It is the same problem for renters as homeowners: a split incentive. Since renters don't own the property they won't be able to reap the financial benefits of installing solar panels. Additionally, many renters do not stay in a rental property for long enough to reap the benefits from solar panels. Ultimately, this split incentive problem is a big hurdle in the way of solar for renters.
Community solar
Many renters don’t have the roof space to put a solar panel on their roof. This is why they can get involved in community solar projects. The programs are a great way to help the environment and cut your utility bills. It is becoming a more popular trend to offer community solar in more areas.
A community solar project is typically a partnership between utility companies and third parties. A sponsor purchases solar panels from another party and subscribers participate in the lease or power purchase agreement. The subscribers pay a monthly lease fee to sponsor and get credits on their utility bill.
Portable solar panels
You can save money on your monthly electric bill if you have a portable panel. These panels can be placed on a roof or window and provide power for multiple devices. These panels produce between 0.3 and 1.5 kWh per day of electricity, which is enough to power several small appliances. Many portable solar panels have battery storage, so you can always use the power whenever you need it.
For residential solar panels to be used on roofs, portable panels are more efficient than those for rent. However, rooftop solar panels can be more efficient and may be used for larger systems. Renogy also offers several kits for homeowners.
Feed-in tariffs
Los Angeles Department of Water and Power is offering renters feed-in tariffs. Customers criticized the previous net-metering program that was offered by the department for residential properties. However, it had low returns and provided poor customer service. Officials plan to expand the pilot program, which is currently limited to 30-50 participants. The program is expected to create thousands of jobs in California.
A feed-in tariff is designed to encourage renewable energy production. Producers are paid above the market price. These programs are extremely popular in Germany, as well as other countries. They provide tenants with both a reliable source of energy as well as a long-term rental contract.
Permitting
Certain considerations are required when renting solar. First, you need to make sure your property is zoned for solar panels. This is done through the Department of Planning and Zoning. Next, determine the type of permit review process you will need to follow. It is also important to know the details of the local building codes.
Prices
It is possible to save money by renting your home with solar panels. You can lease a solar panel system but it will cost you more than if you bought it. Incentives from the government and local governments will also be lost. Moreover, many leases have escalator clauses that reduce the savings you make. For example, if your solar panel costs 12 cents per kilowatt-hour today, you'll pay 18.2 cents per kilowatt-hour in 10 years time.
Renters have a few options to offset the solar cost. Rent increases and solar feed in tariff credits are two of the many options for solar leasing. The amount of rent increases will depend on the size of your solar project and the value of the land on which you're building it.