Solar panels for a rental

[Kenny Hardcastle]

I'm currently considering putting on solar panels for my duplex in Cleveland Ohio for $150 a month. The solar panels would cover the cost of both units and if there is any excess energy I can sell it back to the grid, at a minimal gain. Where I think this will add value is I can increase the rent of both of my units by $100 to $150 each. I would be able to cover all utilities for both units. 

with the tax incentives and energy rebates I could potentially save an additional $3,000 a year, not to include anything I sell back to the grid.

it is also estimated that I will raise my property value by $4,000 by adding the system.

has anyone else done this with their rentals? Or had any experience?

[Krystle Khoo]

@Kenny Hardcastle

Solar panels alone will not offset your electricity costs. Most home electricity is consumed in the evening when your panels are either not producing or producing at a degraded efficiency.

To fully offset your electricity cost you will need batteries as well. A battery system for a small family plus electric car was going to cost us between $30-40k on top of the solar panels when we considered it in 2019 (Southern California).

Even if you installed a battery system, I'd be

impressed if you had enough southerly-oriented roof space on a duplex in Ohio to cover the needs of two families. Check your region's solar irradiance rating here: https://www.nrel.gov/gis/solar.html

With solar plus batteries your probably looking between $45-65k to purchase the system outright depending on your roof angle, size, capacity need, etc. Electricty costs from the grid are not high enough to justify this cost over the standard 25yr solar panel life span (not sure about battery lifespan, which is likely shorter).

With solar panels alone, the amount of bill offset likely will not justify purchasing the system outright (at least not in Ohio). Even with tax incentives/credits, solar panels only make sense if you value the contribution you're making to society enough to justify the poor return on investment.