With the growing popularity of sustainable building practices and renewable energy, it begs the question: how can commercial real estate developers incorporate solar energy into their business plans? And equally as important, why should investors and developers look to solar energy for their projects?
The answer comes down to cost savings and brand image.
Solar power is not just good for the environment, it’s also a smart investment. The cost of renewable energy has fallen dramatically over the past decade and is expected to continue doing so as technologies improve and scale up. Solar panels have become cheaper than ever before, making them an increasingly affordable option for businesses across all industries.
Solar power also allows investors and developers to reduce carbon emissions and environmental impact. By reducing reliance on fossil fuels like oil or coal (which are responsible for large amounts of air pollution), commercial real estate developers can help improve air quality around their properties while saving money at the same time.
In addition to the obvious environmental impacts, solar energy can reduce electricity costs, making a property more attractive to tenants who are looking for a green building. All of these things add up to increased property value and an enhanced brand image.
“High energy costs are a key consideration for everyone. People are trying to address inflation-driven high energy costs, and solar offers a solution,” explains James Rector, Director of Solar Lending at Sunwest Bank, a bank that specializes in solar financing. .
Regulations in states such as California, are making the push towards solar even more rapid.
States such as California have been at the forefront of solar adoption for years now–and for good reason: regulations require all new commercial projects to include some sort of renewable energy system, making it easier than ever (and more important than ever) for developers to invest in solar panels.
If you’re an investor in commercial real estate, incorporating solar energy into your property is more than just a good idea–it’s a smart investment. Solar power has been proven to reduce operating costs and increase property values by as much as 15%. It also reduces carbon dioxide emissions and utility bills for tenants. With so many benefits available to those who choose to invest in sustainable practices like solar paneling on their buildings, it’s no wonder that many states are adopting regulations requiring more commercial real estate properties to incorporate them into their designs.