Can I Install Solar Panels if I Rent My Premises?

Solar means landlords have a great chance to combine sustainability with financial gains. Solar panels, once a bit niche, are now a smart investment that can make rental properties more appealing and valuable. But how can you persuade your landlord to get solar on your roof now so that your small business can benefit?

There are three general options: your landlord allows you to install at your own expense; your landlord agrees to install and charges you for energy used; a third party installs solar at the premises and you agree to purchase energy (through an agreement called a PPA)

Should I install solar at my own expense?

if you have a long lease, this may work well for you. Take a free carbon reduction assessment from Gopher Zero to check your payback aligns with the length of your lease.

How can I persuade my landlord to install solar?

The first thing your landlord wants to see is the data on payback. From your Gopher Zero Carbon Reduction dashboard, choose the landlord report. This will give your landlord all the information they need about your energy use today and planned increases in the future.

The General Benefits of Solar Panels for Landlords

1. Boost Property Value:
   • Properties with solar panels stand out in the market. As more buyers and investors look for sustainable options, solar panels can increase your property’s value and marketability, making it a more attractive investment.
2. Attract and Keep Tenants:
   • Many modern tenants prefer spaces that shout about their sustainability credentials. Solar panels can attract these environmentally conscious business, and the savings on energy bills can improve tenant satisfaction, leading to longer leases and better tenant retention.
3. Enhance Corporate Landlord Image:
   • Using solar panels shows a commitment to sustainability, which can boost your reputation. This positions you as a leader in sustainable property management.

What grants and tax benefits are there for SME landlords?

In some areas of the UK, there are still grant incentives for installing solar panels. These can reduce the initial cost and enhance the financial benefits, making solar panels an even more appealing investment. The funding landscape is ever-shifting, but the UK SME Business Climate Hub has a good database of grants across the UK. Tax breaks are available too.

If the carrot isn’t enough…remind them of EPC ratings

All leased commercial properties are already required to maintain an Energy Performance Certificate (EPC) rating of E or above. By 2027, the EPC standard is set to rise to C, with the minimum requirement increasing to B by 2030. There are some exemptions such as Listed buildings and some low-energy industrial sites.

Solar is one of the most straightforward ways to improve the EPC, and offers the best RoI to a landlord.

What about free solar through subscription?

Some companies will install solar for free, with the tenant paying below-market prices for energy. These solar subscription deals are getting more popular.

Conclusion

Solar panels are more than just eco-friendly window-dressing; they’re a smart financial move for landlords. They reduce operating costs, offer a solid ROI, increase property value, attract and retain tenants, provide government incentives, and enhance corporate image. Embracing solar can boost everyone’s bottom line.