Supporting the argument for property owners to install solar panels is the current increased government rebate for energy credits supplied to the grid from the property. The rate of return is currently at a premium with expectations it will reduce again in 2012. With this incentive expiring shortly, many landlords have taken the opportunity to ‘solar up’ their investment properties now. With the huge cost of actually buying and installing solar panels, the ability to turn energy credits into cash for landlords is attractive. As we enter the new age for energy on our planet, it is surprising to note that recent changes to the residential tenancy legislation, in several states, do not reflect what is happening in reality for landlords and tenants. Of particular interest are solar panels. The argument to install solar panels as the source of a property’s energy is a good one, in fact there’s not really a debate for the efficiency. There is, however, uncertainty over who pays ‘going forward’ - when the property is tenanted. So far so good. The difficulty for landlords however comes in several forms: 1. The current government incentive requires that the electricity is connected to the person’s name who is to receive the increased rebate. Therefore the landlord. Can a tenant be charged for electricity when the account is not in their name? 2. A landlord’s credits on a solar energy invoice are considered income and therefore taxable. Accordingly, should the reduced amount be passed on to the tenant, when the landlord is >> Located in Venice, California, the Solar Umbrella House was designed by award-winning architects Lawrence Scarpa and Angela Brooks as their own residence. The major design feature is a shading solar canopy which uses 89 amorphous photovoltaic panels to transform the sunlight into usable energy, providing 95% of the residence’s electricity. Your shot of property management news for November 2011 81 Louee St Rylstone NSW 2849
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PDC Rylstone Property Management Newsletter November 2011
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<< recover the cost of the investment of
the solar panels?
3. What is the right amount to invoice
a tenant for solar energy?
Fortunately two recent rulings at the
Consumer Trader and Tenancy Tribunal
in NSW have delivered some precedents
to answer these questions for us and
provide some muscle to these debates as
they arrive in our businesses.
Coggins Versus Johnstone
Application for tenant to pay the entire
electricity invoice despite being in the
landlords name and the property having
solar panels installed.
Orders: Section 38 of the Residential
Tenancies Act 2010 provides the tenant
is to pay for electricity charges where
the electricity is metered for the
premises. This is mirrored in Section 72
of the Electricity Supply Act 1995. The
landlord is not to profit from the charge
of electricity to the tenant. lt is noted
that the landlord in this matter has
installed solar panels to the roof of the
premises and receives a benefit for this
against any account.
Miller Versus Coleman
Application for Landlord to pass on the
reduced amount of the electricity
invoice to the tenant despite the invoice
being in the landlords name.
Orders: Where a reduced amount exists
for a utility account to a landlord, for
whatever reason, the reduced amount
must be passed onto the tenant.
Therefore, the amount the landlord pays
is the amount the tenant pays. Tenant
must pay for reduced electricity invoice
where solar panels are installed.
What is the pricing structure for the
installation of solar panels?
A rough range for upfront costs including
installation, solar panels, inverter box,
wiring, etc., is approximately $30,000 for
a single family house, if you are looking to
entirely replace grid-based electricity with
solar energy. Your particular needs may
range higher or lower.
WINNERS ARE GRINNERS!
Peter Druitt & Co Rylstone had a fantastic response to their colouring in competition, run to
celebrate Children’s Week, an annual event celebrated in Australia. Children’s Week
celebrates the rights of children to enjoy childhood and is a time for children to demonstrate
their talents, skills and abilities.
The talents of the children of Kandos Public School were celebrated indeed, with some
fantastic entries submitted across the classes! There were nearly 50 entries received, and the
standard of the work was excellent, making the decision for the judges very difficult.
In the end one winner from each age category was chosen, and each child was awarded with a
prize pack containing crayons, textas, pencils and craft projects. The lucky winners were: Age
4-7 years, Finn Stanfield; Age 8-10 years, Maddison Gleeson and Age 11-13 years, Bethany
Darlington.
The winning entries will be displayed in the window of the Peter Druitt & Co Rylstone office for
one week, and the rest of the entries will be displayed in the office, so pop along and have a
look if you are in town!
IT’S HAPPENED AGAIN!!!
Once again, we have run out of rental properties!!! There is no room at the inn!!
Every house we manage at the moment is tenanted. We are desperate for more properties, as we have tenant
enquiries on a daily basis and are unable to assist. If you are considering adding to your property portfolio NOW IS
THE TIME as demand only increases towards Christmas and New Year.