What have your experiences been like with solar on commercial properties?
Hi all!

I'm doing some market research on the commercial solar business and I would love to hear about any experiences you all have had. Have you gone solar with any of your buildings or considered it? If you did go solar, what was the installation process like and are you happy with the result? If you chose not to, what concerns did you have? 

Thanks so much in advance!!
[{"id": "hx9cpk6", "text": "We have thought about it, but the installation costs were high and the power generated wasn't anywhere close to current consumption levels. Pay back would have been way too long.", "replies": [{"id": "hx9d9hq", "text": "Ah that makes sense! Did you guys consider financing the installation to avoid the upfront costs? If you don't mind my asking, what kind of building was it and which state? \n\nThank again! This was super helpful!", "replies": [{"id": "hx9e3yy", "text": "Financing isn't necessary and we have the ability to amortize the capital project and recoup costs through operating expenses to a certain degree. The building is low rise class a office. Plus located in WA, solar sucks here. If we want to spend a large chunk of money on sustainable projects, a green roof would pay off quicker.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hx9vh2d", "text": "I work in commercial solar lending. Only works under very specific circumstances: \n1. Large/medium energy consumption\n2. Price of local utilities vs price of panel installation  \n3. Recently renovated roof (solar panel lifespan should be in line with the roofs)\n4. Roof type can impact panel output (roof angle in relation to sun, along with the roofs composition) \n5. Solar investment tax credit (ITC) will recoup you 26% this year (must pay 26% of panel installation cost in federal taxes or use an affiliate to buyout your ITC savings) \n6. You are ok with the idea of paying yourself a dividend in 3-7 years time \u2026if you are financing the panels. If paying cash this is essentially instant dividends. \n\nMy advice would be to add some little by little. Inverter costs are the most expensive and they will go down steadily. Also the ITC will be here to stay, disregard current policies or the rush to use it. \nDo your due diligence and don\u2019t pick a bad contractor. \nThis year, Tesla panels (not the tesla roof) are known as the industries best. \nIf there is a triple net lease, explore PACE finance if you are the commercial owner. You can collect the solar ITC and pass the cost of the panels to your tenant, while giving them a break on utilities - WinWinWin", "replies": [{"id": "hxb1kpw", "text": "I own a 100,000 square foot office building in Indiana. My current cost/kWh is $.145. It\u2019s single story and has a relatively new roof. I have been replacing my electric resistance heaters with natural gas and currently consume 1.5m kWh/year. \n\nMy power company charges me a minimum demand factor  of 500/ month even though I use less than 1/2 of that 8 months per year and consume 500 during the winter months. \n\nI am going 100% to natural gas. I estimate my annual electric consumption to be under 1.0m kWh once  they are all replaced.\n\nIs my property a candidate for solar?", "replies": [{"id": "hxb5gqu", "text": "That sounds rather complex. I am by no means an expert on commercial solar. \nYou may benefit from an energy analysis and recommendations from that report. Also, reach out to a local solar contractor to get a quote to see how viable it is for your property.", "replies": [], "depth": 3}], "depth": 2}, {"id": "hxc0aj7", "text": "&gt; If there is a triple net lease, explore PACE finance if you are the commercial owner. You can collect the solar ITC and pass the cost of the panels to your tenant, while giving them a break on utilities - WinWinWin\n\nCan you expand on the tenant paying for it?  I feel like most leases would prohibit this", "replies": [{"id": "hxc7wvq", "text": "PACE (Property Assessed Clean Energy) financing is secured and paid for with a tax lien. NNN leases are subject to increases in property taxes. You are correct in assuming the lease may have provisions against this - but like the solar panel viability, this is a case by case basis. Or lease by lease basis if you will", "replies": [{"id": "hxce4ao", "text": "thanks I am not familiar with PACE.  Now I have something to google!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "hxg98o6", "text": "Thank you so much for your response! It is incredibly helpful!  \n\nIt seems like despite the challenges you listed above, there are still far more commercial buildings where solar would be a good investment than there are buildings with solar panels. I'd love to hear your thoughts on the biggest pain points slowing down the growth of commercial solar and if you see any of them changing over the next few years?", "replies": [{"id": "hxiha1f", "text": "The permitting is a pain and varies from one municipality to the other - with CA being the worst. The savings from doing a large enough system can be offset by the cost of engineering, architectural, etc. The laundry list of requirements makes it difficult for just anyone. \n\nThe biggest issue is that utilities have to be expensive enough for it to make sense for you. This is why there is so much solar in CA but little to none in FL\u2026 the sunshine state.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]