How Can Landlords Benefit From Solar in California and Texas?
As solar energy becomes more affordable and accessible, both landlords and tenants are beginning to ask the same question:
“Can rental properties go solar — and who really benefits?”
Let’s break down how solar works for rentals, what to expect in California and Texas, and why investing in solar could boost both your property’s value and your tenants’ satisfaction.
Why Solar Makes Sense for Rental Homes
Electricity prices have been rising steadily across the U.S., especially in California and Texas — two of the nation’s sunniest states.
| State | Average Electricity Rate (2025) | Avg. Monthly Bill | Solar Potential |
| California | $0.30/kWh | $180–$220 | Excellent (High sun hours) |
| Texas | $0.15/kWh | $160–$200 | Very Good (High sun + long summers) |
Installing solar panels allows property owners to:
- Reduce long-term utility costs
- Attract and retain tenants with lower bills
- Increase property value and green appeal
- Take advantage of federal and state tax incentives
Solar Incentives for Landlords in California & Texas
Federal Solar Tax Credit (ITC)
- 30% credit on system cost through 2032 for homeowners and property owners.
- Can be claimed for rental or investment properties if the owner pays for the system.
State-Level Incentives
| State | State Incentives | Utility Rebates | Notes |
| California | Self-Generation Incentive Program (SGIP) – for battery installations | PG&E, SCE, SDG&E offer rebates for solar + storage | Ideal for landlords in high-rate areas |
| Texas | Local utility incentives (CPS Energy, Austin Energy, Oncor) | Net metering credits (city- or co-op-based) | Great ROI due to lower system costs |
How Solar Works for Rental Properties
For Landlords:
You own the solar system and decide how to manage energy savings.
For Tenants:
They enjoy lower or stable electricity costs depending on how you structure billing.
Table: Landlord vs Tenant Solar Benefits
| Benefit | Landlord | Tenant |
| Lower electric bills | ✅ | ✅ |
| Increased property value | ✅ | ❌ |
| Tax credits & incentives | ✅ | ❌ |
| Energy independence | ✅ | ✅ |
| Lease attraction & retention | ✅ | ✅ |
| Control of system ownership | ✅ | ❌ |
ROI Example: Solar Payback for a 2-Unit Rental
| State | System Size | Install Cost (after tax credit) | Annual Savings | Payback Period |
| California | 7 kW | ~$13,000 | ~$1,800/year | 7–8 years |
| Texas | 7 kW | ~$11,000 | ~$1,400/year | 7–9 years |
After payback, landlords typically enjoy 15–20 more years of nearly free electricity while property value rises by 4–5%.
Eco Solar USA — Helping Landlords Go Solar Smart
At Eco Solar USA, we specialize in residential and rental solar systems across California and Texas.
With over 10 years of experience serving local communities, we’re proud partners of Tesla, Enphase, Maxeon, and Hyundai — offering trusted technology and expert installation.
📍 Office in Garden Grove, California
📞 Get your free consultation today to learn how much your rental can save with solar.
Whether you’re a California landlord facing high utility costs or a Texas investor looking for stable long-term returns, solar energy can make your rental more competitive and profitable.
Even tenants benefit through predictable energy costs and greener living — a win-win for modern housing.