Burlingame C&I
delivers energy revenue

A Burlingame Industrial building commits to 100% onsite renewable energy at a net cost of $29/SF, to generate a 1st year asset value of $51/SF and a year 10 asset value of $68/SF.

    This 52,000 square foot industrial building in the heart of Burlingame is close to both the SFO International Airport and both the 101 and 280 highways, making it ideal site for cold storage and distribution. In preparation for their current tenant lease expiration and turnover, the landlords decided to investigate onsite renewable energy as a recruiting amenity and additional source of revenue. They contracted Mynt to redevelop the property's energy assets for optimal market competitiveness and financial returns.

    Benefits to the Owner

    The renewable system due to start construction in November of 2022 will incorporate 500 kW of rooftop solar PV and 220 kWh of battery storage. Boosted by incentives in the recent Inflation Reduction Act, the $1.5M system has a first year net cost of $694K (a 60% reduction). As designed, the system will offset 100% of the energy use onsite while delivering $171K in energy revenue in the first year. Mynt will provide long-term asset management services, automatically monitoring and billing the tenants on the owner's behalf. In addition to the added cash flow, the incremental income of the new energy property will create $51 /SF in asset value year 1, and $68 /SF of additional asset value in year 10.

    A secondary owner benefit is that the building has been ‘future-proofed’ with energy infrastructure to accept more battery storage or future tenant energy load increases, including EV charging.

    Benefits to the Tenant

    The switch to onsite renewable energy will yield many benefits to future tenants, including long term reduction and stabilization of their and costly energy expenses. These tenants will receive a 5% discount on the electricity and will be locked in at a 5% annual rate increase regardless of future PG&E rate increases.

    Last, the system generates almost 723,000 kilowatt hours of energy per year, representing 379,000 pounds of CO2 emissions annually. Using carbon-free energy, the tenants will be able to greatly reduce the carbon footprints of their products and services, achieving their corporate ESG goals and exceeding customer expectations.

      380,000 pounds

      Avoided CO2 Emissions /yr

      $230,000 /yr

      Added Energy Income (average)

      $3.55M

      Asset Value Increase

      4.7 years

      Simple Payback

      The
      Benefits

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      Peak shaving
      Onsite energy storage will minimize peak demand charges
      100% renewable energy
      Rooftop solar will provide 100% of the annual energy needs