Solar Electric Assessment: Is a Solar Panel Array Right for Your Building?

A solar electric array can be one of the best green energy moves you can make as a building owner, landlord or property manager. It can cut your energy costs, increase the value of your building and attract tenants who are particularly interested in green energy (a critical factor during this recession). However, before you simply decide that solar electric is for you, your building should go through an assessment to determine the availability of sunlight, the roof space available, and the recovery cycle for the purchase cost of the system.

With this information, you can make an informed decision about solar electricity.

The Shape, Size and Direction of Your Roof

Maximum benefits fall on those with unobstructed southern exposure. Other directions can succeed as well, but a good unobstructed southerly view will maximize your electric production.

Remember that solar panels are just that - panels. They come in various sizes and form arrays. The total square footage available and shape of your roof dictate how many panels you can support. If there are many obstructions scattered on the rooftop, you may use fewer panels (producing less electricity). Of course, the number you decide to utilize depends on your budget and needs.

Proximity to the electrical system is not a major concern with solar electric systems. The solar PV panels produce electricity and feed the power over copper wire to your inverter (which converts the solar produced DC electricity into AC current for use in your building).

Solar Energy Tax Credits & Incentives

The cost of any system - green energy or otherwise - is a concern. Tax incentives, tax credits, rebates and other measures are in place to lower the cost of green energy. The federal government, for example, currently pays 30% of the cost of your system (in the form of a dollar-for-dollar tax credit) with no maximum cap! Many states also have programs, as do utilities. The Internal Revenue Code authorizes depreciation of the entire system over a five-year time span.

When a property owner adds green energy, whether to commercial, industrial, retail or multi-tenant housing, incentives are available. With these incentives, you can generally recoup the cost of a solar energy system in the 3-6 year range. For more information, see dsireUSA.org

Direct Cost Savings from Solar Energy

Aside from the tax benefits, there is the clear economic benefit of reducing your dependency on the power grid by producing your own electricity. This is an environmentally sound decision and helps you lower your monthly utility bills. When oil spiked, electric prices skyrocketed. This can happen again. Dollars spent today on alternative energy, such as solar panels, can pay for themselves in just a few short years, and perhaps less if electricity costs rise again. Whether you generate 20%, 30% or more of your power needs, you are using electricity you've captured from the sun, reducing demand on fossil fuels, and lowering your monthly utility bills.

Solar Energy Attracts New Tenants

One of the biggest gains you may see is not from solar energy itself - it is from tenants. In this economy, it is a tenants market, and there is a glut of inventory available for them to choose. Some landlords are giving away tremendous concessions to sign tenants. Wouldn't you prefer to attract tenants into your building because you offer a green building?

Solar energy may save you hundreds or thousands of dollars per month on utility bills, but it may bring in ten times that in rent. If you have vacancies and are able to attract tenants who are socially aware and prefer to rent from an environmentally responsible landlord, how much is that worth to you?

Whether the tenant is an advocate for the green energy cause, mildly concerned or simply "going green" for the good press it brings, another tenant in a green building is a good thing. Having that tenant in one of your buildings is even better.

With falling equipment costs, tremendous tax incentives and the opportunity to attract tenants, are you ready to consider adding solar energy and other green energy sources to your buildings?