It is the same problem for renters as homeowners: a split incentive. Because renters are not owners of the property, they can't reap the financial benefits from solar panel installation. Additionally, most renters don't stay in the rental property long enough to reap the benefits of solar panels. This split incentive issue is a huge obstacle for renters to get solar.
Community solar
Many renters don't have the space or ability to install solar panels on their roofs. They can still benefit from community-based solar projects. These programs offer renters a way to reduce their utility bills and improve the environment. Community solar is a growing trend, and is now being offered in more communities.
A community project with solar panels is often a partnership between utilities and third parties. A sponsor buys solar panels from a third-party, and subscribers take part in a lease agreement or power purchase agreement. The sponsor charges a monthly fee and subscribers receive credit on their utility bills.
Portable solar panels
If you're renting an apartment, condo, or room, you can save money on your electric bill by setting up a portable solar panel. These panels can be mounted on a window or roof and can provide power to several devices. The panels can produce approximately 0.3 to 1.5 kWh each day. This is sufficient to power small appliances. Many portable solar panels have battery storage, so you can always use the power whenever you need it.
Solar panels for rent are different to residential panels which must be placed on rooftops. Rooftop solar panel are more efficient than rooftop panels and can be used in larger systems. There are many portable solar panels available for rent, and Renogy has a selection of kits for homeowners.
Feed-in tariffs
Los Angeles Department of Water and Power has a new program offering renters feed in tariffs. Customers complained that net-metering was not a good program and resulted in poor service. The current pilot program only has 30-50 participants. However, officials hope to expand it. California is expected to see thousands of new jobs created by the program.
The idea behind a feed-in tariff is to encourage renewable energy production by paying producers above market price. These programs are very popular in Germany and many other countries. They provide tenants with both a reliable source of energy as well as a long-term rental contract.
Permitting
You need to take certain precautions when permitting solar for renters. You first need to ensure your property is zonable for solar panels. This is done via the Department of Planning and Zoning. Then, you need to determine what type of permits review process you need to follow. It is also important to know the details of the local building codes.
Costs
If you are renting your home, you may be wondering how solar panels can save you money. You can lease a solar panel system but it will cost you more than if you bought it. Incentives from the government and local governments will also be lost. Moreover, many leases have escalator clauses that reduce the savings you make. For example, if your solar panel costs 12 cents per kilowatt-hour today, you'll pay 18.2 cents per kilowatt-hour in 10 years time.
Renters have a few options to offset the solar cost. Solar leasing options often include rent increases or solar feed-in tariff credit credits. The size of your solar project as well as the land value will determine the amount of rent increase.