Rooftop Revenue: A Forward Trend in Urban Real Estate
Solar options are a great way to monetize on sustainable property developments. In cities where space is a premium, developers continually seek out new ways to capitalize on their rooftops. Landlords are transforming the traditionally unused space by creating smart roof options, which benefit building owners and the community.
Rooftop solar systems are becoming more and more mainstream, but not everyone realizes the potential of this natural energy source. Solar energy is not just for those who want to live “off the grid.” There are benefits for all types of buildings, including those in metropolitan areas. Just last year a WB Mason facility in the Bronx became one of the largest commercial buildings to add rooftop solar panels as part of the New York Million Solar Strong Campaign.
The power produced by rooftop solar energy systems on large buildings can be either consumed by the building or sold to residents in nearby neighborhoods, creating a new revenue stream for building owners. This also enables business owners to do their part by adding generation to the grid during peak hours, at times when it’s needed most, to curb potential power outages and price surges.
Many cities provide incentives for those who add solar panels to their buildings. In New York, building owners are eligible for a property tax abatement up to $250K, cash rebates, and federal tax credits.
While there are load-bearing requirements of installing solar panels on a building’s rooftop, the maintenance is rather minimal. Many solar rooftop projects are cash positive on the first day of installation and continue to generate revenue for at least 25 years, creating significant return on investment (ROI) for this commonly unused space.
In addition to solar panels, developers have begun installing batteries to store excess solar energy. Today’s batteries are more efficient than ever before, and offer a valuable enhancement to solar energy systems. Combined, they create a more efficient system of harnessing and distributing solar power. Solar and storage systems increase the ROI for rooftop solar projects even further, because they allow energy to be stored and sold back to the grid during peak demand hours, a time when energy generation is the most profitable.
While energy storage is a great benefit to businesses interested in solar energy, there are additional building and safety regulations for installing large batteries and storage systems. NYC’s desire is to increase the city’s solar energy production, and is currently working with developers to support this new technology. If solar energy storage sounds positive for your building, we suggest asking a solar expert or developer in New York to verify qualifications.
Overall, solar rooftop options, with or without battery storage, are a great investment for both existing buildings and new construction. Learn more about the latest Community Solar Farms in New York, including types of buildings that qualify for this new sector of energy revenue. Click here to read case studies…