Mid Atlantic Real Estate Journal — Spring Preview — April 27 - May 10, 2012 — 25A


G reen /S olar

By Todd Hranicka, Vanguard Energy Partners Solar makes your property more desirable

lar energy’s environmen- tally friendly “green ben- e f i t s ” , f ew are familiar with the busi- ness side of green. The fact is that “G

oing green”… al- though most peo- ple relate to so-

Maryland commercial electric rate. After the solar system is paid off, the property owner continues to receive the SREC (Solar Renewable Energy Cer- tificate) cash flows, along with the rate paid by the tenant. You have now created a second cash flow. As for the more obvious ben- efits of “going green,” a solar investment reduces the United States’ reliance on fossil fuels, lessens a firm’s carbon foot- print and illustrates their com- mitment to the environment. These value-added benefits of solar energy play a significant role in attracting and retain-

ing tenants, especially tenants with an existing commitment to sustainability. Corporations such as Apple, Wal-Mart and Deutsche Bank have imple- mented renewable energy proj- ects to achieve their strategic goals. Recently, the Depart- ment of Defense committed to 25% renewable energy by 2025. Therefore, if all factors are equal, firms with renew- able visions are more likely to select a building with solar, as it aligns with their existing objectives. The USA Today recently re- ported, “The U.S. remains the innovative center of the solar

industry,” said Rhone Resch, the president of the Solar Energy IndustriesAssociation (SEIA). The article went on to explain that Mr. Resch ex- pects solar power, which now produces less than 1% of U.S. electricity, to generate 10% by 2020. At the end of last year, SEIA reported that the solar industry set a record number of installations and achieved 140% annual growth in the third quarter of 2011 -- solar’s best quarter ever. Regarding growth in 2011, Forbes also reported that solar delivered 1.86 new gigawatts in a mar- ket that previously was mea-

sured only in megawatts. The article predicted, “Looking at the long list of projects ready- ing for construction, 2012 looks likely to put even more impres- sive numbers on the board.” Ultimately, “going green” is a strategic business decision that extends far beyond the environmental benefits. Asolar PV system is a sound capital in- vestment that generates clean energy, an impressive return on investment, and enhanced property marketability. Todd Hranicka is vice president of sales & mar- keting at Vanguard Energy Partners. n

Todd Hranicka

solar offers a very attractive return on investment. A solar photovoltaic (PV) array, a 25- year asset, increases property value and distinguishes your property from the competition. Vanguard Energy Partners’ commercial real estate cus- tomers affirm that their solar properties earn higher lease rates and experience lower turnover than their non-solar properties. Solar incentives in the Mid-At- lantic States, coupled with the existing federal tax credit, ac- celerate a solar system’s rate of return. For instance, in Mary- land, a state with robust solar incentives, a standard 300kW rooftop solar array becomes cash positive in four years. In addition, solar provides a com- petitive advantage for lease renewals. A solar installation will provide your tenant with a stable, discounted (5% to 10% savings) electricity rate and the traditional “green benefits,” which they can pro- mote to their customers and shareholders. To explain the discount, the current average commercial electric rate in Maryland is $.11 per kWh. The 300kW solar array mentioned above produces electricity at ap- proximately 15% to 20% dis- count, per kWh, to the average 2012 commercial mortgage bankers conference . . . totally driven by the markets the properties are located in and sponsor experience. Most loans are interest only for a two-three year period. In summary, expect the 2012 lending environment to be better than last year. Most lenders are looking to expand their production but their staffs remain lean. SamBerns and Ernie Des- Rochers are managing di- rectors of NorthMarq Capi- tal in New York State. n continued from page 24A

Solar is the future of energy. Vanguard is the future of solar. TM

The future of your company depends on making smart decisions. That’s why so many companies choose Vanguard to be their solar energy partner. Vanguard’s top quality systems consistently outperform industry standards while providing decades of reliable and affordable solar energy. Our project history speaks for itself, too. We’ve designed and installed the highest solar array in the world, the first commercial net zero electric facility in the United States and one of the largest rooftop systems in North America. Contact Vanguard today. It’s the right decision for your company’s future.

855-7-VEP-FUTURE info@vanguardenergypartners.com

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