Path-Q Solar

When should a landlord obtain separate solar proposals for owner-paid and tenant-paid electricity?

Answer

Obtain separate proposals whenever the person paying the electric bill, receiving bill benefits, or controlling operating decisions differs between owner-paid and tenant-paid arrangements. The proposals should model each arrangement’s costs, benefits, responsibilities, and consent requirements rather than applying one payback calculation to both.

Key points

  • Document which meters serve which spaces and who pays each bill.
  • Ask for separate treatment of common-area loads, tenant loads, vacancies, reimbursements, and shared benefits.
  • Include lease term, ownership, maintenance, access, and future transfer assumptions.

What it depends on

  • Metering and utility-payment structure
  • Lease terms and tenant responsibilities
  • System ownership, financing, and allocation of energy benefits

Risks and trade-offs

  • A project that benefits the owner may not reduce a tenant’s bill, and vice versa.
  • Changing payment arrangements can require lease amendments or create disputes.
  • Shared or rebilled energy may involve additional administrative and regulatory requirements.

Information you may need

  • Meter map and utility bills by account
  • Lease provisions and current payment responsibilities
  • Separate financial models for owner-paid and tenant-paid scenarios

Your next step

What to do next

Give installers the actual metering and payment arrangement and request two itemized proposals with explicit assumptions about who pays and who receives each benefit.

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