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Starting from 2025, all newly rented properties must meet a minimum EPC rating of “C,” and existing tenancies must comply with this requirement by 2028. But how can investing in solar panels benefit you as a landlord?
Certain landlords may be eligible for free home upgrades through the ECO4 Scheme.
What is the ECO4 Scheme?
The ECO4 scheme is a government initiative aimed at addressing fuel poverty and reducing carbon emissions throughout Great Britain. It assists low-income households in upgrading their energy efficiency. Medium and large energy suppliers fund the installation of energy-efficient home systems under the ECO4 scheme.
To learn more about the ECO4 scheme, please visit the official Ofgem website.
Here are some considerations to keep in mind before installing solar panels on your property:
Save money and generate income: Solar panels can significantly reduce energy bills, leading to increased profits and cost savings over time. While the upfront cost of solar panels may be high, considering their longevity and future savings, it is a worthwhile investment. You can even sell the energy to your tenants, generating additional income for yourself.
Attract tenants: Sustainability has become increasingly important to tenants, and solar panels serve as a significant selling point. By offering an eco-friendly option, you can enhance demand and minimize vacancies, especially during times of rising energy costs and the cost-of-living crisis. If you have already installed solar panels and a tenant intends to vacate the property, they face the risk of significantly increased energy bills, which you should make them aware of. This factor may persuade them to stay, ensuring a steady monthly income for you.
Increase property value: Solar panels add value to properties, making them a smart investment. They provide long-term energy bill savings, which is appealing to potential buyers. Buyers are often willing to pay a premium for energy-efficient and environmentally friendly homes.
Environmental protection: Solar energy is clean and renewable, reducing your carbon footprint and contributing to environmental preservation. This can be a significant selling point for eco-conscious tenants, increasing the likelihood of tenant retention.
Reliable energy source: Solar panels provide uninterrupted power during outages, benefiting tenants with medical conditions. This reliability offers peace of mind and makes your properties more attractive to prospective tenants. If you have tenants with medical conditions, you may be eligible for the ECO4 Scheme.
Long lifespan: Solar panels have a long lifespan and require minimal maintenance, offering benefits for many years. Once installed, tenants do not need to take any action, resulting in minimal disruptions. This makes solar panels a valuable investment that can yield long-term cost savings.
In conclusion, installing solar panels on your rental properties is a wise decision. Solar energy is a sustainable and cost-effective investment, reducing energy expenses, attracting tenants, and increasing property value. With government incentives and their long lifespan, solar panels offer numerous advantages that should be considered.
The government’s website provides a helpful tool that allows you to view the energy certificate of your property (https://www.gov.uk/find-energy-certificate). It also offers guidance on improving your property’s energy efficiency, which is necessary if your rating falls below a “C.”
Failure to comply with the government’s efforts to achieve net-zero emissions by 2050 may result in more substantial penalties, with potential fines of up to £30,000 per property. Currently, this penalty stands at £5,000.
If you find this information helpful, do not hesitate to contact East Yorkshire Solar. We can guide you in the right direction and help you take the necessary steps.