Stating the pros of solar power for commercial use is effortless, but listing their value can be challenging. The impact on land asset value is a good example. While everyone wants a property equipped with solar panels rather than running on fossil fuel-generated energy, determining how valuable it is can be puzzling. If the increased land value is crucial to your institution in justifying the cost of commercial solar panels, this article may assist you.
Let us start with a quick look at non-commercial, residential solar installations. According to a report generated by Zillow, a home equipped with solar panels sells 4.1% more than a home without installed solar panels. Some reports also show this similar correlation for commercial property valuations, but not enough authentic study clarifies the difference between a commercial land value with solar panels. Still, the apparent result regarding adding solar power to commercial land can increase the selling price.
The following questions will clarify your thoughts regarding the potential to increase the selling price of commercial land.
Does The Authority Own The Property/Land, Where They Are Installing Solar Power?
As one might think, the significant potential value-add occurs when the authority owns the land and the solar panel equipped at the site. Purchasing commercial solar equipment ultimately gives owners access to possible tax incentives, decreased energy expenses, and potential for claiming renewable energy credits( along with the ability to promote the green attributes of their solar system). Increased asset value is also part of that pros list.
How Can A Leased Property Be Fruitful In Terms Of Commercial Solar?
Many authorities rent their commercial services, but that does not mean they cannot use them. Lessee pays a significant chunk of costs of the property (e.g., insurance, property tax, utilities). Installing commercials could help lessees pay cash in terms of energy costs. And let them take benefits from a positive public image by equipping solar on their building.
How Much It Will Affect The Value For Property Owners Who Make Available Solar Power For Tenants
The following are some perks that renters can take up when asking a property owner to install commercial solar:
- Tenants will have to pay lesser electricity bills than previous. Because having equipped solar panels saves them time and cost of finding new renters.
- Properly structured PPAs or solar lease deals can be transferred to new tenants. If the original lessee departs, making the value of the property more worthy.
- Institutes with solar panels equipped could encourage other institutions to take corporate social responsibility more seriously.
Are There Any Other Benefits Of Equipping Solar Panels?
Environmental Awareness, Social Responsibility, and Progressive Thinking are the three significant benefits of equipping solar panels. It will also make a better image in public and reduce the cost of electricity bills. In addition, Property Owners could save the amount by maintaining the outer look of the building. So, the more aesthetic the building looks, the more its value.
Is Solar Power Low Maintenance?
Modern solar panel systems are low maintenance and very reliable. The average lifespan of a new solar panel system installed is between 15 to 25 years, depending on the panel type. Once a system is installed, it will generate power and need no further maintenance to run the system. You do not even need to clear the panels after snow or rain because they are highly resistant to harsh weather.
Overall, when evaluating the pros and cons of commercial solar, an analysis should disintegrate property value into small factors to get an accurate result. To know more, and get started with your experience on solar panels, contact us.