How Solar Power Can Increase Your Commercial Property Value

It is easy to list the many benefits of commercial solar energy for business. However, quantifying their value can be more challenging.

How Solar Power Can Increase the Value of Your Commercial Property

It is easy to list the many benefits of commercial solar energy for business. However, quantifying their value can be more challenging. An example of this is the impact on property value. While it is likely true that a building equipped with high-quality solar panels for commercial property is more valuable than a facility that relies on fossil fuel-generated energy, determining exactly how much more valuable can be complicated. If increased property value is an important factor to your organization in justifying the cost of commercial solar panels, this article may help.

Adding solar panels to your home or business can increase its value. Studies have shown that homes with solar panels sell for more money than those without. However, more studies need to be conducted to find out if this is true for commercial properties. Even so, it is clear that adding solar power can increase a property's value.

The specific impact of solar on commercial property value largely depends on the answer to each of the following questions:

Does the organization installing solar power own the building/property for the project?

One of the best ways to add value to a commercial property is by installing a solar power system. If the organization owns both the site and the solar equipment, they can take advantage of any tax incentives, reduced energy costs, and potential for claiming renewable energy credits. They can also promote the green attributes of their solar system. Increased commercial property value is another benefit of this approach.

How does a leased property deliver the benefits of commercial solar?

Many organizations rent their commercial facilities. This doesn't mean they can't also benefit. Most of the costs of the property (like insurance and taxes) are paid for by the renter. If you want, you can install a solar system on the property. This will make it so the renter doesn't have to pay as much for energy, and it will make them look good to people because they'll have solar on their site.

What is the added value for property owners who provide solar energy for tenants?

When trying to convince a landlord to install commercial solar panels, renters can mention these benefits:

  • Tenants who have lower electricity bills are more likely to be satisfied and stay longer in the property, meaning less time and expense is needed to find new renters.
  • If the original lessee leaves, a properly-structured PPA or solar lease deal can potentially be transferred to new tenants, making the property more attractive to potential commercial renters.
  • Solar-powered properties could also benefit from the increasing number of businesses that care about being socially responsible.

Are there any “softer” benefits of going solar that ultimately have an indirect impact on property value?

Commercial solar panels are a good way to show people that you are environmentally responsible and care about the future. Solar panels also save money and can make your property look nicer. When you are thinking about if solar panels are a good idea for your business, you should also think about how it will affect the value of your property.

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