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Financing Rooftop Solar for Single-Family Rental Properties

  • Russell Heller
Chapter
Part of the Palgrave Studies in Sustainable Business In Association with Future Earth book series (PSSBAFE)

Abstract

This chapter provides a solution to the split incentive between tenants and landlords currently preventing rooftop solar adoption in the Single-Family Rental (SFR) home market. The Renter’s Power Purchase Agreement (RPPA), which incorporates PPAs into rental agreements and enables property owners to sell electricity to their tenants. After providing a background on the growth of the solar industry and the institutionalization of the SFR market, the strengths of the RPPA compared to the traditional third-party leasing model—it removes the need for expensive tax equity, reduces borrowing costs, and eliminates most sales costs—are presented. The chapter closes with a discussion of the conditions under which the RPPA might be most lucrative at present: neighborhoods in sunny states with strong Net Energy Metering (NEM) policies, above average electricity prices, and concentrated institutional SFR ownership.

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Yale UniversityNew HavenUSA

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