Unlocking Additional NOI
Lowering energy costs through a solar Power Purchase Agreement (PPA) or solar equipment lease enables commercial real estate owners to reallocate budget space for other facility improvements and tap into additional net operating income (NOI). This additional NOI can be realized through a site lease that gives SDG access to the roof in return for rental payments to the landlord. Furthermore, commercial real estate owners benefit from price certainty over the long term, avoiding the fluctuations of utility costs.
Increasing Property Value
On-site solar can significantly enhance the value of commercial real estate properties. The extent to which solar increases property value depends on various factors, including the property's location and the scale of the solar installation. By adopting solar energy, property owners can not only improve their asset's value but also make it more attractive to prospective buyers and tenants.
Controlling Your OpEx
Real estate owners can achieve cost certainty and boost bottom line revenues by adopting solar energy. Locking in electric rates through solar is an effective way to hedge against the rising costs of utility-supplied electricity, providing financial stability and operational efficiency. By reducing dependence on fluctuating utility rates, solar energy ensures predictable and manageable operating expenses. Additionally, the long-term savings and potential tax benefits associated with solar installations make it a strategic investment for enhancing the overall profitability of your properties.
Attracting and Retaining Top-Notch Tenants
On-site solar can be a compelling draw for both commercial and residential tenants. Businesses and individuals are increasingly seeking spaces that align with their values, particularly in terms of sustainability and cost efficiency. Prospective tenants recognize the cost-saving benefits of on-site solar, making properties with solar installations more attractive. By adopting solar energy, property owners can attract and retain high-quality tenants who appreciate the environmental and financial advantages.
Meeting Sustainability Goals
Commercial real estate owners are increasingly required to adopt measures to reduce greenhouse gas emissions, driven by federal, state, or local mandates. Implementing on-site renewable energy solutions helps meet these sustainability targets. Whether motivated by internal initiatives or external regulations, solar energy enables property owners to demonstrate their commitment to environmental stewardship and sustainability.
