The benefits of installing solar arrays on the rooftops of commercial buildings continue to grow.
Reduced hard costs due to falling prices, along with a more favorable regulatory environment, have magnified potential income from rooftop solar. The most common financial arrangement has been for the property owner to own the solar system, pay for the installation, and use the energy generated by the system to offset utility costs via net metering.
Another option is a solar site lease model. The owner of the property leases roof space to an experienced solar developer that finances and owns the solar array. The owner of the property makes money from rooftop lease payments—typically for 20+ years.
A similar option to solar site leases is a Power Purchase Agreement (PPA), in which the property owner signs a contract to purchase electricity generated by the array at rates below the utility retail rate. The solar developer pays for the system and uses the roof space at no cost.
Beyond such direct financial benefits, rooftop solar can help properties achieve compliance with ever more stringent environmental regulations. For example, some jurisdictions have passed laws that will penalize buildings that have not taken steps to reduce their carbon emissions.
Related Stories
Codes and Standards | Jan 30, 2017
Denser development could reduce emissions more than building energy retrofits
More tightly packed cities would cut building emissions significantly, study says.
Codes and Standards | Jan 27, 2017
Calif. legislator proposes statewide solar mandate for new buildings
It would be the first such requirement in the U.S.
Codes and Standards | Jan 25, 2017
Standard baseline for measuring building efficiency needed
EUI could push sustainability through market-driven approach.
Codes and Standards | Jan 23, 2017
Workers, local officials rally for new construction safety law in New York City
The new law would require those who work on 10-story-plus buildings to go through an apprenticeship program.
Codes and Standards | Jan 23, 2017
Prominent Atlanta construction executive faces charges in $1 million bribery scheme
The company has worked on some major projects, including Hartsfield Airport.
Codes and Standards | Jan 20, 2017
New resource lists green incentives by state
USGBC's new Public Policy Library includes tax and energy benchmarking policies.
Codes and Standards | Jan 18, 2017
How green leases benefit owners and tenants
Agreements to spur efficiency upgrades are slowly gaining popularity.
Codes and Standards | Jan 17, 2017
Intl. Code Council looks into code changes for cross-laminated timber structures
Most codes limit CLT structures’ height.
Codes and Standards | Jan 16, 2017
Building codes for existing buildings evaluated in new white paper
The paper examines implementation, enforcement challenges, and changes needed in new code editions.
Codes and Standards | Jan 13, 2017
New BIM guide for owners released
National Institute of Building Sciences releases a manual for developing standard set of BIM documents.
