November 2024

30 — November 2024 — Owners, Developers & Managers — M id A tlantic Real Estate Journal

www.marej.com

O wners , D evelopers & M anagers By Shaun Keegan, Solar Landscape

Unlocking revenue opportunities with rooftop solar: A guide for commercial real estate owners

in the com- mercial real estate sector, the need for shovel-ready energy solu- tions is more p r e s s i n g than ever. Expe r t s W

ith data centers and manufacturing facilities on the rise

Rooftop solar not only gen- erates onsite energy but also offers significant revenue op - portunities for commercial property owners. Rooftop Solar is Good Business Leasing rooftop space to a reputable solar developer pres- ents a unique opportunity for property owners. Large com- mercial buildings—especially those with over 30,000 s/f of available roof space—are prime candidates for solar. Commercial real estate own- ers can consider solar leases as a strategic response to market

volatility. In a market char- acterized by softening rental prices and high vacancy rates, many owners are turning their rooftops into a source of steady income. By leasing rooftop space, owners can generate consistent revenue regardless of tenant occupancy or onsite energy needs. Unlike traditional mod- els that required buildings to consume all generated energy, advancements like community solar allow the energy gener- ated to be fed back into the grid. The result? Property own- ers can earn lease payments without needing to utilize the energy produced. Zero Upfront Investment One misconception about rooftop solar is that it requires substantial upfront invest- ment. In reality, the opposite is true. Property owners can host solar arrays with zero invest- ment – and zero hassle. In a third-party ownership model, solar developers finance, build, and maintain the instal- lations. The developer pays the property owner lease pay- ments, enhancing the proper- ty’s net operating income (NOI) without any capital outlay. The developer also handles maintenance of these systems, removing the burden from property owners. Solar Land- scape provides 24/7 monitor- ing and regular inspections to ensure optimal performance, allowing property owners to focus on their core businesses. Ideal Locations Commercial rooftops are some of the best locations for so- lar energy generation. They are typically not used for other pur- poses and are often located near urban centers where energy is most needed. This proximity streamlines energy distribu- tion, mitigates strain on the electrical grid, and reduces the potential for construction de- lays associated with large-scale solar farms. The commercial rooftop so- lar market is at an inflection point for building owners. Current solar programs offer lucrative incentives for early adopters, and those who de- lay might miss substantial financial opportunities. Now is the Time for Rooftop Solar Many states are also imple- menting building perfor- mance standards (BPS), man- dating energy upgrades and continued on page 34

Shaun Keegan

project that electricity needs from these facilities could dou- ble by 2035, underscoring the urgency for new approaches to energy sourcing.

Commercial rooftop solar generates revenue for building owners at no expense to the owner.

TRUSTED BY THE BIGGEST NAMES IN REAL ESTATE

Prologis Perth Amboy, NJ

Heitman Monroe, NJ

Turn your Roof into Revenue with a Community Solar Roof Lease

Public Storage Woodlawn, MD

solarlandscape.com | 844.765.2769 | partners@solarlandscape.com

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