Revolutionize Your Business with a Commercial Rooftop Retrofit and Solar PPA
February 8, 2024
Increasing Operational Sustainability Through A Solar PPA
April 24, 2024Empowering California Real Estate with Solar PPAs for Commercial Properties
Empowering California Commercial Real Estate with Solar PPAs
In California where electricity rates are surging, businesses are increasingly turning to solar Power Purchase Agreements (PPAs) as a solution. Commercial real estate portfolios, including Real Estate Investment Trusts (REITs), can significantly benefit from adopting solar PPAs, particularly when integrated with rooftop retrofits.
The escalation of electricity rates in California is a pressing issue for all businesses. California’s investor-owned utilities SCE, SDGE and PGE cite many factors that contribute to these rising costs such as; infrastructure upgrades, stringent environmental regulations, and market dynamics. This surge in energy expenses is prompting businesses, especially those with significant real estate holdings, to seek more stable and cost-effective energy solutions.
The Appeal of Solar PPAs for Commercial Businesses
Solar PPAs are becoming a go-to choice for many California businesses. In a PPA, a solar provider installs solar panels on a property at no upfront cost, with the business agreeing to buy the generated electricity at a predetermined rate. This arrangement offers predictability in energy costs and an opportunity to lock in lower rates, shielding businesses from fluctuating energy prices throughout the life of the system.
Owners and operators of commercial buildings can streamline their transition to solar by combining a rooftop retrofit with a solar PPA into a single financial package. This strategy allows businesses to enhance their buildings’ energy efficiency and generate renewable energy simultaneously. The retrofit ensures that the building is structurally sound and optimized for solar installation, thereby maximizing energy production and efficiency.
Tailored Solutions for Real Estate Portfolios
For commercial real estate portfolios, including REITs, customizing solar solutions is key. Each property within a portfolio might have different energy needs, structural characteristics, and solar potential. As a specialized PPA provider and solar EPC, Revel Energy can assess these factors and devise tailored solar projects that align with the specific needs of each property, maximizing the financial and environmental benefits.
Adopting solar PPAs presents several financial advantages for commercial real estate and REITs. These include reduced operational costs, increased property values, and potential tax benefits. The cost savings from lower electricity bills can be substantial, improving the overall profitability of the real estate assets. Moreover, the enhanced sustainability profile of the properties can make them more attractive to tenants and investors who prioritize environmental responsibility.
Benefits for Real Estate Investment Trusts (REITs)
REITs, which often manage large portfolios of commercial properties, stand to gain significantly from solar PPAs. These agreements can lead to uniform energy solutions across multiple properties, streamlined management of energy costs, and an enhanced green profile for the entire portfolio. Additionally, the long-term nature of PPAs aligns well with the investment horizon of REITs, offering a stable and predictable return on investment.
By adopting solar solutions, commercial real estate businesses and REITs not only reduce their energy costs but also significantly lower their carbon footprint. This positions them as forward-thinking leaders in corporate social responsibility and environmental stewardship as it also aligns with California’s renewable energy goals.
Green Investments & Greater Returns - Solar PPAs Transform California Commercial Real Estate
Solar PPAs present a powerful opportunity for California’s commercial real estate sector and REITs to address rising electricity costs, enhance property values, and commit to sustainable practices. Many commercial real estate buildings, especially in California, are already taking the steps to unlocking their hidden property potential.
As the state continues to champion renewable energy initiatives, adopting solar solutions is not just beneficial; it’s imperative for staying competitive and responsible in today’s market. With tailored solutions and strategic planning, commercial real estate can indeed harness the power of the sun for a brighter, more sustainable future. Contact our expert team today to learn more.
Commercial grade rooftop solar is ideal for: manufacturing, warehousing, logistics, industrial, retail, hospitality buildings and more with over 10,000 sq. ft. rooftops.
CARPORT SOLAR
Free standing carport solar generates added solar power for properties with limited rooftop space. Added benefits include shading and protection for employees vehicles.
Crucial for reducing peak demand charges. Automated to supply electricity when your panels won’t. Energy storage is ideal for businesses that incur significant peak charges.
As the popularity of electric vehicles increase, so does the demand for on-site charging. This sustainable amenity has become a parking lot fixture for competitive employers.
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Client Testimonial: Kelemen Company
Corporate Business Park in Irvine, CA has created significant electricity cost savings through commercial solar installed across the 5-building business park.
Client Testimonial: Tice Gardner & Fujimoto LLP
See how this CPA firm saved on electricity and gained valuable tax credits through commercial solar that they used to keep cash in the businesses.
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