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

Peter Druitt & Co, 81 Louee St, Rylstone, NSW, 2849. Phone: 02 63791409 Fax: 02 6791011

Email: rentals@peterdruittco.com Web: www.peterdruittco.com

Whilst every effort has been made to ensure the accuracy and completeness of the information, no guarantee is given nor responsibility taken by Peter Druitt & Co

<< 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.