Could Solar Panels Benefit Landlords?

By Author: Carolyn Clayton
Total Articles: 129
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Any savvy landlord will be looking for any way to increase the income from your property - and the new buzz word right now is solar panels. So, is this a viable way to boost your profits? Let's take a look at the nitty gritty involved.

There's no doubting that installing solar panels is expensive, but if you're in property for the long term then this could be a genuine and real way of generating extra income.

1. Because solar energy is only just beginning to gain popularity in the UK, the government is keen to encourage people to install panels. To this end, they have introduced what is known as a 'Feed-In tariff,' or Clean Energy Cash Back Scheme. Essentially, what this means is that all the electricity your solar panels generate will give you an annual government payment for the next 25 years. The amount per kWh is 43.3 pence which, based on average systems, equates to about £1000 per year.
And, this payment is guaranteed tax free and index linked for the whole of the 25 year period.

2. You will also receive payment for any electricity which you don't use and is fed back to the national grid ...
... at the rate of 3.1 pence per kWh.

3. Installing solar panels is highly likely to increase the value of your property. It will also make the property far more desirable to tenants as solar panels are likely to produce around 50% of all the electricity used in the home. The electricity provided by the solar panels is effectively free – meaning your tenants will be protected from ever rising energy costs.

4. Of course, don't forget the environmental aspects, as fitting solar energy panels to your property can save over a tonne of CO2 emissions each and every year. This will also make your property far more attractive to potential tenants, as more and more people are becoming environmentally aware.

If you are considering having a solar energy system fitted then you should be aware that the government incentive scheme at the levels mentioned only applies to systems fitted between 01 April 2010 and 31 March 2010. After this time it is highly likely that the incentives, although still present, will be at lower levels.

This system being offered is based on a similar system which has been run in Germany since the 1990's and proved extremely successful. To qualify, the systems and individual components which make up the systems must conform to standards which have been set by the government – known as the Microgeneration Certification Scheme or M.S.C. The system must also be installed by M.S.C. accredited engineers.

As you can see, solar panels provide an interesting option and may well be something which some landlords might like to take up. Not only could it provide you with an annual income, but anything which makes your property more desirable means increased rental income.
Priest Properties are a Letting Agents Nottingham offering Nottingham Lettings and landlord packages.