While energy prices continue to rise, more and more businesses are turning to solar to reduce their operating costs. In the case of tenanted properties, one of the largest obstacles and challenges for tenants keen to go solar is getting their landlord’s approval. Traditionally, landlords often saw more the negatives to installing solar on their properties as significantly greater than the positives. Now however, landlords are getting savvier as more and more property owners and landlords are seeing the benefits of commercial solar energy for their buildings.
For many property owners/landlords, being able to provide long-term benefits to tenants is strategic to keeping tenants in their leases longer. Bridgefield Holdings, a large WA based property owner, saw the opportunity for a win-win scenario with their tenant, Total Marine Technology (TMT). TMT operate an energy-intensive, ROV manufacturing facility. Both parties, along with the property manager, Western Corporate, all mutually decided that, “alternative energy sources should be explored to allow for long-term cost savings.”
Todae Solar was then contracted to install a 100kW commercial solar system on the site of Total Marine Technologies’ ROV manufacturing facility in Western Australia. While the asset sits in Bridgefield’s name, TMT receives the positive return after paying the monthly finance costs on behalf of Bridgefield. Since then, Western Corporate Development Manager, Taylor Conway has noted that tenant satisfaction has been high and further described that “All feedback received from TMT to date has been very positive. TMT were impressed by how efficiently the installation and commissioning was completed. We’ve also received comment that they are happy with the effectiveness of the system as well.”
Tenant satisfaction isn’t the only benefit that Bridgefield Holdings and Western Corporate are counting on. ”Ultimately we’re pleased as once the system has been paid off, it will become an asset to the building and assist with resale value,” said Conway.
When Newcastle property owner, Imre Ordasi of Faremore Marine, was considering a 30kW solar system for his tenant, Just Like Fish Swim School, his analysis concluded, “In the argument of ‘for and against” PV systems have more positive points than negative. Being a grid connected system we have amended their Lease and agreed in a price reduction of their electric bill. This means a saving in their outgoings which is a win-win situation for tenant and landlord alike.”
Other commercial property landlords, like Stockland, are seeing significant yields on capital investment after selecting Todae Solar for implementing commercial solar. With one of the largest solar projects undertaken by a landlord in Australia, Stockland is expecting to reap an average 11.6 per cent year-by-year yield for over ten years from their 1.22MW solar system, spanning 6.4 hectares of roof space in Shellharbour, NSW. “That’s well above cost of capital,” said Stockland Managing Director, Mark Steinert.
With significant long-term return on investment and greater satisfaction reported by tenants, more and more property owners like Bridgefield Holdings, Faremore Marine, and Stockland are expected to get into the solar market. And when asked about which solar installer can deliver consistent quality and a good business case for leased properties? Conway says, “Todae Solar’s service has been excellent, from our very first interaction through to system installation and follow up thereafter.”
Large property owners managing large portfolios as well as single, commercial site landlords alike are now shifting the way they approach solar as an asset; creating a win-win scenario for both themselves as well as their tenants. If you are a property owner, Todae Solar can help provide you with insight on how to best structure and implement solar for the best ROI for owners and tenants alike.
If you are interested in installing commercial solar power on a tenanted site, contact us for a free feasibility study.