Renters face the same problem as homeowners - a split incentive problem. Renters don't own the property, so they don't benefit financially from the installation of solar panels. Additionally, most renters won't live in their rental property long enough for solar panels to be of any benefit. 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 can help renters cut their utility bills while also helping the environment. The popularity of community solar is growing and is being offered in more places.
A community solar project usually involves a partnership between a utility company and a third party. Sponsors purchase solar panels from third parties, while subscribers sign leases or power purchase agreements. The subscribers pay a monthly lease fee to sponsor and get credits on their utility bill.
Portable solar panels
A portable solar panel can help you save money when you rent an apartment, condo or room. These panels can easily be mounted to a window or roof, and provide power to multiple devices. The panels are capable of producing between 0.3 and 1.5 Kilowatts (kWh) per day. This is more than enough electricity to power some small appliances. Some portable solar panels are also equipped with battery storage so you can use the power anytime you need it.
Portable solar panels for renters differ from residential solar panels, which must be installed on rooftops. Rooftop solar panels may be more efficient, and can be used for 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 offers a new program called feed-in tariffs to renters. Customers had previously complained about net-metering by the department, which resulted in low returns and poor service. The current pilot program only has 30-50 participants. However, officials hope to expand it. California expects the program to create thousands upon thousands of jobs.
Feed-in tariffs are designed to promote renewable energy production by paying producers at a higher price than the market. These programs are quite popular, even in Germany. They offer renters both an energy guarantee and a long term contract.
Permitting
Certain considerations are required when renting solar. You need to first make sure that your property has been designated for solar panels. This is done through the Department of Planning and Zoning. Then, you need to determine what type of permits review process you need to follow. Be aware of the provisions in the local building code.
Costs
If you are renting your home, you may be wondering how solar panels can save you money. It is possible to lease a panel system from solar companies, but the prices are usually higher than for purchasing it. Also, you'll miss out on incentives offered by the government and local government. Many leases include escalator clauses which reduce your savings. In other words, if your solar panels cost 12 cents per unit of kilowatt hour today, you will pay 18.2 cents for the same amount 10 years later.
Renters have a few options to offset the solar cost. Rent increases and solar feed in tariff credits are two of the many options for solar leasing. The amount of rent increases will depend on the size of your solar project and the value of the land on which you're building it.