The IRA extended the ITC through 2034, meaning that investors and owners of commercial solar projects can claim a 30% tax savings, which translates to lower costs for building owners.
Benefits of adopting solar:
Unlock additional NOI
By lowering energy costs through a solar PPA / solar equipment lease, commercial real estate owners can reallocate extra budget space for other facility improvements and even tap into additional net operating income (NOI). This additional NOI comes from a site lease that gives Sunrock access to the roof in return for rental payments to the landlord. Further, commercial real estate owners can enjoy price certainty from a PPA / solar equipment lease over the long term instead of estimating utility costs that fluctuate over time.
Increase property value
On-site solar can significantly increase the value of your commercial real estate. That said, it is important to note that exactly how much on-site solar can increase the value of your property depends on a number of factors such as where your property is located.
Meet sustainability goals
No matter where in the U.S. your commercial real estate is located, it is likely that it will soon be required – perhaps by federal, state, or local mandates – to take meaningful steps to reduce greenhouse gas emissions. Whether your sustainability goals originate from internal initiatives or external regulations, on-site renewable energy will help you meet your targets.
Attract and retain top-notch tenants
Whether you are catering to commercial or residential tenants, on-site solar can be a compelling draw. Businesses and individuals tend to enjoy occupying spaces that align with their values. Further, savvy prospective tenants recognize that they may realize the cost-saving benefits of your on-site solar.