How Solar Can Turn Your Roof or Parking Lot into a Revenue-Generating Asset
Unused spaces on commercial properties, such as rooftops and undeveloped or unimproved lots, often remain idle while they could serve as solar field. Installing a solar power system on these areas can transform them into revenue-generating assets while contributing to sustainability goals. Here, we explore how solar can benefit your property and maximize its potential.
At Aurora Energy, we specialize in helping businesses navigate the shift to solar power, offering tailored solutions that meet the unique needs of commercial properties. Whether you’re looking to improve efficiency, reduce operating costs, or enhance your company’s sustainability profile, this guide has all the information you need to make an informed decision about investing in solar energy.
The Potential Income Streams from Solar
- Energy Savings: By generating electricity on-site, your business can significantly reduce energy bills. This is especially impactful during peak demand times when utility rates are highest in addition to eliminating the variable energy costs on financial statements.
- Selling Excess Power: Maryland offers net metering programs, allowing you to sell unused solar energy back to the grid, further boosting your revenue.
- Solar Leasing: If you don’t want to own the solar system, you can lease your roof or idle lot to a solar developer who will pay you rent while managing the system themselves.
- Attracting Tenants: Commercial tenants increasingly prefer properties with lower or no utility costs and a focus on sustainability, which solar power can deliver.
Reducing Operational Costs and Increasing NOI (Net Operating Income)
Solar power directly reduces your operating costs by lowering or eliminating utility bills. With predictable energy costs, businesses can better budget and manage their expenses. Over time, these savings can dramatically increase your property’s net operating income, enhancing its financial performance and valuation.
Case Studies of Commercial Properties Using Solar Successfully
- Industrial Parks: A fresh fruit and distribution center warehouse in Jessup, Maryland transformed its roof and unimproved lot into a solar farm, generating enough electricity to power the facility and earn additional revenue by selling the Solar Renewable Energy Certificate (SREC).
- Office Buildings: An office complex in Silver Spring, Maryland installed several solar systems, cutting operational costs and achieving Net Zero Goal, which attracted high-profile public recognitions.
The Impact of Rising Electricity Rates on Business Profitability
Electricity rates have risen steadily over the past decade, and this trend is expected to continue. Solar energy provides a hedge against these increases by locking in lower, predictable energy costs. Businesses that adopt solar can safeguard their profitability against fluctuating utility prices.
Available Incentives That Enhance Financial Returns
- Federal Investment Tax Credit (ITC): This allows businesses to deduct 30% of the solar installation cost from their federal taxes, significantly reducing upfront expenses.
- Accelerated Depreciation (MACRS): Solar systems qualify for accelerated depreciation under the Modified Accelerated Cost Recovery System, which allows businesses to recover costs faster.
- State and Local Incentives: Depending on your location in Maryland, additional grants, rebates, and tax credits may be available.
- Solar Renewable Energy Certificates (SRECs): These certificates can be sold to utilities or other companies to meet renewable energy requirements, providing an additional revenue stream.
How Solar Contributes to Sustainability Goals and Corporate Social Responsibility
- Reducing Carbon Footprint: Solar energy significantly reduces greenhouse gas emissions compared to traditional electricity sources.
- Improving Brand Image: Companies that adopt solar power are seen as environmentally conscious leaders, which can boost customer loyalty and stakeholder trust.
- Meeting ESG Targets: Solar installations can help businesses achieve Environmental, Social, and Governance (ESG) goals, attracting investors and partners who prioritize sustainability.
Investing in solar energy for your commercial property is more than just a smart financial decision, it’s a step toward a more sustainable future. By turning unused areas like rooftops and parking lots into revenue-generating assets, you can reduce operational costs, increase property value, and enhance your corporate image. The combination of energy savings, financial incentives, and environmental benefits makes solar a win-win for commercial property owners.
Ready to explore how solar can transform your property? Contact us today to learn more and start your journey toward a brighter, more sustainable future. At Aurora Energy, we are committed to helping businesses navigate the transition to solar power with customized solutions that meet their unique needs. Whether you’re looking to lower energy bills, increase sustainability, or boost property value, our team of experts is here to guide you every step of the way.
