Listing the many benefits of commercial solar power for businesses is easy, but quantifying their value can be more difficult. The impact on property value is a prime example. While it is likely true that a building fitted with high-quality solar panels for commercial property is more valuable than a structure that relies on energy generated from fossil fuels, which determines exactly how much it may be more valuable. If increasing property value is an important factor for your organization in justifying the cost of commercial solar panels, this article can help. To get started, let’s take a quick look at non-commercial residential solar installations.

A study by Zillow indicated that homes with solar panels sell for 4.1% more than comparable homes without them. Although some reports indicate a similar correlation for commercial property valuations, few studies have been conducted to verify comparable results for commercial sites. However, the overall conclusion is clear: adding solar power has the potential to increase the selling price of a property.

The specific impact of solar on the value of commercial property largely depends on the answer to each of the following questions:

Is the organization installing solar power on the building/property for the project? As might be expected, the greatest potential added value occurs when the organization adopting commercial solar power owns the site and the installed solar equipment. Purchasing commercial solar equipment directly gives customers access to tax incentives, reduced energy costs, and the ability to apply for renewable energy credits (as well as the ability to promote the green attributes of their solar system). Increasing the value of the commercial property is also part of this list of benefits.

Does a rented property offer the benefits of commercial solar? Many organizations rent out their business facilities, but that doesn’t mean they can’t take advantage of it. Most real estate costs (e.g., insurance, property tax, utilities) are paid by the tenant (or pass through them in the form of a higher rent). Installing commercial solar power could reduce the energy costs that the tenant would have to pay and thus gain a positive public perception by having solar power on their site.

What is the added value for owners by providing solar energy to tenants?

Here are some advantages that tenants can have when trying to persuade a landlord to install commercial solar installations:

• Tenants who benefit from lower utility bills may be more satisfied and willing to stay longer, reducing the time and expense required to find new tenants.
• Properly structured power purchase or solar rental contracts can potentially be transferred to new tenants if the old tenants, move.
• Properties with solar installation could also benefit from the growing number of organizations taking corporate social responsibility more seriously.

Are there other advantages of solar energy that ultimately have an indirect impact on the value of the property?

Another less obvious, but notable, consideration is the fact that few things like more discussion about “environmental awareness”, “social responsibility” and “thinking ahead”. In addition to enhancing the public image, a commercial solar system has all of the benefits and cost savings that are environmentally friendly while also updating the physical appearance of a building. In general, better-looking properties translate into a higher value for money when evaluating the advantages and disadvantages of commercial solar energy needs to put property value into the equation.

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