Solar panel setups on various properties can create several kinds of financial benefits, and not just for traditional single-family homes. More and more in recent years, owners and managers of multi-family units like apartment buildings have been installing solar panels. Doing so can provide several financial incentives, making it a smart move for property owners and managers.

At Intermountain Wind & Solar, we're happy to serve as one of the top solar companies in Salt Lake City, Utah and Boise, Idaho areas, providing everything from residential and commercial solar installation services to solar financing assistance and much more. Here are some of the different ways solar panels show financial benefits for multi-family units, both for property owners and tenants alike.

Tax Credits and Incentives

Virtually every tax credit or incentive that's available to single-family homes or other commercial properties will also apply to apartments or other multi-family units. In fact, these properties may even be able to take advantage of certain local programs specifically designed for multi-family solar setups.

Tax incentives like the Solar Investment Tax Credit (ITC) can provide significant benefits for property owners, allowing them to deduct up to 30% of their total solar installation costs from their federal taxes. There are also many local and state incentives that vary based on location, which can provide additional financial benefits.

Reduced Energy Costs

One of the most obvious financial benefits of installing solar panels on a multi-family unit is the significant reduction in energy costs. For property owners, this means lower utility bills and increased cash flow. And for tenants, it means lower monthly rent payments or no cost increases due to rising energy rates. Over time, these savings can add up to significant amounts of money.

This is especially beneficial for low-income and affordable housing units, where energy costs can be a major burden on residents. Rather than passing these costs onto tenants, installing solar panels can help alleviate this burden and provide more affordable housing options.

Increased Property Value

In addition to cost savings and tax incentives, solar panel installations can also increase the overall value of a multi-family property. This is because many potential buyers or renters are now looking for eco-friendly and sustainable features in their living spaces. By having solar panels already installed, the property becomes more attractive and valuable to these types of individuals.

For instance, many prospective tenants will be willing to pay more for a rental unit with lower energy costs and a smaller carbon footprint. And when it comes time to sell the property, having solar panels in place can make it stand out among other listings.

Net Metering

In places where net metering is available, multi-family units with solar panels can participate in this program and potentially receive credits from their utility company for any excess energy they produce. This means that even on cloudy or low-sun days, the property may still be able to generate some of its own energy and benefit financially from it.

Specifically, the rise of what's known as virtual net metering has had a major impact on multi-family buildings and neighborhoods. This program enables multiple meters on a single property for tenants to view, plus enables a distribution of weighted credits to building owners who are not directly connected to the solar panels on their own property.

Reducing Environmental Footprint

By installing solar panels on multi-family units, property owners can also demonstrate their commitment to reducing their environmental impact and promoting sustainability. This can help attract eco-conscious tenants and investors, further increasing the value of the property.

Additionally, with more people living in one building or complex, the overall reduction in energy use can have a significant positive effect on the environment. With climate change becoming an increasingly urgent issue, taking action like installing solar panels is not only beneficial for financial reasons but also for the greater good of our planet.

There are numerous financial incentives and benefits for property owners and managers who choose to install solar panels on multi-family units. From tax credits and reduced energy costs to increased property value and environmental impact, it's clear that solar panel setups are a wise investment for these types of properties.

As one of the top solar companies in the Salt Lake City and Boise areas, Intermountain Wind & Solar is dedicated to helping multi-family units reap these benefits and make a positive impact on our world. Contact us today to learn more about our services and how we can assist with your solar installation needs.