Rooftop Solar Power Generation

Considering PV

When considering PV as a supplemental source of energy, commercial real estate owners should:

• Assess the solar energy source in their areas;
• Evaluate the Renewable Energy Policy Incentives available to them;
• Understand net metering options;
• Look at specific laws in their state; and
• Build a business model using dollars in a cost/benefit analysis along with the opportunity to recapture dollars from tenants in the shopping center.

Shopping center owners should also consider the intangible benefits of solar power that demonstrate a commitment to renewable energy programs and decreasing reliance on petroleum and coal. Tenants often value properties that have a commitment to using renewable energy. According to the U.S. Environmental Protection Agency (EPA), the benefits of “green power” include avoiding carbon dioxide emissions, reducing air pollution, hedging against future increases in electricity prices, serving as a brand differentiator, generating customer, investor and employee pride, creating positive publicity, and enhancing an organization's public image. In addition, taking “green” initiatives demonstrates civic leadership. A PV investment decision for new developments should be made early on so that “green power” may be used as a selling tool to attract tenants and lease documents may be drafted to incorporate recoveries to be paid by tenants.