If you own a business that leases property to others it makes a lot of sense to invest in a solar plant for your commercial property.
Think of this as owning your own little electricity company and your cost of goods is simply the finance cost on the equipment.
Let’s talk about how an investment in solar for your commercial property might work…. feel free to call or email.
(This is an actual email to one of my clients).
It looks like we proposed a 100 kW system.. Current prices, no batteries, would be about $300k and it should offset about $2500 a month in electricity charges.
Let’s talk about you as the investor (keeping in mind that I have an investor that will fund this and you will see why).
As an investor.. on $300k, you would receive $150,000 in tax benefits for this property.
– 30% ITC
– 10% Domestic Content
– 10% Energy Community tax credit
The cost of capital is the only other major expense…. and I calculated this: The monthly payment for an investment of $150,000 at a 4% interest rate for 25 years would be $791.
So, you would ‘sell’ electricity to your tenants at some rate and you make the spread… if their bills combined currently total $2500 a month and are going up, you could probably make them happy at $2200 per month with a guaranteed escalation of 1.99% or something similar.
Therefore you buy at $791 and sell at $2200 and that’s extra return to you.
This is a very good investment imho.