As part of a value enhancement strategy, Ogilvie Properties selected Namasté Solar to install a 189-kilowatt rooftop solar array on its CubeSmart self-storage building. The solar array provides reduced energy costs, increased net-operating income and increased building value. The system is projected to produce 272,917 kilowatt hours per year.
Director of Commercial Project Development
The opportunity to earn a compelling ROI by installing clean solar power on your commercial property has never been greater than it is now. Recent changes in corporate tax structures allow 100 percent depreciation in the first year for solar photovoltaic installations. In conjunction with the Federal Solar Investment Tax Credit (30% in 2019 and 26% in 2020), these tax benefits alone can total more than 50 percent of the system cost in the first year. As the economics of solar have improved, solar energy is an investment that businesses can no longer afford to ignore.
The reasons for going solar are as varied as the commercial property owners who have already made the switch to on-site solar across Colorado’s Front Range. Some choose renewable solar power to stabilize their electric bill and reduce exposure to rising utility costs by locking in fixed rates. Other investors have used solar to increase building value and attract and retain tenants who want to be seen as environmental stewards through the integration of solar across their portfolio. Finally, some have focused on strengthening their corporate brand and more closely aligning with the values of their customers by investing in solar and differentiating their business.
What do these businesses have in common? Each has increased cash flow, boosted net operating income and raised the value of its property with solar. The growth in corporate solar procurement is due to the economic value proposition of solar, rather than the environmental benefits alone.
Now is the time to go solar, since many of these lucrative incentives will decline in the near future. In addition, Colorado’s Commercial Property Assessed Clean Energy program (C-PACE) now allows businesses to implement solar with no money out of pocket. In some service territories, utility savings can outweigh the annual payment on the note, enabling projects to be cash-flow positive from day one.
C-PACE also allows building owners to bundle the cost of a new roof, solar PV systems and even LED or heating, ventilation and air-conditioning upgrades into one fixed-interest loan with terms up to 25 years. The unique structure removes all risk for property owners, as the nonrecourse financing is tied to the property via a special tax assessment facilitated by the county tax assessor. As a result, C-PACE financing can transfer to the next owner if the property is sold.
To capture these significant benefits and maximize the ROI, commercial businesses and building owners need an experienced solar project developer to design, engineer and install a solar system tailored to their specific needs. Working with a local installer that can handle every project detail and has C-PACE expertise and relationships with other energy-efficiency companies will simplify the experience and provide a turnkey energy solution. Going solar this year offers the opportunity to increase cash flow, NOI and property value – all with $0 out of pocket and over 50 percent in tax benefits.
Namasté Solar provides customized, turnkey solar energy solutions that maximize ROI for homeowners, commercial property owners, and utility-scale developers. Founded in 2005, Namasté Solar is an employee-owned Colorado Public Benefit Cooperative and Certified B Corporation that has installed over 7,400 solar energy systems totaling over 100 megawatts. Click here to learn more about solar for your commercial property or business or to speak with a non-commissioned solar energy expert.