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
| Apr 24, 2013
BOMA’s 360 Performance Program approaches 600 building designees
The Building Owners and Managers Association (BOMA) International conferred the BOMA 360 Performance Program® designation upon 44 properties in major commercial real estate markets across the U.S. in the first quarter of 2013.
| Apr 24, 2013
New Mexico court strikes down move to repeal energy codes
The New Mexico State Court of Appeals struck down an attempt to repeal energy-efficient building codes.
| Apr 24, 2013
Los Angeles may add cool roofs to its building code
Los Angeles Mayor Antonio Villaraigosa wants cool roofs added to the city’s building code. He is also asking the Department of Water and Power (LADWP) to create incentives that make it financially attractive for homeowners to install cool roofs.
| Apr 17, 2013
Army's FY 2014 $130 billion budget includes $2.3 billion for construction
The U.S. Army submitted a $129.7 billion budget for fiscal year 2014, $2.3 billion of which is allocated for military construction, army family housing, and base realignment and closure.
| Apr 17, 2013
Leonardo Academy to develop sustainability master plan standard
Leonardo Academy launched the development of a standard for sustainability master plans using the American National Standards Institute (ANSI) process to define sustainability goals and achievements for regions, states and campuses.
| Apr 17, 2013
Fenestration Council allows some shading system, dynamic glazing to be rated for U-Factor
The National Fenestration Rating Council (NFRC) approved changes to its NFRC 100 and NFRC 200 standards, allowing certain shading devices to be rated for U-factor and Solar Heat Gain Coefficient.
| Apr 17, 2013
LEED 2009 quarterly interpretations, addenda now available
Quarterly interpretations and addenda to the LEED 2009 rating systems and reference guides are now available.
| Apr 17, 2013
DOE’s Lawrence Berkeley Lab researchers developing new indoor air pollution standards
The U.S. Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab) researchers are working on new building standards after discovering previously unknown indoor air pollutants.
| Apr 16, 2013
RMJM acquired by Duthus Investments for £12 million
Sir Fraser Morrison, the owner and chairman of architect RMJM, is the backer behind the investment firm that bought RMJM for £11m in late March.
| Apr 10, 2013
ASHRAE publishes second edition to HVAC manual for healthcare facilities
The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) has published a second edition of its “HVAC Design Manual for Hospitals and Clinics.”