Commercial property owners are always looking for ways to increase the value of their investments. One way that is gaining in popularity is through the installation of solar power systems. While there are initial costs associated with installing a solar power system, over time these systems can provide a significant return on investment. In this article, we will explore some of how a solar power system can increase the value of your commercial property.
Although it’s easy to list the many benefits of commercial solar energy for businesses, pinpointing their value can be more complicated. The impact on property value is one such example. Although high-quality solar panels for commercial buildings make the properties more valuable than those powered by fossil fuels, it can be tough to calculate exactly how much extra value they add. If your organization is looking to commercial solar panels to increase property value, this article may be of help.
First, let’s look at solar installations for regular homes, not businesses. One study found that homes with solar panels sell for 4.1% more than similar homes without them. Some reports say that businesses with solar power increase in value too, but we need more studies to be sure. The main idea is that adding solar power could make a property worth more money. Let’s try and answer a few common questions to get closer to our main objective.
Is the organization that is installing solar power the owner of the building or property for said project?
The adopting organization reaps the most benefits when it owns both the site and equipment being installed. With ownership comes access to any possible tax incentives, as well as reduced energy expenses and potential for claiming renewable energy credits (promoting the solar system’s green attributes in turn). Lastly, commercial property value usually increases.
What are the benefits of commercial solar for a leased property?
Even though renting their commercial facilities, many organizations can still benefit. Most of the property-related costs (e.g., insurance, property tax, utilities) are paid for by the lessee (or passed on to them in the form of higher rent). By installing commercial solar panels, they could reduce the energy expenses shouldered by the lessee—and enjoy public perception boosts that come with having solar power visible at their site.
Why should property owners pay to install solar panels for their tenants?
Here are few advantages that renters can bring up when trying to convince a landlord to install commercial solar:
- Reduced energy bills – Solar panels can provide significant savings on electric bills, especially in states with high electricity rates.
- Solar credits and incentives – Many utilities offer financial incentives for installing solar panel systems, which …….