Unlocking New Opportunities and Revenues in Commercial Real Estate with Community Solar
The commercial real estate market is in the midst of a massive transition. Community solar projects can safeguard and transform commercial properties -- with significant benefits for property owners, managers, and the local communities they serve.
Current projections for the commercial real estate (CRE) industry vary wildly, from a potential rebound to a looming collapse. High interest rates and low occupancy levels are challenging property owners, and banks are preparing for default risks. Despite these differing outlooks, most would agree that rising costs, such as energy expenses, must be reduced while new revenue sources are revealed.
How can CRE owners get ahead of the situation, prepare for the transition and even improve their bottom line? Many are finding an attractive solution in transforming underutilized rooftops, land and parking lots into community solar projects, creating additional income streams while strengthening ties to the local community.
How community solar works for CRE
Community solar projects extend the benefits of clean energy to renters and to those unable to install solar on their homes or properties due to cost constraints or inadequate roof space. While there are many models of community solar today, the underlying principle remains the same: shared access to locally produced clean energy.
CRE owners can act as a host for a community solar project by leasing previously unmonetized space to a solar developer, who handles the design, installation, and maintenance of the system. In the case of EDPR NA Distributed Generation (EDPR NA DG), the developer acts as a long-term partner to the CRE owner, handling the operation turnkey, with minimal disruptions to the day-to-day operations of the property.
Case In Point: Solar as a Long-Term Tenant for Retail Centers
As the CRE market continues to shift to multi-use properties, community solar is an ideal fit for many types of real estate, particularly retail centers.
US shopping malls have been declining since the 1980s, and the pandemic accelerated this shift. But that doesn’t mean their footprints aren’t being repurposed into useful new space.
Some malls are being turned into sports facilities or even indoor pickleball courts; others are being reimagined into innovative consumer experiences, art districts or community hubs. In every case, having solar as a long-term tenant is one way to create resilience, build community, generate new revenue streams, and achieve higher standards of sustainability.
Key benefits of community solar for commercial real estate owners
Hosting a community solar project offers four key advantages to property owners:
- Secondary Revenue Stream: Leasing rooftops, parking lots, or adjacent land for a community solar project provides a reliable, secondary source of lease revenue.
- Community Engagement and Environmental Stewardship: By enabling local residents to subscribe to the community solar project and receive monthly reductions on their energy bills, you demonstrate a strong commitment to the local community and to environmental sustainability.
- Management Free: Once installed, local residents can “subscribe” to the community solar project and the customer service for those subscribers is handled by the solar developer or by a third-party subscription service. This relieves the CRE owner from any ongoing administrative oversight.
- Positively Impacting Low-to-Moderate (LMI) Communities: A community solar project can include opportunities for the CRE or corporate anchor to positively impact local community economics, by purchasing from EDPR NA DG’s ImpactREC™ Program and channeling electricity savings directly to low-income households or funneling revenue towards a Community Impact Fund (CIP) that supports workforce development or weatherization efforts in historically marginalized communities.
In addition, the CRE owner has the option to subscribe to the project as a utility customer, and/or on behalf of their tenants. Property owners who choose to foster greater connections with tenants and clients while lowering their own bills as well.
Community solar growing nationwide
Community solar projects are on the rise in the United States. The US community solar market has tripled in size since 2020, according to research firm Wood Mackenzie. An additional 7.3 GW of community solar is expected to be installed through 2029, bringing the cumulative total to over 14 GW.
Several states are advancing legislation to increase community solar, supporting carbon-reduction goals and equity efforts. Illinois, Virginia, Maryland, Pennsylvania, New Jersey, and New York are leading the way with policies encouraging community solar development.
Working with EDPR NA DG
EDPR NA DG develops community solar projects in partnership with CRE owners, with flexible options to suit the needs of each customer. We have the knowledge and experience to support property owners and their tenants with reliable, lower cost energy that provides a predictable revenue stream while benefiting the community and the planet as a whole.
Contact us today for a property proposal.
Contact Information:
Eric Misbach,