Listing the benefits of commercial solar energy for businesses is straightforward, but quantifying their value can be challenging, especially when considering the impact on property value. While it’s widely believed that a building equipped with high-quality solar panels is more valuable than one relying on fossil fuel-generated energy, determining the exact increase in value can be complex. If increased property value is a key consideration for justifying the cost of commercial solar panels, this article aims to provide insight.
To begin, let’s examine the impact of residential solar installations on property value. A study by Zillow revealed that homes with solar panels sell for 4.1% more than comparable homes without them. While similar correlations may exist for commercial properties, fewer studies have been conducted to verify these findings. Nonetheless, the general consensus suggests that adding solar power has the potential to boost a property’s selling price.
The specific impact of solar on commercial property value hinges on several factors:
Ownership of the Property: The greatest value-add typically occurs when the organization installing solar power owns both the site and the solar equipment. Owning the equipment outright grants access to tax incentives, reduced energy expenses, and potential renewable energy credits, along with the ability to promote the green attributes of the solar system, all contributing to increased commercial property value.
Landlord Properties: If you own a building but do not occupy it, this presents a great opportunity to boost your revenue while simultaneously adopting eco-friendly practices. Owners of tenanted buildings have unique potential to increase their property’s value while enjoying new positive cash flow generated by a solar installation(s). Contact us for detailed information on how this can enhance your situation, with the potential for zero-down financing, tremendous potential tax advantages, and the intriguing possibility of off-book financing, when available.
Leased Properties: Many organizations lease their commercial facilities. While they may not own the property, they can still benefit from commercial solar by reducing energy costs, potentially enhancing public perception, and enjoying the positive association with sustainability.
Benefits for Tenants: Tenants can leverage commercial solar installations to negotiate lower electricity bills, potentially leading to higher satisfaction and longer lease terms.
Soft Benefits: Beyond direct financial gains, commercial solar installations contribute to environmental awareness and social responsibility, enhancing the public image of the property owner. Moreover, visually appealing solar panels can update a building’s appearance, often resulting in increased property values.
In summary, property value should be considered when evaluating the benefits of commercial solar. While quantifying this value may pose challenges, the potential long-term advantages justify careful consideration of solar energy investments for businesses.