ROI from the Rooftops: Solar Power Better Returns For Landlords and Investors
With most operations – and therefore energy consumption – taking place during daylight hours, businesses are prime candidates to make real savings on their overheads by switching to solar electricity. But with many leasing their commercial premises, it’s not always as simple as deciding to do it.
Depending on things like their tenancy length, lease terms and monthly electricity costs, the tenant may choose to negotiate their own solar system at the premises but most commonly it’s something the Landlord coordinates and either pays for upfront, enters a payment plan on or considers an option like a Power Purchasing Agreement with a provider like OTI Power.
That’s where you can come in as the Commercial Leasing specialist. By starting the conversation with Landlords you can help them take their return on investment sky high.
Solar Can Increase Landlord’s Yield
No doubt you’re already working to broker the best deal you can for your tenants and landlords with a lease length, terms and rental rate that balances a good deal for both parties.
It’s no longer just about how much money a landlord can make per square metre on their floor. By installing a solar system, the Landlord unlocks an additional revenue stream that has the potential to increase the value of the premises while providing a viable way for tenants to benefit from reduced guaranteed pricing for their solar energy consumption.
If the property generates more power than it uses, the Landlord’s nominated power provider will buy the energy back and pay via a credit on the bill. The tenant still pays for their consumption at the negotiated reduced rate.
Solar Makes Properties More Attractive to Tenants
Solar energy has multiple benefits for tenants. Not only do they reduce overheads by having access to guaranteed reduced energy rates but they also get the social impact benefit of using a sustainable, environmentally friendly source of electricity.
It’s an easy way to provide tangible benefits for tenants that make properties more enticing to stay in long term.
Billing for electricity usage has never been easier and OTI Power can talk your landlords and tenants through how this works.
Solar Systems Installed At No Cost
OTI Power specialise in supplying solar systems to commercial premises with an emphasis on designing systems that deliver financial benefits to customers and their tenants. One Brisbane customer was able to save over $7000 a month.
While purchasing the solar system outright is an option that OTI Power can discuss with the property owner but there are also ways to have solar at any commercial premises without any upfront fees or ongoing costs beyond electricity consumption. There are some benefits to upfront purchase including taking advantage of any available government or industry rebates and potential tax breaks and of course, the system “paying for itself” through electricity credits.
For landlords though, sometimes making provision for the infrastructure is easier. A Power Purchasing Agreement (PPA) means that a supplier like OTI Power own and maintain the solar system installed at a premises. The nominated electricity provider bills for usage or applies a credit, depending on the size of the system and the amount of power generated and used at the property.
Electricity usage is the only cost and negotiated rates with electricity suppliers are locked in for a fixed term at a lower rate than standard electricity grid prices. With no upfront costs and immediate savings available, a solar system with a PPA takes a lot of the guess work out of solar.
OTI Power Are Your Partners
Stop limiting your commercial leases to floor space and set up a time to talk to Paul and the team. We can tell you more about how solar works and give you all the information you need to guide your landlords and tenants into sustainable, affordable solar electricity options.
Read further blogs regarding PPA agreements by clicking here.
No-obligation consultation
If you are looking to install a solar system at Sanctuary Cove, Hope Island, Coomera or throughout Australia, be sure to contact the team at OTI Power.
The no-obligation consultation is completely free and you’re under no obligation to take up any of our services.