Solar Panels on Rental Properties: A Guide to Billing and Tenant Satisfaction

Idan Shahar
Updated on
October 18, 2023
5 min read


In today's rapidly changing world, the adoption of sustainable energy solutions is not just a preference; it's an imperative. As a landlord, the decision to install solar panels on your rental properties is a commendable step toward sustainability. However, it brings with it a unique set of challenges. One such challenge is how to fairly charge tenants for the solar energy they consume while ensuring tenant satisfaction. In this blog post, we'll explore the various facets of this challenge and discuss the best methods for handling billing in a way that benefits both landlords and tenants.

The Challenge of Billing

Solar panels on rental properties present an opportunity for both landlords and tenants. Landlords can generate income through excess energy production and potentially increase property value. Tenants benefit from lower electricity bills and a reduced environmental footprint. However, to make this arrangement mutually beneficial, landlords must devise a fair and transparent method for billing tenants.

The Best Methods for Handling Billing

  1. Consumption-Based Billing: The most equitable approach is consumption-based billing. This method calculates tenants' electricity usage without factoring in the solar panels' contribution. This way, tenants pay only for the energy they consume, just like they would if there were no solar panels. It encourages energy efficiency and ensures fairness.
  2. Discounted Rates: To incentivize tenants to embrace solar energy and reduce their carbon footprint, some landlords choose to offer discounted rates for the solar electricity consumed. This can be a win-win situation where tenants enjoy cost savings while landlords continue to benefit from solar income.
  3. Transparent Payment Distribution: It's crucial to maintain transparency in payment distribution. Ensure that tenants understand the breakdown of their electricity bill. For example, the electricity provider is paid for the electricity they supply, while the income generated by the solar panels goes directly to the landlord.


The journey toward sustainability through solar panels on rental properties is filled with potential benefits for both landlords and tenants. However, the challenge of charging tenants fairly for solar energy consumption should not be underestimated. By adopting consumption-based billing, offering discounted rates, and maintaining transparency, landlords can create a harmonious relationship with tenants that fosters sustainability, lower energy costs, and overall tenant satisfaction.

For a more detailed discussion on how to effectively charge tenants for solar energy, be sure to check out our blog post: How to Charge Tenants for Solar Energy. In this guide, we delve into various methods and best practices for billing tenants for the solar energy they consume.

In this way, solar panels on rental properties become a symbol of both environmental responsibility and financial prudence, ensuring a brighter, greener future for all.

Idan Shahar
CEO & Co-Founder