How do Investors look at Solar

[Kevin Kramer]

Hey guys I recently started a solar company here in Phx. I have rental properties and am flipping as well. I know solar for rentals doesnt make a whole lot of sense but i am curious  how investors feel about solar panels on commercial properties? Storage facilties, land, commercial space, etc. Can you write it off as a deduction? Has anyone done it and be able to provide feedback?

[Will Barnard]

It depends on the asset and the strategy. If your asset is owner paid electrical and it is an apartment in an area like SO Cal or AZ where sun is year round, then it makes a lot of sense. If tenants pay utilities, it makes little financial sense unless you can get higher rents for that privilege to your tenants that offset the cost and the net result to you is cash positive (or equity positive).

On other commercial assets where electricity is paid by owners (like self storage as an example), then you need to look at costs vs savings and see where your return comes out. It is all about the numbers and these hell no or absolutely answers are not really the correct answer as one size does not fit all! Solar has come a long way now, especially with generator and battery back up systems.