I'm a commercial landlord - should I consider solar installation for my properties?

According to the Property Industry Alliance, over half of the UK’s commercial property is rented by occupiers.

Installation of solar on a rented building comes with some risks to tenants and so often isn’t adopted. But what if as a commercial landlord you could take away that risk, and gain a revenue at the same time?

Why solar?

Many businesses are striving to improve their green credentials and become more sustainable. In using power generated from a renewable source, a business can greatly reduce their carbon footprint and as such, become more attractive to customers. However, as a tenant the risk of installing on a building owned by another may put them off – if it’s even permitted.

By installing commercial solar onto your property, you can provide your tenants with energy security and green credentials. The array would be owned by you, with any power generated being metered and sold back to your tenant at a set rate.

Benefits for landlords and tenants

Installing solar PV and agreeing a power purchase agreement (PPA) is a win-win scenario. As a commercial landlord, you benefit from a quicker return on your investment whilst your tenant benefits from cheaper, guaranteed power.

Likewise, if you are currently developing a site or have vacant premises, solar is a great bonus to prospective tenants with many companies striving to be green – you’ve already ticked a box for them.