Wind and solar-energy are set to generate 50% of the world’s power needs by 2050, according to Bloomberg. Big names in the commercial rental space, including companies like General Growth Properties, have been making news for their efforts in renewable energy options. Nowadays, solar power in commercial real estate is becoming more popular, with even small scale developers following suit. As a landlord, choosing solar power over other alternatives will make your business more appealing and increase its value as well.
Solar power lowers the operation cost and increases revenue
If you acquire your block through a financing option, you probably want to clear your loan quickly. Solar power provides an option to cut down on operating expenses and boost revenue by reducing expenditure on utilities, saving you more money, which you can use to clear such debts or even acquire more property. In 2018, president Trump’s solar residence in Manhattan confirmed that it would save $120,000 annually on energy, thanks to the utilization of solar energy. Furthermore, solar panels appeal to potential tenants because they know that the electricity bills will be lower.
Prospective tenants can also see that the investor has the future in mind. Since they dislike fluctuations in the energy market and disruptive power outages, they will often want to stay in solar powered rentals for more extended lease periods. This is primarily why such investment buildings fetch higher rent rates and have lower vacancy levels, according to the Department of Energy.
Solar panels utilize unused space and increase the property value
Installation of solar panels causes minimal disturbance to your property. In most cases, solar panels are set up on under-utilized space. Besides positioning them where they receive sunlight for most hours of the day, setting them on the roof also boosts the roof life. A substantial increase in the value of homes that utilized solar energy was found in a study by Lawrence Berkeley National Laboratory.
Solar energy for commercial buildings can hike the value of your residential building considerably, depending on its geographical location. If, for example, it is in an area that enjoys the sunlight for the most part of the year and is away from shadows or hills, the overall value of the property may grow. Additionally, if the local policy allows net-metering or you are eligible for financial incentives such as Solar ITC, commercial solar may be the best option.
Solar panels improve the green appeal of the property
Production of solar energy does not generate any noise pollution, which is a significant concern among residents of rental properties. Also, it does not create any waste during production. Panels have a longer lifetime than other alternatives, and are designed to endure extreme weather conditions. Also, they are easily recognizable by potential tenants, and are a way to show your commitment to progressive thinking and an eco-friendly environment. In general, eco-friendly and better-looking properties end up fetching better rent prices.
Investing in solar energy for commercial buildings is a beneficial and forward-thinking decision. Often, a building fitted with high-quality panels is more valuable than one that relies on fossil-generated energy. Amongst other benefits, solar energy cuts down operation costs and boosts the comfort of tenants, as well as attracting new ones. Ultimately, it creates an opportunity for you to earn and save more as a landlord.