With new energy efficiency and solar headlines making the news each day, you might be wondering what it is all about and whether you should look into going solar for your multifamily project. We’re here to simplify that process for you with a few of the benefits of adding solar to a high-performance multifamily project and the returns you might expect to see.
As building performance and solar power experts, we can vouch for the many benefits that solar power can have on your multifamily project. Whether it’s gaining more points toward one of the many nationally recognized green certifications we work in, lowering your cost in common areas, or the added marketability of being more sustainable, going solar can provide a significant advantage in hot markets. Although each building efficiency certification program looks at solar a little differently, we’re here to guide you through these programs to find the most benefit for you and your building by adding rooftop solar
We work a lot with multifamily project owners, both in assisted living as well as multifamily or mixed office spaces. Right now, we’re seeing a lot of interest in adding solar to multifamily projects because of the different incentives from Duke Energy as well as some of the federal tax credits.
Some of the questions that we get asked revolve around owners that are going to buy and hold an asset versus those who are going to flip it. The good news is that both types of ownership are really well suited for solar. Right now we’re seeing historic lows on solar panel pricing and very much a peak market place for the incentives.
With for-profit buy and hold entities, we’re seeing between a 2.5 to a 3.5 year break-even between their first dollar cost and when all the incentives flow down and back to the project owner — that’s typically an 18% internal rate of return after tax. On the non-profit side we also see a lot of non-profit condo owners associations who are building solar and holding it at that level. These entities are getting a slightly longer 8-9 year break even on their projects and a 10-11% internal rate of return.
As complex as those two scenarios sound, we’re here to help find a solar solution that meets your project goals — whether that’s offsetting utility costs in common areas, differentiating your project in a hot market, reducing your carbon footprint, or anything in between. If you’ve got bigger questions about the financials, we also include a free hour of consulting with our tax and CPA firm who’s at an arms length. They’ll give you guidance on your own tax situation, saving your CPAs a ton of billable hours trying to figure out the federal renewable energy incentives and all the bonus depreciation incentives that come with the new tax plan.
We’d love to hear your questions about adding solar to your next multifamily project. Each multifamily solar project is a little different based on the building and ownership structure, but we’re confident our team can find the right solar solution for you.
Here are a few things we need to know to get you moving on your solar journey:
Our dedicated multifamily specialist is happy to answer any questions!
We’re happy to help find the program that’s right for you!