How to Structure Solar Panels into the Lease

[Andrew T.]

How dose one incorporate Solar panels into the lease, in terms of tenant paying the electric utility? Specifically, I am planning to rent out my home which I own solar panels and currently have a loan ending in 5 years. Our electric utility Co. charges me for the months which my electric usage is greater than the electricity generated by my panels, typically during the winter months. The electric utility has to stay under my name so that I can track and apply for Solar Credits monthly.

Should I simply charge a flat monthly fee for electricity? Would love to know what others have done!

[Kevin Sobilo]

@Andrew T., if your bill is broken out sufficiently I'm betting you know how much the bill would be WITHOUT the solar. If so, just bill them back that amount each month. I use apartments.com so my tenants can do online bill payment. So, billing back isn't too onerous for me.

However, if that sounds like too much of a hassle, I would just estimate the average yearly usage and factor it into the rental price and include electricity with the rent. Then just do an annual review of usage at lease renew time to see if any adjustments need to be made.