Across the US, CFOs are calling on their companies to dramatically cut real estate costs. With respect to cutting real estate costs, you can eliminate office space, close branches, consolidate locations, or take several other cost cutting measures.
Another option, rarely discussed, is to turn an unused asset into a highly productive asset.
What am I talking about and how can we do this?
Under the new Community Solar rules, a building (or land) owner can now lease their roof to the owner of a solar energy system. The system will be financed, constructed, operated, maintained, and disposed of by the system owner (the “tenant”). The building owner (the “landlord”) has one and only one responsibility; to deposit their monthly rent check.
Not only is this a win for both the landlord and the tenant, but it is also a win for the consumer; commercial, industrial, or household consumer.
Community Solar allows the owner of a structure (house, building, mall, etc.) to “go solar” without putting solar panels on their roof. All the consumer needs to do is to subscribe to the output of one of the solar energy systems we are talking about. By doing this, the consumer is going to get a reduction in their electricity costs “as if” they had produced the solar energy themselves.
The reduction a consumer receives is a 10% credit on their electric bill. (Note: The 10% discount does not apply of you are not buying your electricity from your local utility.) In addition to this, the landlord can also subscribe to the system and use up to 40% of the system output per meter in their building.
The benefits are obvious:
Landlord – Turns an unproductive asset into a productive asset and receives a new, long-term, stable income stream.
System owner – Finances, constructs, owns, operates, maintains, and disposes of the system. The system owner receives their benefits from the Federal and State solar energy incentives.
Consumer – Receives electricity at a lower cost.
State & Federal governments – Community solar helps support a state and the Federal government to achieve their renewable energy goals.
To learn more about your state’s community solar program, please call us at _________________.