‹‹Many companies and organizations have purchased and installed enough clean energy to power most and sometimes all of their power needs, according to a GreenBiz article written by Peter Rumsey, CEO of Point Energy Innovations. However, commercial real estate (CRE) properties have been slower in the race of incorporating solar on their rooftops. Installing solar on CRE properties provides a viable opportunity for property owners and developers to increase profits, energy, and financial security. Solar provides these advantages by reducing utility costs, increasing rents, and decreasing vacancy rates.

According to a recent report from the Solar Energy Industries Association (SEIA), the cost of installing solar on CRE properties has decreased by 10% year after year. This enables CRE properties and developers to install solar at a fraction of the cost. Once solar is installed, CRE properties can expect to save 20-40% on their electricity bill, increasing a company's overall margin.

CRE properties can expect increased cash flow with increased rents. According to the Department of Energy, LEED-certified buildings generate higher rents and lower vacancies. The premise is that more commercial tenants in environmentally-conscious markets are willing to pay higher rents to represent their employees, customers, and overall brand, thus contributing to many commercial tenants' socially conscious initiatives. Overall, this means that CRE properties can charge higher rents that many tenants are willing to pay.

Solar energy can be used as a leveraging tool to reduce vacancy rates, providing CRE properties with an additional boost in financial security. Property owners who install solar panels can offer their tenants lower electricity costs to extend their lease term. For example, a CRE property may have a 4-year lease agreement with a tenant; however, that same property can offer a 30-50% reduction in energy costs if the tenant agrees to extend their lease to 8 years instead. This should be evaluated with state laws, as some states limit this process.

With so many benefits to solar, it's no surprise that many CRE properties can expect to earn higher returns and provide solar energy to their tenants when they install solar. Commercial solar has emerged as the new gateway in energy production and consumption, providing CRE properties with numerous benefits such as increased profits, energy, and financial security.