There are many benefits to installing a commercial solar system for both landlords and commercial tenants. Understanding the viewpoint of all parties involved is the first step towards discussions with your tenant or landlord about commercial solar.

Landlords

If you are a landlord the installation of a commercial solar system can bring with it many advantages.

  • Installing commercial solar on your building can help make lease agreements more attractive and encourage tenants to stay longer.
  • Buildings may see lower costs of capital and higher market value because of this reduced risk.
  • With many large businesses now introducing renewable energy policies and setting renewable energy targets the marketability of a building that is green focused increases.
  • If the tenant purchases the solar system, the landlord benefits because the tenant will be invested in the property and would not likely move quickly.
  • Commercial premises can potentially gain a higher rent than ones without.
  • The financial incentives are decreasing the longer you wait. Currently in April 2021 with the small-scale technology certificates available you will save $51,134 on a 100kW System.

Commercial Tenants

Electricity costs are a large expense for many businesses. Even if you are leasing a building installing a commercial solar system with the approval from your landlord makes sense.

  • If your lease is 5 years or more then the you will see benefits of purchasing a commercial solar system yourself. The average payback period for commercial solar is 3-5 years and after this it is all savings.
  • The installation of solar panels doesn’t mean there’s a disruption to your business. Solar is installed on underutilised space, generally the roof, with very little disruption to business operations.
  • Avoid the increasing electricity prices and therefore create more financial stability.
  • Reduce operating costs. Electricity is a big bill for many businesses. Installing solar will reduce this cost.
  • Temporary full expensing. Eligible businesses with an aggregated turnover of less than $5 billion can deduct 100% of the cost of new eligible depreciating assets that are first held, and first used or installed, between 7.30pm AEDT on 6 October 2020 and 30 June 2022.

A good relationship between tenant and landlord goes a long way when discussing commercial solar options. Having a good honest chat about the benefits to each party will assist in the process. Make sure you are viewing it from both sides.

Stralis Energy are experts in commercial solar systems. For a free inspection and quote get in touch today.

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