M id A tlantic Real Estate Journal — Owners, Developers & Managers — June 17 - July 21, 2022 — 5C
www.marej.com
O wners , D evelopers & M anagers By Liz Conroy, Infiniti Energy Going Solar Makes Sense for Commercial Property Owners
C ommercial property owners may go solar to lock in energy prices,
unused space without a capital investment. For a community solar lease to make sense a mini- mum amount of roof space must be available. The space varies by location. Lease agreements survive changes in property ownership. Asset Ownership The property owner owns the solar array and finances the full system cost up front. The property owner is responsible for the operation and mainte- nance of the array, consumes the generated electricity, and continued on page 7C
offsetting rising utility rates. Own- ers may want to increase their prop- erty value or reduce their carbon im- pact. Perhaps
Liz Conroy
property owners want to at- tract premium tenants asking for sustainable building space. Regardless of the reason, sev- eral financing structures exist for commercial property own- ers to go solar*. Understanding these solar options can help you make better decisions for your organization. A power purchase agree- ment (PPA) is the most com- mon financing structure for commercial property owners going solar. In this structure, the solar developer installs, owns, finances, and operates the solar array on a rooftop or land provided by the property owner. In return, the property owner buys the solar energy generated at a fixed rate, often much lower than the rate pro- vided by the utility. PPAs have a term commitment anywhere from 10 to 20 years. With no capital require- ments, energy price stability, hedging against rising utility pricing, and all operations and maintenance provided, a PPA makes sense for most commercial property owners. Much like other financial agreements, credit worthiness is a consideration when ne- gotiating a PPA. Commercial property owners should also consider their long-term real estate needs when looking at a term commitment of 10 to 20 years. Community Solar Power Purchase Agreement (PPA) Commercial property and rooftop space may be leased much like building space is leased to tenants. A solar de- veloper will pay for the rights to construct solar on your prop- erty and sell the energy gen- erated to subscribers. Lease terms are typically 25 years. Like a PPA, the solar developer installs, owns, finances, and operates the solar array. In states where community solar is an option, property own- ers can generate steady, long- term income from previously
Your guide for commercial solar solutions that make sense
Through strong partnerships with select clients, Infiniti Energy provides turnkey solar solutions
for commercial, industrial, and municipal properties.
Development • Financing • Planning • Engineering • Procurement and Construction
www.infinitienergy.com 732-370-1446
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