do we have any TI members with solar panels installed on their rental property? Does it work out in economic sense? Do tenants pay a premium as their electricity bills are virtually eliminated?

Don?t you usually put the SCE account in your name as the renter once you occupy the property?

The only way around this is to probably rent the place and say ?includes electricity as part of the rent?, but if I?m renting that place I?m turning the A/C to 65 and letting my kids forget to turn off the lights when they leave the room.  Oh ya and might as well buy a Tesla while I?m at it.

I don't think it makes sense to put solar on a rental.  There's no break even point. 

From a tenant's perspective, I would not pay more for a home with solar vs without.  And like Aquabliss mentioned, if it states electric included in rent, I'd abuse my usage. 

Now if the point of solar is that you want to help the environment and have the extra cash for it, why not, but financially it does not make sense. 

Guess we'll know in about 1/2 a year when solar is mandatory in 2020 for new builds and those homes get leased out.  We'll have data to look at the delta between those new homes and ones w/o solar. 

I have a 4.5 kWh system on my rental but it was because I lived there previously. I don't think the tenant is particularly paying more for it but it did make my rental more attractive. To me the panels are a sunk cost, if I can rent it out quicker and to better tenants than it's a "win" for me.

Cares said:

I have a 4.5 kWh system on my rental but it was because I lived there previously. I don't think the tenant is particularly paying more for it but it did make my rental more attractive. To me the panels are a sunk cost, if I can rent it out quicker and to better tenants than it's a "win" for me.

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i am not a cpa, but solar equipment has accelerated depreciation benefits when used for business - typically 5.5 years, but also depreciable 100% in the first year.  you may want to consult your accountant to see if there is any restriction from owning the equipment at your primary residence and then reclassifying it as a rental property and using it as business with regards to taking accelerated depreciation.