Are Solar Panels a Wise Investment for Landlords?

Amidst the current cost-of-living crisis, the question arises: are solar panels a good investment for landlords? With everyone feeling the pinch, renters and businesses are actively seeking ways to trim expenses and will be scrutinising their utility bills for potential savings. This need for cost-cutting, alongside the demand for businesses to reduce their carbon footprint, means installing solar panels into rental properties could prove to be a smart investment for landlords. In this blog, we'll explore some key advantages of installing solar panels on your property.

By optimising otherwise wasted space, solar panels offer substantial savings to tenants on electricity bills by harnessing clean, renewable energy from the sun. By saving money on their energy bills, they are more likely to remain as tenants in your building. And, with government pressure for landlords to ensure their buildings are up to current legislation, installing solar panels can raise the EPC (Energy Performance Certificate) rating for your building. A higher EPC rating indicates that the property is more energy-efficient. The allure of reduced energy bills makes properties even more attractive to potential renters, so hopefully, if your property is empty, it won’t stay that way for long!

At HDM Energies, our Energy for All Scheme provides landlords with solar energy at a fraction of traditional costs, covering installation and offering fixed rates. For example, at our rate of 15p per kWh, landlords could save £9,000 annually on their electricity bills compared to standard electricity prices. *

It’s proven that solar panels add value to any property, so installing them will give landlords a competitive edge. They appeal to environmentally-conscious tenants and may even command higher rental rates. As solar panel installations contribute to overall property value, they’re also great long-term investment if you’re looking to sell up in the future. If you are wanting to sell the building or even change the tenant, with our Energy for All scheme, you can easily carry the contract over to the new owner or occupant at the same rate.

Depending on the efficiency of your solar panels and the surplus energy they generate, you might be able to sell excess electricity back to the grid. Incentives like the Smart Export Guarantee (SEG) offer returns on renewable sources like solar power. Being paid for any electricity exported to the National Grid provides landlords with an additional revenue stream.

In a rental agreement that includes energy use, landlords don’t have to pass on the savings they will gain with HDM Energies Energy for All scheme. We will sell any energy that is not consumed by your tenant to the National Grid through an export meter and tariff. We then pass on all the savings directly to you through the lowest possible price per kWh on your consumption. Landlords can then retain these savings as they don’t have to be passed on to the tenant.

With energy costs increasing, landlords with solar panels shield themselves and their tenants from unexpected hikes. Generating electricity from sunlight lessens reliance on utility companies, avoiding the impact of price rises. You can also utilise a battery storage system, which allows solar panel users to store and use the excess energy they generate on-site. It could be used during the night to avoid using mains electricity, or in the case of a power cut, making your energy system even less reliant on the grid.

Solar panels significantly reduce greenhouse gas emissions, aiding in the fight against climate change. Apart from benefiting the planet, landlords prioritising renewable energy and sustainability can improve their appearance in the community and tend to attract eco-conscious tenants who could be willing to pay even more for greener spaces. Tenants can also benefit by claiming the carbon reduction from the green power generated from your roof.

Solar panels boast durability and long lifespans, typically lasting 25 to 30 years or more. The majority are also backed up by product warranties and performance guarantees. This longevity ensures landlords can enjoy the benefits of solar energy for an extended period without the worry of immediate maintenance or replacement costs.

In the UK, the weather can be unpredictable, and despite solar panels being low maintenance, debris like dust, dirt, and leaves can build up on their surface. With HDM Energies' Energy for All Scheme, you can sidestep the hassle of panel maintenance as we will keep your system in prime condition at all times. We'll handle the periodic cleaning and maintenance, and monitor for any electrical issues to ensure your panels operate at their peak.

We get it, understanding the financial aspects is crucial, and front-end costs can appear overwhelming. If you find yourself unable to cover the expenses of materials and installation upfront, HDM Energies' Energy for All scheme might just be the solution you've been searching for.

With HDM Energies, there's no initial cost to you. We handle everything from specification to installation of a solar panel system tailored to your property. What's more, we offer energy back to you at significantly reduced rates (starting from just 15p per kWh) compared to conventional electricity suppliers. Any surplus energy generated is sold to the national grid, helping offset the installation costs. And the best part? The price remains fixed throughout the contract period.

Selecting the right solar panel system is key. Factors such as cost, energy production, warranty, and long-term reliability should be considered when making a choice. Consulting with solar panel experts can offer valuable insights into the best options.

HDM Energies works with landlords of all sizes to utilise commercial rooftop space. We can optimise your building's value with solar and make switching to solar as easy as possible for you. With our Energy for All scheme, we can fully finance, maintain, and operate your rooftop solar PV systems so all you, or your tenants do, is pay for the solar electricity used.

So, there you have it: installing solar panels offers numerous benefits for landlords, including cost savings, increased rental income, carbon reductions and improved occupancy rates. By embracing solar energy, landlords not only contribute to a greener future by meeting the demand for sustainable buildings but also enhance the overall value and marketability of their properties. It's a forward-thinking choice that aligns with the growing demand for eco-friendly businesses while promising long-term financial gains.