Solar Panels for Colorado House

September 24, 2022 9:02 AM

Does it matter, with respect to finances, whether: - solar panels are installed while I rent it or while I live in it? - solar panels are installed now (in 2023) or in 4 years?

I own the house outright. Located in Manitou Springs, Colorado. I currently live out of state and rent it. I plan on living in it in about 4 years

By finances, I largely mean taxes and tax incentives but I am interested to hear about anything you might know

posted by falsedmitri to Home & Garden (4 answers total)

Do your tenants pay their own electricity bill or do you include electricity in the rent? I think that's going to make a difference for at least two reasons:

1) If they pay for their own electricity they would presumably get the cost savings from the panels for themselves while they were renting (you could tinker with the way you price the rent but a higher rent might make the house seem less attractive even if the end cost to the tenant was the same).

2) I don't know about Colorado but in Massachusetts, where I am, a lot of rebates, zero-interest loans, etc., are available *to current customers of the electrical utility*.
posted by mskyle at 9:24 AM on September 24, 2022 [1 favorite]

The residential federal tax benefits do not apply to rental property according to this page:
https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics

Scroll down to the question "I installed solar PV on my vacation home in the United States?"
posted by soelo at 11:14 AM on September 24, 2022 [3 favorites]

Colorado no longer has a state-level program; this Manitou Springs rebate program will "continue through the end of 2022, or until the budgeted amount runs out" and is limited to residents. If you know which system you'd install, the company selling it (examples) will have information, too, as will the local utility company. (You'd double/triple check the rebate and tax calculations.) For instance, for CSU customers: "We do not anticipate offering a solar energy rebate in 2023... system must be approved, installed, final invoice, installation verification provided, and given permission to operate from us by December 1, 2022 to obtain rebate." EnergySage's "Colorado Incentives" page, the SunRun company, & Eco Watch have links.
posted by Iris Gambol at 11:35 AM on September 24, 2022 [1 favorite]

Solar costs are coming down at a rate of about 10% per year. Tax and environmental benefits aside, if your tenants pay their electrical bill, and if you install now rather than 4 years from now, you're paying about 50% more than you need to for that system.
posted by NotMyselfRightNow at 1:19 PM on September 24, 2022 [2 favorites]