The 2.4-megawatt SunPower T5 Solar Roof Tile system represents an $11.5 million investment, according to Mike Cowley, president of Cowley Cos. He tells GlobeSt. that the installation, which comprises 6.5 acres of solar panels from San Jose, Calif.-based SunPower Corp., will be operational in August. Empire Power Systems is handling the installation.

The new solar power system will allow Cowley Cos. to provide tenants with electricity that is not only renewable, but also about 25 percent less expensive than typical industrial electric rates. "From a competitive standpoint, being able to offer lower electricity rates will make our property more attractive to tenants," Cowley says.

Cowley Cos. is off-setting the cost of the solar installation with federal tax credits and a production-based incentive provided by Arizona Public Service (APS). Through the Renewable Energy Incentive Program, APS offers incentives to customers who add renewable energy systems to their homes or business. The program is funded by APS customers and approved by the Arizona Corporation Commission.

The federal tax credit program provides credits for up to 30 percent of the project's total cost, while the APS program reimburses 60 percent of the total cost. "Over a 12-year period, the total investment will be paid back," Cowley tells GlobeSt. "We wouldn't have been able to invest in the panels without the tax credits."

The solar installation is Cowley Cos.' first green initiative. The firm owns a portfolio of 1.5 millions square feet of industrial space in Phoenix, along with finished lots and vacant land in Arizona, Texas, Colorado and Idaho.

Originally developed as a build-to-suit for Fleming Foods, the 27th Avenue building offers 250,000 square feet of refrigerator and freezer space. It is 70 percent occupied to a number of food service tenants including Service Systems of America and U.S. Food Service. It leases for an annual rate of $3.60 per square foot to $8.40 per square.

"With the solar installation, we hope to facilitate corporate environmental mandates," says Gary Tenney, a senior vice president – industrial with Colliers International's local office who handles leasing for the property. "Almost every company has sustainability goals, and we think our renewable energy will help them live up to those goals."