Warehouses are often overlooked when it comes to renewable energy, but they represent a huge untapped revenue stream for building owners who install solar panels on their rooftops.
A study by Environment America Research and Policy Center found that on average across the country, warehouses could produce 176% of their annual electricity use by fully building out their rooftop solar potential.
One of the key benefits of solar on warehouses is the ability for building owners to increase their NOI. There are multiple mechanisms to achieve this, and they can all be executed in both a triple net or gross lease. Owners are also able to capitalize on 30-60% Investment Tax Credit and Federal bonus depreciation. The tax incentives combined with the decreasing cost of solar panels, and increasing cost of electricity from the utility companies, leads to market outperforming high returns.
The EARPC study shows that warehouses are ideal for solar installations due to their large, flat rooftops and minimal shading. Counter to prevailing opinion, rooftop solar installations can be delivered without compromising the roof itself. Ballasted solar racking systems require zero roof penetrations and fall well within the structural limitations of the majority of buildings. This means that solar panels can be easily installed and receive maximum sunlight exposure throughout the day, which can lead to higher energy yields and more revenue.
Another benefit of installing solar on warehouses is the ability to hedge against volatile electricity prices. By generating their own energy on-site, building owners and/or their tenants can reduce their dependence on the grid and avoid the risks of fluctuating electricity prices. This can help to improve the financial stability of the building and provide a more predictable source of income.
In addition to the financial benefits, solar on warehouses can also help to reduce greenhouse gas emissions and improve air quality. By generating renewable energy on-site, building owners and tenants can reduce their carbon footprint and contribute to a more sustainable future.
If you’re interested in a clean and faster solution to power your building reach out to Annie Otfinoski at MYNT Systems.
References: Johanna Neumann, Senior Director, Campaign for 100% Renewable Energy, Environment America Research & Policy Center
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