Splitting utilities with Solar?

Question

I installed solar few months ago; now looking to house hack large basement. Solar generates aprox $250/mo in credits; some months I generate more than I use, so bill is $0, other months bill varies b/c I use more than I generate (think winter), some months I use excess credits generated from other months (say May I generate more than I use, but June I use more than I generate), but it's still $0 b/c just using those excess credits. Avg across all months (from a year of generation) is $250/mo in credits. I want to get my investment back out of this solar however b/c obviously I had to pay a large cash chunk for the original investment. However, how would one suggest a tenant paying for electricity? Also, tenant would be using about 35% of space, me 65%. Would you set an approximate (pre-solar) flat rate cost they pay regardless or would you split any costs with them 35/65 (above the $250avg) and have them also contribute 35% of that $250 (so that it would be like a pre-solar cost percentage split)

Ryan Thomson · Answer

@Kezia Edmonson I completely agree with @Bill Brandt when he says "Unless you think they’re going to abuse the utilities I would give them a utilities included price. Otherwise you’ll be breaking out the garbage, sewer, water, heating, cable tv, etc."

Usually, I don't live including utitlies because it doesn't incentivize tenants to use less. However, in this case I would choose to bump up the rental payment and say utilities are included. You can charge whatever you want for that. If you choose to raise it too much the market will tell you b/c you won't find a tenant.

Since you already have a tenant that may be tricky bc he's already on a lease.

Brandon Gale · Answer

If you don't have separate meters for utilities, it should all be included for them and you should adjust the rent accordingly.

In my opinion, too messy to try and figure out splits in utility bills when everyone uses different amounts of each. Things like TV or WIFI could be split in half, but electricity, water/sewage, heating, are all too difficult to find a fair split.

Bill B. · Answer

Unless you think they’re going to abuse the utilities I would give them a utilities included price. Otherwise you’ll be breaking out the garbage, sewer, water, heating, cable tv, etc.

Utility usage will probably have nothing to do with percent of space. A basement will use less electricity for cooling but might use more gas for heating depending on the local climate. The percent of people would determine water usage more than space, and so on.

I would assume someone renting a room is price conscious and wants a solid “this is what my housing costs per month” number.

Splitting utilities with Solar?

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