How to Solve Landlord/Tenant Disagreements for Solar Installers and Close More Deals

 

Securing new solar clients can be challenging especially when disagreements arise between tenants that want to reduce their energy costs with solar and landlords that don’t want to pay for something they get no material benefit from themselves. Solar installers need to overcome this. But how? 

 

Low Solar Uptake on Rental Properties

It’s much harder to install solar on rented properties than on owner-occupied buildings. As of 2018, 29% of owner-occupied properties have rooftop solar while only 4% of rental properties do[1].  

 

The Key issue of Landlord and Tenant Disputes

The low number of solar installations on rental properties is mostly due to the abovementioned dispute. Tenants are wanting solar to reduce their ever increasing energy costs but the Landlord owns the roof and doesn’t see the point in paying out thousands of dollars for solar for little to no financial return, whilst the tenant gains all the benefits. 

On the other hand, tenants are unwilling to pay for the solar installation on a property they do not own. Here, the misaligned costs and benefits of solar for rental properties are causing a huge obstacle to installation.  

 

Creating a Win-Win Situation for All with Environmental Upgrade Finance

To overcome this dispute, there needs to be a situation where both parties can benefit from the installation. This can be achieved through Environmental Upgrade Finance, a flexible financing option that supports the installation of sustainable upgrades. A Landlord can obtain the system, and benefit from a possible capital improvement to their property, whilst the tenant makes a small quarterly repayment that aligns with the savings the system may generate. 

 

At Sustainable Australia Fund (SAF), we provide up to 100% finance for businesses undertaking solar projects to help them unlock savings and reach their sustainability goals. Our funding and terms are flexible, so most projects can be cash flow positive from day one. Thus, this is a win-win for tenants and landlords and can help resolve disagreements between both parties. 

 

How is EUA Different From Other Finance?

Our finance is enabled by local governments to make upgrade projects affordable for businesses: 

• Up to 100% project finance; 
• Terms of up to 20 years to maximise cash flow; 
• The loan is tied to the property, not the owner 
• Low, fixed-rate interest periods with predictable quarterly repayments made alongside council rates 
• Repayments can be split between landlord and tenant
• No additional personal capital or security required
• We can also fund other elements of a project, such as removing asbestos or reinforcing a roof. These are usually barriers to clients obtaining solar power, but we can help make it happen!
• We also fund battery, EV charging stations or other environmentally beneficial technology as part of the solar proposal.

 

How do Solar Providers Benefit?

You will have the opportunity to offer Environmental Upgrade Finance to your commercial customers. This will allow you to maximise your sales by appealing to both landlords and tenants!

• Close more deals with attractive finance options
• Increase project size and volume
• Grow market share in participating council areas
• Marketing and promotional opportunities through partnering with SAF
• Stand out from competitors
• Become a one-stop shop for a fully financed system

 

Ready to close bigger and better deals?

Get in touch 

1300 432 044 

info@sustainableaustraliafund.com.au 

Reference

[1] Tilbury (2018). The final frontiers of rooftop solar: opportunities for energy entrepreneurs, p. 7, http://energylab.org.au/news