Investing in a rental property is a smart move. It helps you earn a supplemental income and is extremely lucrative if you find ways to reduce costs long-term. One of the best ways to reduce costs at your rental properties is by hiring solar companies near me to install a solar panel system. If you aren’t convinced this is an investment you should make, keep reading. Below you can learn about the benefits offered by installing solar panels on your rental properties.
Take Advantage of Tax Credits
Investing in solar panels for your investment or rental property means you can take advantage of federal tax benefits. Some states also offer incentives. It’s best to investigate the tax incentives available for solar installation to ensure you get everything you deserve.
Claim the Depreciation Expense
Installing solar panels on your rental properties provides another benefit. It allows you to claim a reduction of 10% of the total system value each year. If you decide to buy a high-quality system and have it properly installed, it will last for 25 years or longer. This is a long time to claim depreciation. It will also help you make up for the tax you must pay on the additional income you are charging the renders of the investment property.
Enjoy Increased Property Value
When you install solar panels on investment properly, it will help you attract new and better tenants. Over time, this will increase your property’s bottom line. Most people are more than willing to pay more for a property that has a solar system installed. After all, they receive savings on electricity, and you get to charge more for rent. The more rent that you charge allows you to repay the initial investment you made to install the solar panel system. If you factor in the current market-rate rent increases, this will leave you with more than a few years of gains.
Lower Utility Costs
If you put solar systems on your investment properties, it will reduce your dependence on public utilities. Also, the supply of electricity is much more reliable. This shared usage of electricity and solar power means that utility bill amounts are reduced significantly.
Local, Utility, or State Rebates
While there are not many federal rebates (if any) for installing a solar system on your rental property or making energy-efficient purchases, there are other options. For example, some state and local governments and utility companies provide rebate options. Also, solar manufacturers often provide special discounts, which makes the system more affordable to invest in. Since incentives and rebates are typically only available for a limited period of time, you will have to research what is available to ensure you get the best deal.
Reduce Your Carbon Footprint
Many landlords have opted to add solar panels to rental properties to help reduce their overall carbon footprint and environmental impact. As the implications of climate change are becoming more and more obvious, many people want to know what they can do to benefit the environment. If this is something you are interested in, then investing in solar panels may make sense. Producing electricity requires the consumption of fossil fuels. This adds a lot of greenhouse gases to the atmosphere. When you install solar panels to your rental properties, it means they have access to green power, which reduces their and your impact on the environment. While you don’t directly benefit from the electricity produced by the panels, you are doing something good for the environment, which makes it more than worth the investment for most people.
Solar Panels for Rental Properties
As you can see from the information above, more than a few benefits are offered by investing in solar panels for your rental properties. Be sure to keep the information above in mind, which will help ensure you make the right decisions when it comes to solar power and your rental properties.