Landlord Solar Investment: Enhance Cap Rate & Optimize Site Economics

Overview.

A strategic ownership model for multi-tenant commercial properties, where we design solar systems to prioritize the owner's ROI—either through expense offsets for common areas or grid exports for passive income, based on local utility tariffs and net metering rules. This balances self-consumption and revenue generation for optimal site economics.

Project goals.

Our Landlord Solar Investment solution boosts property performance by engineering solar for maximum owner yield. Key benefits include:

• Guaranteed Capitalization Rate (Cap Rate) Enhancement: Solar installation drives a double-edged financial benefit: it either dramatically reduces operating costs (for common areas) or generates new revenue from selling power to the grid. This direct increase in the Net Operating Income (NOI) significantly boosts your property's valuation.

• Full Tax Credit Capture for the Owner: The property owner fully captures the significant 30% Federal Investment Tax Credit (ITC) and accelerated depreciation benefits. This directly reduces the net system cost and maximizes the project's after-tax Return on Investment (ROI).

• Optimized Financial Strategy (Offset OR Revenue): We model the system to execute the highest-yield strategy based on local tariffs: Expense Offset: Maximize self-consumption to avoid paying high-cost utility rates for common areas. Revenue Generation: Maximize export to the grid to earn a passive income stream, where allowed by regulation.

• 0% Tenant Meter Disruption: The system is engineered to function completely independent of tenant meters and billing. There is no need for complex sub-metering, tenant contract changes, or disruption to existing lease agreements.

• Increased Asset Competitiveness & Appeal: Investing in on-site renewable energy modernizes the asset, improves its ESG score, and secures lower operating costs, making the property significantly more attractive to both institutional buyers and future tenants.

"Supercharge your site's economics with solar that pays dividends."

Key solutions implemented.

We customize for landlord priorities with rigorous modeling:

• Tariff-specific system sizing and configuration to favor offset or export based on load profiles and regulations.

• Independent metering and controls that isolate owner benefits from tenant usage.

• Integrated financing and tax advisory to streamline ITC/depreciation claims.

Outcomes achieved.

• Valuation Lift: 2-5% Cap Rate compression through NOI growth, adding $50K+ to asset value per MW installed.

• Tax Optimization: Full 30% ITC + depreciation offsets 40-60% of costs, achieving 10-15% after-tax IRR.

• Operational Seamlessness: Zero tenant impacts, with 98%+ system uptime and minimal O&M (~$0.01/kWh).

• Market Edge: ESG upgrades boost occupancy by 5-10% and appeal to green-focused investors.