How Solar Power Can Increase Your Commercial Property Value?

Commercial property owners are always looking for ways to increase the value of their investments. One way that is gaining in popularity is through the installation of solar power systems. While there are initial costs associated with installing a solar power system, over time these systems can provide a significant return on investment. In this article, we will explore some of how a solar power system can increase the value of your commercial property.

Although it’s easy to list the many benefits of commercial solar energy for businesses, pinpointing their value can be more complicated. The impact on property value is one such example. Although high-quality solar panels for commercial buildings make the properties more valuable than those powered by fossil fuels, it can be tough to calculate exactly how much extra value they add. If your organization is looking to commercial solar panels to increase property value, this article may be of help.

First, let’s look at solar installations for regular homes, not businesses. One study found that homes with solar panels sell for 4.1% more than similar homes without them. Some reports say that businesses with solar power increase in value too, but we need more studies to be sure. The main idea is that adding solar power could make a property worth more money. Let’s try and answer a few common questions to get closer to our main objective.

Is the organization that is installing solar power the owner of the building or property for said project?

The adopting organization reaps the most benefits when it owns both the site and equipment being installed. With ownership comes access to any possible tax incentives, as well as reduced energy expenses and potential for claiming renewable energy credits (promoting the solar system’s green attributes in turn). Lastly, commercial property value usually increases.

What are the benefits of commercial solar for a leased property?

Even though renting their commercial facilities, many organizations can still benefit. Most of the property-related costs (e.g., insurance, property tax, utilities) are paid for by the lessee (or passed on to them in the form of higher rent). By installing commercial solar panels, they could reduce the energy expenses shouldered by the lessee—and enjoy public perception boosts that come with having solar power visible at their site.

Why should property owners pay to install solar panels for their tenants?

Here are few advantages that renters can bring up when trying to convince a landlord to install commercial solar:

  • Reduced energy bills – Solar panels can provide significant savings on electric bills, especially in states with high electricity rates.
  • Solar credits and incentives – Many utilities offer financial incentives for installing solar panel systems, which can help offset the upfront cost of installation.
  • Environmental impact – Reducing your carbon footprint is important to many people today, and using renewable energy sources like solar power helps do that.
  • Increased property value – Solar installations have been shown to increase the resale value of properties, so it’s something that landlords should keep in mind as well.

Can solar panels increase your home’s resale value, even if indirectly?

A less clear but still vital factor is that having solar panels sends a message of being eco-conscious, socially responsible and forward-thinking. Aside from enhancing your public image, commercial solar systems provide the advantages and cost savings that come with going green, as well as modernizing a building’s exterior. In most cases, properties that look nicer are worth more money.

Co-relations between Property Value and Installing Solar Energy in Commercial Premises

  1. Solar energy installation has a positive effect on commercial property values.
  2. The increase in value is greatest for small businesses and decreases as business size increases.
  3. The value of the property also affects the amount of the increase.
  4. Newer properties see a greater increase than older properties.
  5. The location of the property also plays a role, with properties in sunnier locations seeing a greater increase than those in shadier locations.
  6. Solar energy installations have a positive effect on both lease rates and occupancy rates for commercial properties.
  7. The installation of solar energy systems can help to attract and retain tenants, as well as improve the marketability of the property.
  8. Solar energy installations can also help to reduce operating costs for commercial properties, resulting in increased profitability.
  9. Solar energy is a sound investment for commercial property owners, with returns typically exceeding the cost of installation within 5-10 years.
  10. Commercial property owners who install solar energy systems often see an immediate increase in their property’s value.

See also: How Much Do Solar Panels Increase Home Value?


In conclusion, there are plenty of reasons why commercial property owners should consider installing solar energy systems. Not only can they save money on energy costs, but they can also increase the value of their property and attract new tenants. Additionally, the installation of solar energy systems has a positive effect on the environment and sends a message of social responsibility to the public. For all these reasons, it is a wise investment for businesses of any size.

Making the switch to solar power can be intimidating at first, but with careful research and understanding of the benefits, it’s one of the most rewarding investments that business owners can make. From reducing energy costs to increasing property value, it’s a great way to go green and reap the rewards.  It’s no wonder why more and more business owners are making the switch to solar power!


What are the advantages of installing solar panels?

The advantages include reduced energy bills, financial incentives and credits, environmental impact, increased property value, and a positive public image.

Does installing solar panels increase commercial property values?

Yes! Installing solar panels has been shown to directly increase the value of commercial properties, as well as indirectly increase value through decreased costs and improved public image.

What factors affect the amount of value added to a property by installing solar panels?

Factors that affect the amount of value added to a property include size of the business, age and location of the property, lease rates and occupancy, and operating costs.

Is solar energy a sound investment?

Yes! Solar energy is typically an excellent long-term investment with returns that can exceed the cost of installation within 5-10 years. Additionally, many governments offer financial incentives and credits to business owners who install solar panels, making it even more profitable.

How long does it take for solar energy to pay for itself?

The length of time that it takes for solar energy to pay for itself depends on factors such as the cost of installation, size of the system, and amount of electricity generated. On average, however, solar energy systems typically pay for themselves within 5-10 years.

What should businesses consider when installing solar panels?

Businesses should carefully research and understand the financial incentives, credits, grants, and other benefits offered by their local government. Additionally, they should factor in the cost of installation, size of the system, amount of electricity generated, and estimated energy savings over time.  Finally, they should consult a certified solar installation specialist for guidance and support.

Do solar panels require a lot of maintenance?

No. Solar panel systems are designed to be low-maintenance and typically only require inspections every five years or so. Additionally, depending on the type of system installed, many components come with warranties that last up to 25 years or more!

Leave a Comment