Landlords can help their tenants benefit by putting solar panels on their roofs

Landlords can help their tenants benefit by putting solar panels on their roofs, claims a Burton upon Trent energy expert.

Ron Fox said that property owners can both guarantee an increase in their rental returns while also encouraging their occupants to stay long term with cheaper electricity bills.

He said landlords would receive the Feed-in Tariff (FiT) – the amount residents receive for the electricity they put back into the National Grid – which could be worth at least £942 a year and is index linked and guaranteed for 25 years.

At present householders receive 21p per kilowatt hour of solar power but he warned landlords to go green quickly as the rate is due to fall to around 13.6 per kilowatt hour by July.

“Although the Government has made this deal available to private households through the Feed-in-Tariff scheme,” said Ron, “there is no reason why landlords cannot take advantage of it.

“And the tenant will be happier as he or she is receiving lower electric bills, as 50 per cent of that power generated is deemed to have been used at source.”

Ron gives as an example an £80,000 property giving as gross rental of £550 per month providing a 6.25 per cent return.

“Adding solar panels costing from £5,495 could increase this yield to 9.50 per cent by including the index linking of the Feed-in-Tariff – and that’s not factoring in any rises in rental agreement,” said James.

“Another benefit is that the solar panel system could pay for itself in just over seven years.”

Ron’s goal this week will be encouraging landlords to see the advantages of solar panels when he mans an exhibition stand at the Graham Penny house auctions this Thursday (March 29) from 11.30 at the Pedigree Suite in the Pride Park Stadium, home of Derby County Football Club.

Finally, buy-to-let landlords were warned this week that eco-laws on property rental will be tightened up from next Friday.

From April 6 landlords and letting agents will have just seven days to produce an Energy Performance Certificate after they’ve started marketing the property for new tenants, rather than the previous 28-day period.

All privately rented homes in the UK must have an EPC, which sets out information on the efficiency and environmental impact of a property and is part of the Government’s drive to meet national targets to curb carbon emissions.

Also, the full report, which give tenants vital information about the energy efficiency of their property and contain an estimate of their utility bills, must also be provided to prospective tenants rather than just the graph showing energy efficiency, as at present.

“The report also helps landlords make informed decisions about how to upgrade the energy efficiency of their properties by recommending improvements,” said David Salusbury, chairman of the National Landlords’ Association (NLA).

The reports, which cost around £50 to compile, rank each home from A to G and set out typical bills that should be expected.

For more information about Energy Performance Certificates log on to www.landlords.co.uk

For details about solar panels ring Ron Fox on 01782 756995 or request a call back.