Commercial Solar Systems Allow Property Owners to Convert Unused Roof Space into Long-Term Cost Stability
Increased Property Value
Solar can be a long-term property improvement that adds value while helping reduce ongoing energy costs.
State and Other Incentives
Eligible rental properties may be able to use the available state and other incentives to offset the costs to go solar.
LEED Certification
Adding solar can support sustainability goals & contributes earning LEED certification for qualifying properties.
Depreciation Expense
Qualifying solar equipment may be eligible for depreciation, giving you an additional potential tax benefit.
For rental property owners, going solar is about more than generating electricity. How the property uses energy, who pays the utility bills, the number of units, available installation space, and your long-term plans for the property can all influence the value a solar system provides.
That’s why every rental property requires a closer look before deciding how – or whether – solar fits into the investment. Solar by CIR can evaluate the property, its energy needs, and your goals to help determine an approach that makes financial and practical sense.
Explore Solar Options for Rental Properties
There are two primary ways of bringing the benefits of solar to your rental property
Rooftop Solar
The roof on your rental property may be the best home for a custom-designed solar system
Put unused roof space to work by generating electricity right at your rental property. Rooftop solar can be an especially practical option for apartment buildings, multifamily properties, and other rental properties with sufficient roof space and sun exposure.
A rooftop system can be designed around the property’s available space and electricity needs while keeping panels out of tenant areas and preserving usable land. Depending on how electricity is metered at the property, solar may be used to offset common-area usage or other eligible electrical loads.
Rooftop solar may be worth exploring if your property has:
Make Better Use of the Roof You Already Have
For rental and investment properties, unused roof space can become an opportunity to generate electricity
without taking up valuable space elsewhere on the property. Rooftop solar may be worth exploring if your property has:
✓ Adequate roof space with limited shading
✓ A roof in good condition
✓ Favorable sun exposure and orientation
✓ Electricity usage that can be offset by solar
Ground-Mount Solar Installations
When the roof over your rental property isn’t the right fit, look to the ground
For rental properties with available land, ground-mounted solar provides an alternative when rooftop installation isn’t the best fit. Panels can be installed in an open area of the property, allowing the system to make use of available space without relying on the building itself.
Ground-mounted systems also offer more flexibility when it comes to system size and placement. This can make them a practical option for larger rental properties with greater electricity needs or limited usable roof space.
Make More of the Land Around Your Property
With more freedom in where and how a solar system is installed, you can build around your property rather than being
limited by the size, orientation, or condition of the roof. Ground-mounted solar may be a good fit if:
✓ Greater control over panel positioning
✓ Optimization with a solar tracking system
✓ Better power production by following the sun
✓ Higher energy savings achieved more quickly
Our Energy Advisers Can Help You Decide Which Setup is Best for You
Solar Panel Financing for Income Properties
Installing solar is an investment in your property, but that doesn’t necessarily mean covering the entire cost upfront. Financing can help make a project more manageable by spreading the cost over time while allowing you to begin benefiting from the electricity your system generates.
The right financing approach will depend on the size of the project, your budget, and your long-term plans for the property. Solar by CIR works with financing partners to help rental property owners explore available options and determine what makes the most sense for their investment.
Financing can also give property owners greater flexibility when planning other improvements or managing capital expenses. Instead of tying up funds in a single project, you can consider how solar fits alongside your other priorities for the property.
Want to Know How Much Solar Might Cost for Your Property?
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Learn More About Solar Panels for Rental Properties
Interested in learning more about solar for your rental property? Read one of our free resources.
Residential Solar FAQs
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Can I Put Solar Panels on My Apartments?
If you rent your apartment, your landlord’s permission will be needed in order to move forward with any type of solar project on the property they own. This handy info sheet can help answer your landlord’s questions about installing solar panels on your apartment building.
If you are unable to get permission from the landlord, you may also consider opting into a nearby Community Solar array if you are responsible for paying for your electricity.
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Does New York State Offer a Tax Credit for Solar Installation on Rental Properties?
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Yes, New York State offers a tax credit on solar and rental properties of 25% up to $5,000. While New York State does require the property to be a primary residence, the tax credit is still available for owner-occupied two-unit properties.
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Yes, New York State offers a tax credit on solar and rental properties of 25% up to $5,000. While New York State does require the property to be a primary residence, the tax credit is still available for owner-occupied two-unit properties.
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Yes, New York State offers a tax credit on solar and rental properties of 25% up to $5,000. While New York State does require the property to be a primary residence, the tax credit is still available for owner-occupied two-unit properties.
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Yes, New York State offers a tax credit on solar and rental properties of 25% up to $5,000. While New York State does require the property to be a primary residence, the tax credit is still available for owner-occupied two-unit properties.
- Yes, New York offers a tax credit on solar and rental properties of 25% up to $5,000. While the state does require a property to be a primary residence, the tax credit is still available for owner-occupied, two-unit properties.
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My Property is a Non-Owner Occupied, Two-Unit. Can I Still Qualify for the State Tax Credit?
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No, the New York State solar tax credit is only available for commercial and rental properties that are a primary residence, or an owner-occupied two-unit.
- No, the New York State Solar Tax Credit is only available for commercial and rental properties that area a primary residence, or an owner-occupied, two-unit.
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How Long Can Solar Installation Be Depreciated?
Commercial solar installations can be depreciated over 5 years, during which time you can claim a 10% decline in your solar system’s value each year through the depreciation value method. For example, if you invested $6,000 in a new solar system, you could claim $600 in the first year, $540 during the second year, and so on.
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How Much Residential Solar Battery Storage is Required?
No storage is required due to NYS net metering.