It is simple to list the many benefits of solar energy for businesses, but it cannot be easy to quantify their value. One example is the impact on property values. A building with high-quality panels for commercial properties is likely more valuable than one that uses fossil fuel-generated electricity. However, it can take time to determine precisely how much. This article might help you to justify the price of commercial-solar panels if the property value is essential to your company.
Let’s start by looking at residential and non-commercial solar installations. Zillow’s study showed that solar panels make homes sell for 4.1% less than similar homes without them. Although some reports show a similar correlation in business property valuations, there need to be more studies to confirm comparable results for commercial properties. The general conclusion is that solar power can increase the selling price of a property.
The answers to the following questions will determine the specific impact of solar energy on commercial property values.
Does the company install solar power on the property/building? Owners can access any tax incentives, lower energy costs, and the potential to claim renewable electricity credits (as well as the ability to promote the green aspects of their solar system). This benefit also includes an increase in the value of the commercial property.
How can a leased property bring the benefits of the solar commercial? While many organizations rent commercial spaces, it doesn’t mean they don’t have to benefit. The lessee pays for most of the property’s costs (e.g., insurance, property tax, and utilities) or receives higher rent. Commercial solar can reduce the energy costs the lessee would pay and allow them to enjoy positive public perceptions by having solar power on their property.
What’s the added value to property owners providing tenants with solar energy? These are some benefits renters can highlight when trying to convince landlords to install commercial solar.
- Tenants who pay lower electricity bills might be happier and more likely to stay longer. This could reduce the cost and time it takes to find new renters.
- Properly-structured lease agreements or PPAs can be transferred to new tenants if the original lessee moves, making the property more appealing to potential commercial renters.
- Solar installations could be a great option for properties.
Are there any “softer” benefits to going solar that indirectly affect property values? A less obvious but still important consideration is that visible solar panels are a sign of “environmental awareness,” “social responsibility,” or “progressive thinking.” A commercial solar system not only improves public image but also offers the cost savings and benefits of going green while updating buildings’ physical appearance. Property values will increase if properties are more appealing.