Solar energy generation on buildings can become an important financial factor for multifamily owners, developers, and operators. Which is a good thing for them, because in many important metros, an increase in supply has meant falling rents, particularly in higher-end buildings.

A new example is PearlX, which advertises that multifamily properties can increase NOI and meet ESG goals with "no-cost solar, storage, and other electrification amenities." The company provides turn-key solar systems in California and Texas for no cost and leases the necessary rooftop space. They provide electric to the tenants, who then pay PearlX for electric, presumably at lower cost than the existing suppliers. Excess power can be sold back to grid operators during peak demand times.

The revenue stream can last 30 years, according to the company, "as well as a higher value on the property, leading to easier financing." PearlX recently worked with smart energy firm SolarEdge Technologies on a project in Houston that started in 2022. The companies claim that the renters reduced metered energy use by $60 a month and didn't lose power during two grid outages for a total of 10 hours with on-site batteries.