Savings Opportunities for Landlords Using Solar Energy

You have probably come across lots of information - on this site and on others across the internet - which encourages you to go green with your building. Going green can be expensive, but is it worth it? Absolutely! With tax credits, rebates, accelerated depreciation and more, your savings will be huge - and an investment in green energy can yield a great return than virtually any other investment.

Whether you install solar panels, solar heating tubes or wind turbines, once installed you will produce free electricity and heat for years to come. You will significantly reduce your energy costs, increase the value of your property and attract new tenants who are focused on green energy.

Crunching the Numbers on Green Energy

If you are thinking of installing any kind of green energy system (whether solar panels, wind turbines or solar heating tubes), you must carefully run the numbers to determine the true cost. This includes assessing current utility costs, projecting the energy the system will produce, factoring in tax credits and incentives and more.

For example, the Business.gov website from the US Government provides a number of spreadsheets which allow you to calculate how much you could be spending, according to how your tenants use their current business equipment. There are spreadsheets here which focus on food service equipment, heating, office products and other energy consuming items. Visit http://www.business.gov/expand/green-business/energy-efficiency/calculate-savings/energy-saving-calculator.html for details and sample worksheets.

Save Money Through Energy Production

Aside from the positive environmental impact of producing green energy, you can significantly cut your monthly electric and heating expenses. Many landlords will recoup their entire investment in 3 years or less - that's a 33% annual return, and beyond that, you are producing energy for free. This is energy that comes right off your utility bill, moving that savings right to your bottom line.

Save Money Thourgh Energy Management

Tremendous amounts of energy are wasted in buildings every day. Subtle adjustments to your building systems should help you reduce the costs. For example, where is the thermostat set in the evening? If you have a commercial property which is not occupied at night, can you save significantly if you reduce the temperature just two degrees, and bringing the temperature back up before the building opens, so tenants arrive to normal conditions? Are you already turning the heat down at night, but turning it too low, requiring excessive heat production in the morning? An energy assessment can help you build a strategy to reduce your costs.

By finding out how your building operates today, from an energy prospective, you can get a much better idea of how much you can save in the future - and decide what you need to do to achieve that savings. Going green financially beneficial, environmentally responsible and a fantastic way to attract new tenants.