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Updated about 2 years ago on . Most recent reply

Account Closed
  • Investor
  • All Over, NC
14
Votes |
70
Posts

Billing tenants for solar power in North Carolina?

Account Closed
  • Investor
  • All Over, NC
Posted

Hello, I'm hoping somebody can help me understand the laws regarding utility payments in North Carolina a little better. I recently bought some property there where I plan on building a duplex, possibly two or three of them.

As a completely separate investment, I want to install solar panels on the roof of the duplex. The idea is not to give free electricity to my tenants, but to use my roof as a space to earn additional income. Please let's not start another argument about whether solar energy is worth the investment or not.

The law in NC states that each unit needs to have it's own individually metered electric service from the utility, with the service in the name of the tenant. No submetering allowed. You can read the law here: http://www.ncleg.net/EnactedLegislation/Statutes/H...

It also says:

"The provisions of this section requiring that service and meters for each individual dwelling unit be in the name of the tenant or other occupant of the apartment or other dwelling unit shall not apply in either of the following circumstances:

(2) The tenant and landlord have agreed in the lease that the cost of the electric service or natural gas service or both shall be included in the rental payments and the service shall be in the name of the landlord."

I want the power service for each unit to be in my name. Then, each side of the duplex will have it's own separate net metering solar system which will basically turn the power meter backwards. I don't want to give the tenants credit for the solar energy, they didn't pay for the solar panels. I simply want to charge them the standard electric rate for what they actually used.

The only loophole I can find to allow me to do this is #2 posted above. If I include the cost of power with the rent, then the power service can remain in my name for each tenant. That way I would keep any solar credit.

The question is, if I do include the cost of power in the rent, is there any way for me to charge for it variably each month based on their actual usage? Or does it have to be just one flat rate? Could I charge something like an "amenities fee" in the amount of the power bill every month? Can it be a variable amount based on meter readings or does it have to be the same charge every month?

Most Popular Reply

User Stats

624
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336
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Tanya F.
  • Rental Property Investor
  • Madison, WI
336
Votes |
624
Posts
Tanya F.
  • Rental Property Investor
  • Madison, WI
Replied

We did it this way- the bills with the utility were in our name. State requires that for houses with solar panels.  For the first year, we forwarded the monthly bill to the tenants, they paid us their actual usage each month. Then we paid the utility. That averaged $45 per month. After the first year we factored that average usage into the rent. We haven't had to tweak it. We're in our 4th year now.

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