Solar for Income Property Investors

Income Property Investors

A solar electric power installation can be a powerful leveraged and tax sheltered investment, and parallels the benefits of owning income-producing real estate.

  • Federal and State tax credits and incentives can pay for more than 100% of solar power installation.
  • Turn rooftop or other unused areas into income producing square footage
  • A solar power plant is an asset that produces free electricity and protects you against inflation.
  • Cash flow from avoided tax money plus other incentives will more than pay for your solar electric power plant–you’ll have a tax free income stream for decades.
  • Use the leverage of borrowed money to produce large ROI percentage.
  • Get positive cash flow from year one with a leveraged purchase.
  • Show your environmental leadership and increase the desirability of your property to tenants.

 Property requirements for a solar installation:

  •  Unshaded south facing roof or ground area of at least 1000 sq. ft.
  • For roof installation, a roof life expectancy of 20 years or more is recommended.
  • At least one electric meter in the property owner’s name.  This is because Washington State’s solar incentives are paid to the registered holder of the electric meter.
    • Some or all tenant electric meters may need to be transferred to name of property owner.
    • Tenant electric usage will need to be added to rents, instead of being paid directly to the utility.  This is how you will receive cash flow from the utility savings of a solar power installation.

 Financial requirements for a successful solar investor:

  • Tax Bracket (marginal tax rate) of 20% or higher
  • Annual tax liability of $10,000 or more, for the next 5 to 10 years.

*Feel free to browse our website.  It contains many pages of information that show how solar can be a great investment.

You can start here

 

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A Solar Investment Project can return large gains from a small cash position

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