Do I Have To Pay The Solar Bill If My Landlord Has Solar Panels On His House?

Solar panels are becoming increasingly popular for homeowners looking to save money on electricity and help the environment. However, if you rent your home, you may be wondering if you have to pay the solar bill if your landlord has solar panels installed. This is an important question for tenants to understand before signing a lease.

What The Law Says

In most cases, tenants are not required to pay for solar panel installation or maintenance costs unless it is explicitly stated in the lease agreement. The general consensus is that solar panels are considered an improvement made by the landlord, not the tenant. Therefore, the landlord is responsible for the associated costs.

However the landlord can pass on the savings from solar energy production to the tenant in the form of lower utility bills. The rent may also be increased to help offset solar panel costs. But the key factor is that these details must be clearly outlined in the written lease agreement and agreed upon by the tenant.

Understanding The Solar Bill

If you move into a rental property with solar panels. you will likely receive two utility bills

• Electric bill – This covers your electricity usage from the utility company The amount may be lower thanks to solar energy production

• Solar bill – This is the charge for using the solar panels installed on the property. It may be sent by the solar company or directly from your landlord.

The solar bill is where confusion often comes in. Tenants may be surprised to get this additional bill if the lease agreement was unclear.

Your solar bill is typically calculated based on the amount of energy produced by the solar panel system each month. This is often estimated based on the system size rather than measured with a meter. The rate per kWh is then applied to determine the total solar charge.

Questions To Ask Before Signing A Lease

If you’re considering renting a property with solar panels, be sure to ask the right questions upfront to understand how the solar billing will work:

• Is the solar bill usage based on an estimate or actual metered production?

• What is the rate per kWh for solar energy?

• How often will I receive the solar bill and when is it due?

• Who is responsible for repairs if the solar panels are damaged?

• What happens if I move out early? Will I be penalized for the solar installation costs?

• Can I see a sample solar bill?

Also carefully read the entire lease agreement before signing. Key things to look for include:

• Is the solar bill mentioned? What details are provided?

• Is there a rent premium or concession to help cover solar costs?

• Are the billing terms and estimated rates clearly defined?

• Who is listed as the owner of the solar panel system?

Getting the specifics in writing is crucial to avoid surprises down the road. Don’t rely solely on verbal explanations from the landlord or property manager.

Options For Tenants

As a tenant, you have a few options if your landlord wants you to pay the solar bill:

Negotiate – Try to negotiate the solar billing details and rates before signing the lease. See if the landlord can provide more favorable terms.

Pass – If you’re not comfortable with the arrangement, you can pass on renting that particular property and keep looking.

Submetering – Ask if the solar panels can be separately metered just for your unit. This way you would only pay for your exact usage, not an estimate.

Credits – See if the lease can include credits, rebates, or production guarantees to offset your solar payments.

Share costs – Offer to split solar costs with the landlord as a compromise. You each pay a portion of the bill.

Check programs – Some utility companies offer solar credits or billing alternatives. Look into available programs before signing.

The more informed you can be as the tenant, the better positioned you are to reach an equitable solar billing solution.

Solar Rights For Tenants

Renters do have certain solar rights that landlords must respect. These include:

• The right to save money with solar panels and sell excess energy back to the grid.

• The right to choose your own solar provider if the landlord’s is too expensive.

• The right to have a solar bill that is transparent and clearly laid out.

• The right to accurate production monitoring, not just estimates.

• The right to have solar costs properly disclosed before signing a lease.

• The right to negotiate solar billing terms rather than being forced into an agreement.

Tenants should not hesitate to exercise these rights when applicable. Get educated on the rules in your state and leverage them in lease negotiations.

Is Solar Worth It For Renters?

At the end of the day, determining if solar panels are worthwhile for you as a renter depends on:

• Cost savings – Is the reduction in your electric bill more than the solar bill?

• Lease terms – Does the agreement adequately protect you from excessive charges?

• Length of stay – Will you live there long enough to reap solar rewards?

• Maintenance – Who handles upkeep so production isn’t compromised?

• Future uncertainty – Could charges rise significantly down the road?

• Environmental impact – Do you want the personal satisfaction of using renewable power?

Crunch the numbers, understand the responsibilities, and decide what makes sense for your situation. With favorable lease terms, solar can provide tangible benefits and be a win-win for tenants and landlords. But ensure you evaluate it carefully before committing.

The most important takeaway on solar billing is to get full clarity from your landlord before ever signing a lease. Never assume you won’t owe the solar payments. Take time to negotiate, ask questions, review the contract, and understand exactly what you are agreeing to. Educating yourself on solar billing as a renter is the smartest thing you can do.