0191 500 1154
From 2025, all newly rented properties must have an EPC rating of at least “C”, and existing tenancies must meet these requirements by 2028. But how does investing in solar panels help you as a landlord?
Some landlords can apply for free home upgrades through the ECO4 Scheme.
What is the ECO4 Scheme?
The ECO4 scheme is a government program designed to tackle fuel poverty and reduce carbon emissions across Great Britain that helps low-income upgrade their efficiency. Medium and large energy suppliers fund installing energy-efficient home systems under the ECO4 scheme.
To read more on the ECO4 scheme, please click here to go to the official Ofgem website.
Below are some considerations before you install solar panels on your property:
Save money, make money: Solar panels can significantly cut energy bills, increasing profits and reducing costs over time. Although solar panels are expensive upfront, if you think about the longevity of the panels and how much you will be saving in years to come, it is worth the initial cost. You can sell the energy to your tenant, ultimately leaving you a nice little profit.
Attract tenants: Sustainability is becoming increasingly important to tenants, and solar panels are a significant selling point. By offering an eco-friendly option, you could increase demand and reduce vacancies, especially during the energy rises and the cost-of-living crisis. If you have already implemented solar panels and the tenant wants to vacate the property, they take the risk that their energy bills might increase significantly; you need to make them aware of that, which could persuade them to stay. Retaining a tenant long-term means you can guarantee income every month.
Increase property value: Solar panels add value to properties, making them a wise investment. They provide long-term savings on energy bills, which is attractive to potential buyers. Buyers are willing to pay a premium for energy-efficient and environmentally friendly homes.
Protect the environment: Solar energy is clean and renewable, reducing your carbon footprint and helping protect the environment. This can help reduce the amount of pollution emitted into the atmosphere. This can be a significant selling point to eco-conscious tenants; they are more likely to stay once you have them.
A reliable source of energy: Solar panels provide uninterrupted power during outages, which benefits tenants with medical conditions. This can provide peace of mind and make your properties more attractive to potential tenants. If you have tenants with medical conditions, you might qualify for the ECO4 Scheme.
Long lifespan: Solar panels have a long lifespan and require little maintenance, providing benefits for years. Once installed, the tenant does not need to do anything, meaning that the only disturbance they experience is when they are installed. This makes them a worthwhile investment that can save you money in the long run.
In conclusion, installing solar panels on your rental properties is a wise choice. Solar energy is a sustainable and cost-effective investment. By reducing energy costs, attracting tenants, and increasing property value. With government incentives and a long lifespan, solar panels offer numerous benefits that you should consider.
The Government website has a handy tool which allows you to view the energy certificate of the property – https://www.gov.uk/find-energy-certificate. It also gives you pointers on improving it, which you will need to reach if your property rating falls below a C rating.
If you don’t comply with the government’s efforts to reach net zero by 2050, a more severe penalty of up to £30,000 per property will be handed out to a landlord for failure to fulfil. This penalty currently stands at just £5,000.
Like what you read? Don’t hesitate to contact North East Solar; we can get you going in the right direction.