Commercial
Commercial customers who own or lease space can benefit from solar systems in many ways. The following market drivers have tangible results for property owners or tenants.
- A desire to be "green"
- Looking for predictable energy costs
- Looking to lower costs and increase energy independence
- Looking to improve property values, increase occupancy and reduce tenant turnover
The "green" cache is attractive to property owners since there is a growing population of consumers that want to be part of the renewable energy revolution. Whether their reasons are financial, driven by a reduced carbon footprint, or purely philosophical, the demand is real and growing. This attribute is a becoming a consideration for a tenant when entering into a lease with a building owner and/or an employee when deciding which employer to join.
The utilities have experienced an average of 3% growth in consumer pricing on an annual basis for the past seven (7) years. The fluctuation in these rates is a concern for property owners. Upon the installation of solar production, the consumer can accurately forecast the cost of energy associated with the installation for more than twenty (20) years.
The American Recovery and Reinvestment Act (ARRA) of 2009 provides subsidies and tax advantages for the appropriate buyer. A buyer in the right tax situation can reduce his/her installation cost by more than 50% in the first year. Additionally, the energy is generated at a significant discount to normal grid rates and independent of the grid itself which reduces the reliance on foreign oil.
Statistics have shown that buildings using renewable energy have higher occupancy rates, reduce tenant turnover, can earn higher per square foot rental rates, and attract a wider market of tenants. These components translate into increased economic value to the property owner.
