Solar Electricity

Reduce operating expenses and maximize revenue from your rental property with the power of the sun.

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Benefits of Solar Electricity

How Solar Electricity Works

Incentives and Financing

Solar Electricity Articles

Benefits of Installing Solar

Solar electric systems for rental properties reduce common area electricity expenses and generate income with the power of the sun.

Reduce your energy costs

Solar reduces common area electricity costs.

Lower pollution

Protect the climate by generating your own clean electricity.

Ongoing revenue

Earn-as-you-produce income for 20 years through the SMART program and/or a rent level that reflects the added value of energy savings.

Increase exit value and marketability

On-site solar can raise your property’s value and its marketability should you decide to sell.

The Technology

How It Works

Solar panels convert sunlight into electricity to power parts of a multi-unit property. Solar electricity is ideal for properties with available roof or ground space and good sun exposure.

Solar electric system for a landlord-owned apartment building

Solar electricity and battery storage can provide significant savings for common area electricity costs.

Solar electric system only

Solar electric system for a landlord-owned apartment building serving common area electrical circuits only

Legend:

Green Lines and Arrows
Depict the flow and direction of solar-supplied clean electric energy.
Red Lines and Arrows
Depict the flow and direction of utility grid-supplied electric energy.
The Solar String Inverter
Converts DC (direct current) solar energy to AC (alternating current) energy for use by building appliances.

The Solar Production Meter
Quantifies the amount of onsite solar energy generated for compensation purposes by the SMART incentive program.
The Common Area Electrical Panel
Supplied by two sources—both solar and utility grid—to help ensure that common area electrical circuits remain active at all times.
The Common Area Electric Meter
Bidirectional net meter that advances in a forward direction whenever utility grid power supplies the building, and correspondingly runs in reverse whenever real-time solar energy generation exceeds the then-current needs of common area circuits.

Solar electric system with battery storage

Solar electric system with battery storage for a landlord-owned apartment building serving common area electrical circuits only

Legend:

Green Lines and Arrows
Depict the flow and direction of solar-supplied clean electric energy.
Red Lines and Arrows
Depict the flow and direction of utility grid-supplied electric energy.
Solar String Inverter
Converts DC (direct current) solar energy to AC (alternating current) energy for use by building appliances.
Solar Production Meter
Quantifies the amount of onsite solar energy generated for compensation purposes by the SMART incentive program.
Storage Batteries
Storage batteries are charged with solar energy and can be configured to discharge their stored energy during utility power failures and/or to supply nighttime time-shifted solar energy to the building.
Common Area Electrical Panel
The common area electrical panel is supplied by two sources—both solar and utility grid—to help ensure that common area electrical circuits remain active at all times.

Common Area Electric Meter
A bidirectional net meter that advances in a forward direction whenever utility grid power supplies the building, and correspondingly runs in reverse whenever real-time solar energy generation exceeds both the then-current needs of common area circuits and battery recharge.
Microgrid Interconnect Device
Performs several key functions related to the inclusion of battery storage in this solution:
- Instantly detects the loss of utility grid power during a power outage.
- Engages and controls the use of both real-time solar generation and battery discharge to supply backup power to essential electrical loads in the building during the outage (e.g., heating/cooling, refrigeration, lighting, Internet, water pumps, sump pumps, etc.).
- Allocates the distribution of real-time solar energy generation between essential load backup and battery charge replenishment.
- Detects utility grid power restoration and resumes normal operation.

Battery storage (without a solar electric system)

Battery storage (without a solar electric system) for a landlord-owned apartment building serving common area electrical circuits only

Legend:

Red Lines and Arrows
Depict the flow and direction of utility grid-supplied electric energy.
The Microgrid Interconnect Device
Performs several key functions related to the inclusion of battery storage in this solution:
- Instantly detects the loss of utility grid power during a power outage.
- Engages and controls the use of battery discharge to supply backup power to essential electrical loads in the building during the outage (e.g., heating/cooling, refrigeration, lighting, Internet, water pumps, sump pumps, etc.).
- Detects utility grid power restoration and resumes normal operation.

The Storage Batteries
Charged with utility grid energy and can be configured to discharge their stored energy during utility power failures and/or to supply nighttime time-shifted stored energy to the building.
The Common Area Electrical Panel
Supplied by two sources—both battery storage and utility grid—to help ensure that common area electrical circuits remain active at all times.

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Video

How Solar Panels Work

EnergySage | 1 min

Solar panels are made of silicon. When sunlight hits a solar panel, electrons in the silicon begin to move, initiating a flow of electricity.

Is Your Property a Good Fit for Solar?

Calculate your solar panel savings

Use this solar panel calculator from EnergySage to quickly estimate your solar potential and savings by address. Estimates are based on your roof, electricity bill, and actual offers in your area.

Go to EnergySage to Check your Roof

Calculate your solar panel savings with this calculator by EnergySage.com

Incentives and Financing

Federal Tax Credits

30% tax credit for commercial solar installations through Internal Revenue Code § 48E Clean Electricity Investment Tax Credit

Depreciation deduction based on the cost of the solar project and the landlord’s tax bracket through Internal Revenue Code § 168 Modified Accelerated Cost Recovery System

Mass Department of Energy Resources (DOER)

Solar Massachusetts Renewable Target (SMART): SMART is the primary incentive program for solar electric projects at properties serviced by National Grid, Eversource and Unitil.

Municipal Light Plant

If you live in a town served by a Municipal Light Plant (MLP) check your MLP’s website for incentives and rebates.

EXAMPLE SOLAR ELECTRIC FINANCIALS FOR A LANDLORD
WHO OWNS A TRIPLE-DECKER APARTMENT BUILDING
WITH A 1,500 FT² FLAT ROOF

Cost after acquisition incentives is estimated by subtracting the federal Clean Electricity Investment Tax Credit and the federal Modified Accelerated Cost Recovery System depreciation deduction from the upfront solar electric system cost.

A 1,500 square foot flat triple-decker roof may generate 12,000 kWh per year with a 12kW solar electric system, projected to save $4,200 in common area electricity expenses and yield $360 in SMART income in its first year of operation alone.

Projected cumulative operating expense savings of common area electricity charges over 20 years

$216,000

Payback of net upfront investment expense

Within 4 years

Projected cumulative SMART income over 20 years

$9,100

Cumulative cash flows over 20 years

>$200,000

For the calculations that underlie this analysis, go to Economics of Solar for 1-4 unit Building Owners.

Learn more about incentives and explore financing options

Learn More

Things to Consider

If you answer yes to ANY of these questions, then solar electricity is a good fit for your rental property

Do you want to save money on your property’s operating costs?

By generating your own electricity with solar, you can dramatically reduce or eliminate your property’s common area electricity expenses. In months when your property’s solar panels produce more electricity than the common area uses, you can even receive a credit from your utility!

Do you want to generate more revenue from your property?

Depending on your utility, ongoing credits based on the amount of clean energy generated by your system can provide additional revenue from your investment property.

Do you have available roof or yard space with good sun exposure?

Solar electricity requires good sun exposure for at least 6 hours a day and adequate roof or yard space for panels.

Do you want to reduce your rental property’s reliance on fossil fuels?

By installing solar panels, you can power all or a portion of your building’s common area electricity consumption with affordable clean energy.