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September 7, 2021

What to Expect When Considering Solar as a Rooftop Tenant

By Partner ESI

WHAT TO EXPECT WHEN CONSIDERING SOLAR AS A ROOFTOP TENANT

Having rooftop solar tenants is more attractive than ever, as they offer a sustainable way to squeeze out more revenue from your building(s). Not only have the hard costs associated with developing solar projects been drastically reduced over the last decade, but the regulatory climate is prime with favorable incentives both nationally and regionally that make renewables a financially attractive market for property owners and developers alike. In fact, the federal government has extended the current ITC credit (aka the federal solar tax credit) until 2023, and more and more states are upping their goals of carbon neutrality.

Last year, my colleague at Partner Engineering and Science, Inc. wrote an article that did a nice job of explaining the overall advantages of a solar lease / solar savings arrangement and dispelled some of the myths around solar technology. If you do have a large flat rooftop in a state/city with a good solar incentive, you may have already been approached by a developer or solar provider to lease your rooftop and/or enter into a Power Purchase Agreement (PPA). As a developer, I wanted to take this opportunity to detail the step-by-step process that building and property owners can expect when considering a rooftop solar power system, as well as discuss questions they should ask.

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