The same problem homeowners face: a split incentive problem. Renters don't own the property, so they don't benefit financially from the installation of solar panels. Additionally, most renters won't live in their rental property long enough for solar panels to be of any benefit. The split incentive problem is, ultimately, a significant obstacle in the way for 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. Community solar is a growing trend, and is now being offered in more communities.
A community solar project usually involves a partnership between a utility company and a third party. A sponsor purchases solar panels from another party and subscribers participate in the lease or power purchase agreement. They pay a monthly lease fee to the sponsor and receive credits on their utility bills.
Portable solar panels
Installing a portable solar panel in your apartment, condo, or other rental property can help you cut down on your electricity bill. These panels can be mounted on a roof or window, and can supply power to multiple devices. The panels typically produce about 0.3 to 1.5 kWh of electricity per day, which is more than enough to power a few small appliances. You can also get power from portable solar panels with battery storage.
These portable solar panels can be used to rent out, and are not required to be installed on rooftops. However, rooftop solar panels can be more efficient and may be used for larger systems. Renogy provides a variety portable solar panels to rent, as well a range of kits for homeowners.
Feed-in tariffs
Feed-in tariffs for renters are a new program being offered by the Los Angeles Department of Water and Power. 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 are planning to expand the program beyond its current 30-50 participants. California will see the creation of thousands more jobs through this program.
The idea behind a feed-in tariff is to encourage renewable energy production by paying producers above market price. These programs are very popular in Germany and many other countries. These programs provide renters with an energy source and a long-term contract.
Permitting
Allowing solar to be used by renters requires certain considerations. You must first ensure that your property is zoned to allow 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. Be aware of the provisions in the local building code.
Costs
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. Additionally, you will not be eligible for incentives offered by the government or local governments. Additionally, many leases come with escalator clauses that can lower your savings. For example, if a solar panel costs 12c per kilowatt, you'll pay 18.2c per kilowatt in 10 year time.
Luckily, there are a few ways to offset the cost of solar for renters. Rent increases and solar feed in tariff credits are two of the many options for solar leasing. The amount of rent you receive will depend on how big your solar project is and the land where it's built.