As we slowly emerge into a (hopefully) post-pandemic world, many commercial property owners are looking for creative ways to save money and generate additional revenue. In addition, as concerns about climate change increase, more people are seeking to live and work in spaces that support sustainability.
Whether you are a commercial property owner who covers the cost of your tenants’ electricity or you primarily pay for the electricity used in common areas, adding solar and energy storage to your building could be the key to achieving financial growth and meeting sustainability goals. Governor Baker’s climate legislation puts Massachusetts on track to achieve ambitious changes to the Commonwealth’s climate policy and goals while making solar easier and more financially accessible for commercial real estate owners. Whether you’re looking for a loan or lease, or you’re interested in a rooftop, canopy, or EV charging installation, there’s no better time to add solar to your property.
Reduced Costs and Reliable Revenue Streams
Electricity rates have risen more than 98% in the last 20 years, and with grid improvements required to support the growth of distributed generation, energy costs are expected to continue to rise. This makes it challenging for commercial property owners to budget energy costs year over year.
Solar enables owners to take control of their energy costs and reduce dependency on local utility-supplied power. Those who choose to purchase their systems can take advantage of financial and tax incentives offered through the Solar Massachusetts Renewable Target (SMART) program. A property owner with the right tax situation can reduce the cost of installing a solar system by more than 40%.
Solar also provides opportunities for additional revenue that can free up resources for other renovations, marketing, hiring, and more. Massachusetts incentives generate revenue streams for system owners that allow for cash-on-cash returns exceeding 25%. Leasing is also a popular choice with options to receive payment upfront or monthly over the life of the system without any upfront cost. With most solar systems expected to operate for 20 to 30 years, they’re the most reliable and longest-term tenants you’ll ever have!
Solar installation for Rabina Properties in Auburn, MA
Improved Property and Value
Replacing the roof of a commercial property is expensive. Adding solar can significantly reduce or even eliminate your roof replacement costs through upfront or monthly lease payments.
Furthermore, solar is proven to increase building property values. The American Association of Appraisers reports that a building with a solar array has a higher market value than the same building without solar. Solar carports, canopies, and EV charging options provide additional comfort and convenience that can improve occupancy rates and resale opportunities.
653-kW system for Milliston Commons in Millis, MA
Environmental Leadership through a Reduced Carbon Footprint
Buildings are one of the biggest contributors to greenhouse gas emissions. In fact, according to the Environmental and Energy Study Institute, 40% of U.S. carbon dioxide emissions come from residential and commercial buildings. Commercial property owners will need to change the way they construct and renovate structures in order to meet new building codes and the state’s commitment to reach net-zero carbon emissions by 2050.
Solar energy is clean, renewable, and abundant. Unlike fossil fuels, solar power does not generate harmful carbon emissions and other greenhouse gases known to contribute to global warming. Adding solar in addition to making energy efficiency and waste reduction improvements to achieve high-performing buildings is a great way to reduce your property’s carbon footprint.
Whether the reasons are financial, driven by a reduced carbon footprint, or purely philosophical, the demand for renewable energy is real and growing. Tenants, prospective customers, and employees are increasingly weighing a property owner’s or company’s environmental policy and commitment to sustainability in their decision criteria. With solar, you can be an environmental leader while participating in the “clean energy economy” of the future.
Here are some examples of commercial real estate companies that have benefitted from installing solar with Solect.
- Rabina Properties: A real estate investment, development, and management firm based in New York, Rabina owns more than seven million square feet of apartment houses, office buildings, retail properties, and industrial sites. Adding solar to the roof of their Auburn property will reduce their annual electricity bill by 70%.
- Milliston Commons: This popular retail plaza in Millis, MA houses several dozen retail establishments including a laundromat, a grocery store, and other small businesses. Its solar system covers 100% of electricity demand in common areas and parking lots, as well as all power for its stores, saving more than $130,000 in the first year.
- Parsons Commercial Group: The commercial real estate company based in Framingham, MA was was looking for a way to add additional revenue streams to its properties while cutting costs for clients. It partnered with two of its tenants to install a solar array that covers 100% of the electricity used on site.
475-kW Parsons Commercial Group solar PV system in Northborough, MA
Whether you’re looking to reduce costs, free up resources, or generate additional reliable income, Solect can help find the right solution for your commercial property. We leverage our solar expertise and work with our customers to understand your property management needs through a clean energy installation.