Adding Solar Power: A Cost-Saving Measure for Multifamily Properties

29 July 2025

Let’s be honest—electricity bills can be brutal, especially when running a multifamily property. You’ve got common areas, hallways, laundry rooms, leasing offices, and dozens (or even hundreds) of units pulling power around the clock. Over time, those utility costs add up and eat into your bottom line. But what if you could slash those energy bills, add value to your property, and step into the green future—all at once?

That’s where solar power comes in. And no, it’s not just a feel-good option for eco-friendly single-family homes. Multifamily property owners are waking up to the benefits of solar, and it's not just about saving the planet—it's about saving serious money, too.

Let’s break it all down.

Why Solar for Multifamily Properties?

You might be wondering, “Is solar really worth the investment for an apartment complex?”

Short answer: Absolutely.

Multifamily properties—like duplexes, townhomes, apartments, and condos—are energy-hungry. They require continuous power for lighting, HVAC systems, elevators, and countless gadgets tenants plug in daily. All that energy adds up to big bills.

By installing solar panels, you generate your own electricity and rely less on utility companies. That means using clean, renewable energy for your property and potentially reducing—or even eliminating—monthly energy costs.

It’s like turning your rooftop into a mini power plant that pays you back.

Solar Power Reduces Operating Costs

Let’s get real—expenses are the villain in every landlord’s story. But power bills? They’re the monster hiding under the bed.

Solar power can significantly reduce your operating costs. Once your panels are installed and paid for, the sun starts working for you—for free.

While utility rates keep going up year over year, solar locks in your energy costs. You won’t be at the mercy of rate hikes or seasonal energy spikes. Over the years, these savings can pile up to tens or even hundreds of thousands of dollars, depending on your property size.

And let’s not forget those common areas. Lighting for stairwells, garages, clubhouses—those can all run on solar without you ever seeing a utility bill for it again.

Tax Incentives and Rebates Sweeten the Deal

You don’t have to go it alone when funding your solar project. Uncle Sam wants you to go green—and he’s willing to pay for a chunk of it.

Right now, you can snag the federal Investment Tax Credit (ITC), which lets you deduct 30% of the cost of installing a solar energy system from your federal taxes. That’s a massive discount, straight from the government.

And depending on where your property is located, you might qualify for state rebates, utility incentives, or renewable energy credits. Some cities even offer property tax exemptions or fast-track permitting for solar projects.

These incentives can stack up and drastically reduce your upfront cost. So, if you’ve been on the fence, now’s the time to hop off and do a happy dance.

Boosting Property Value and Appeal

Here’s a juicy little secret: tenants love green properties. They've read the headlines, watched the documentaries, and now they want to live more sustainably.

Solar-powered apartments attract eco-conscious renters who are willing to pay a premium for green amenities. Offering solar energy can also help reduce tenant utility bills, which makes your apartments more attractive compared to the competition.

More renters? Lower vacancy rates? Higher rents? Yes, please.

And it’s not just tenants paying attention. Investors love properties with lower operating costs and sustainable features. Adding solar can increase your property’s appraisal value—making it more attractive if you ever decide to sell or refinance.

It’s a win-win—more cash flow now, more equity later.

Net Metering: Get Paid for Extra Power

Ever heard of net metering? It’s a game-changer.

When your solar panels produce more electricity than you use, the surplus gets sent back into the grid. In return, many utility companies will credit your account or even pay you for that extra power.

That’s right—the power company might end up owing you money.

Imagine generating more power than you need during sunny summer months and banking those credits for winter. Net metering helps balance your energy usage throughout the year and maximizes your solar system’s value.

Not every state offers net metering, but many do. Be sure to check your local regulations—it could mean the difference between good returns and great returns.

How to Get Started with Solar on Multifamily Properties

Thinking about flipping the switch to solar? Here’s a quick roadmap.

1. Assess Your Roof Space

Not all roofs are created equal. A south-facing flat roof with minimal shade? Perfect. A steep, shaded roof with chimneys and vents everywhere? Not so much.

Before jumping in, get a professional solar assessment. They’ll check your roof’s condition, angle, and sun exposure and tell you how many panels it can support.

2. Understand the Property’s Utility Setup

One major factor is how your utilities are structured. Are tenants individually metered, or is there one master meter?

Solar works differently in each case. For master-metered properties, the setup is straightforward—the panels help offset your entire property’s power bill. For individually metered units, you’ll need to explore solutions like virtual net metering, which allows solar credits to be distributed among tenants.

3. Choose the Right Solar Installer

This one’s huge. You don’t want just any contractor throwing panels on your roof.

Do your homework. Read reviews, ask for references, and choose a company that’s experienced with large-scale, multifamily installations. They’ll help design a system that fits your property, handles permitting, and navigates all the red tape.

4. Secure Financing or Leases

Can’t pay for it all upfront? No problem.

There are several financing options, including solar loans, leases, and power purchase agreements (PPAs). Some allow you to install solar with little to no money down. Just make sure you understand the long-term cost and ownership structure.

Common Solar Myths—Busted

Still a little skeptical? Let’s tackle a few common myths:

“Solar is too expensive.”
Not anymore. With tax credits, rebates, and financing, upfront costs are much more manageable. Plus, the long-term savings often outweigh the initial investment.

“It won’t work on cloudy days.”
Solar panels work even when it's cloudy—just less efficiently. You’ll still generate power, and any shortfall can be covered by the grid.

“Maintenance is a hassle.”
Actually, solar systems have no moving parts and require minimal upkeep. Occasional cleaning and an annual inspection are usually enough to keep things smooth.

Long-Term ROI: Thinking Beyond Today

This isn’t just about cutting this year’s budget. Going solar is a long-term play.

You’ll lock in energy savings for 25 years or more. That’s a quarter-century of lower bills. Plus, your property value increases, your rent potential goes up, and your NOI (Net Operating Income) improves—music to any investor’s ears.

And let’s not ignore the marketing clout. "We’re solar-powered" is a brag-worthy feature that sets your property apart in a tough rental market.

Is Solar Right for Every Multifamily Owner?

Let’s keep it real—solar isn’t a one-size-fits-all solution.

If your roof is too small or fully shaded, solar might be a tough sell. Some older buildings may require upgrades before installation. And in some states, policy and incentives just aren’t as strong.

But if your property checks the right boxes—adequate sun, good roof space, and the right utility setup—solar is definitely worth exploring.

Final Thoughts

Adding solar power to multifamily properties isn’t just a green move—it’s a smart financial decision. Between reduced energy bills, tax incentives, higher property values, and lower vacancy rates, it’s a power play that pays off in more ways than one.

Sure, it takes some planning and upfront investment, but the long-term benefits are hard to ignore. Whether you’re a seasoned investor or just starting in the multifamily game, solar is a savvy way to future-proof your property, cut costs, and stand out from the crowd.

So, why let your roof sit there doing nothing? Turn it into a money-maker with solar power.