Doing the Numbers: Is Solar a Smart Investment?

Solar Photovoltaic (PV) systems have had a growth spurt in the past decade, and are drawing interest from the commercial real estate community.  With improved element performance and a reduction in installation and operating costs, more retail, industrial and commercial properties are adding solar power systems when building or renovating facilities.  If you’re considering buying, selling, developing or financing a property with a solar system or a solar development itself – a targeted solar due diligence assessment is required to accurately determine how the solar system will impact a property’s value.

Many things impact the value of a solar system – the weather, system efficiency, market forces etc.  Just last month, the Ivanpah Solar Electric Generating System (the world’s biggest solar power plant of its kind located near the California-Nevada border) reported significantly lower energy production than the owners expected during its first year of operation.  Thorough solar due diligence is critical to fully understand the performance and return on investment that can be expected from a solar system – and thus make educated business decisions regarding the value of solar to your real estate asset.