14B — May 27 - June 9, 2016 — Green Buildings — M id A tlantic
Real Estate Journal
www.marejournal.com
G reen B uildings
LEN ALLEN, VA — San Francisco’s deci- sion to require solar Capitalize on the growing opportunity to lease your rooftops to utilities San Francisco’s Rooftop Solar Ordinance could be a bellwether G
a 46-year veteran of the ener- gy business. “However, given the concern about climate change and energy efficiency in some communities, San Francisco’s proactive ap- proach might well be a sign of things to come.” Passed on April 19 by the San Francisco Board of Su- pervisors, the measure takes effect in January. It requires photovoltaic or solar hot- water panels on all non- residential buildings with 10 floors or less and more than 2,000 s/f of gross floor area. The ordinance cites San Francisco’s vulnerability to climate change and desire to
achieve energy independence as reasons for the measure. It also notes that installing solar panels at the time of construction is cheaper and easier for developers that adding them later. “Califor- nia already requires ‘solar- ready’ roofs,” Palk notes, “so this is a natural next step.” For decades, Americans thought of solar panels as an expensive novelty. However, the solar industry continues to make impressive gains in reducing the cost of the technology and boosting its efficiency. Little wonder utili- ties are growing more inter- ested in leasing commercial
real estate rooftops for solar power arrays, Palk said. “The likes of Duke Energy, South- ern California Edison and Dominion Virginia Power, to name a few, are quite inter- ested in this approach,” Palk said. “Bear in mind, the ma- jority of states now require utilities to make use of green energy, and so utilities have a lot of incentive to leverage rooftops where possible.” Landlords are not in the business of installing and maintaining solar panels, Palk notes, but utilities are much more comfortable do- ing so. “In San Francisco, utilities could engage in
power-purchase agreements with the developers of new buildings,” Palk said. “The utility would own, maintain and install the panels, en- abling the landlord to comply with the ordinance, even as the utility took care of the en- gineering studies, permitting process and other expensive and time-consuming details.” In addition to making rent- al payments to the landlords for otherwise-unproductive rooftops, utilities insure all equipment in such arrange- ments. “By owning the pan- els, the utility can include the power produced by them in its rate base and receive a re- turn on its investment, even as it meets renewable-energy requirements imposed by the state and pleases consumers who are concerned about climate change and energy efficiency,” Palk comments. And while some would argue that solar power un- dercuts the traditional power business, today’s utilities are better off getting ahead of the trend by leasing rooftops rather than trying to fight solar, Palk advises. “Should rooftop solar continue to grow without the involve- ment of utilities, this is of no benefit to them at all,” the attorney said. “Far better to have a seat at the table.” n MD Gov. Hogan appoints Beyrodt to Strategic Energy Investment Advisory Board BALTIMORE, MD — Maryland Governor Larry Hogan has appointed Dani- elle Beyrodt, vice president of Hill Management Ser- vices, Inc. , to the Strategic Energy Investment Advi- sory Board for a three-year term. Hill Management is a full-service real estate devel- opment company headquar- tered in Timonium. Created in 2008, The Stra- tegic Energy Investment Advisory Board reviews the activities of the Maryland Strategic Energy Invest- ment Program administered by the Maryland Energy Administration, and may make recommendations con- cerning proposed uses and expenditures of the Maryland Strategic Energy Investment Fund. n
panels on all new build- ings start - ing in 2017 is more evi- dence of the growing role of rooftop so- lar in com- mercial real
Roy Palk
estate, said Roy Palk , senior energy advisor for national law firm LeClairRyan . “No other major U.S. city has actually required that new buildings be constructed with solar arrays,” said Palk,
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