The “who” comes down to who can use it and who can provide it. It’s basically the old adage – supply and demand.
Looking at the “need” side, solar panels are not a must – or at least not yet. But for commercial property owners, they can be a great way to “lease” an unused asset to increase NOI and reduce expenses. Ideal properties target those with 30,000+ square feet of usable roof space that is relatively flat. Similarly for owners and management companies that have ample parking, solar canopies are another way to tap into another revenue stream for this unused asset.
As for who can develop and implement such solar projects, that’s where the research comes into play as there are many solar development firms seeking space (including rooftops) within New Jersey. One is Community Solar, which sends all generated electricity to the grid and energy benefits are reserved for “subscribers” including both households and businesses. While this program is competitive, it is not guaranteed that a project will be accepted due to capacity constraints.
Then there is Nessel Energy, which offers a combination of roof lease revenue and lower electricity rates from the rooftop solar system. This increases overall value to both the property and tenants by making adjustments across lease and energy portions to fit the needs of an individual owner. Because solar energy is consumed on-site, these projects will be accepted by the state for incentives. Often there is a concern of project funding. Nessel brings its own financing to the project and works with some of the largest and most stable financiers to provide construction and long-term financing for local solar projects.
In three words, it’s the Nessel Energy Rooftop Revenue ProgramSM designed with property owners in mind – creating a new revenue stream by leasing unused rooftop space, while also lowering operating expenses with on-site solar energy production. It’s like adding another floor to the building. A combination of these attractive lease rates and lower electricity costs, owners are able to increase NOI plus add tenant value with cleaner energy and reduced operational expenses.
New Jersey is leading the way nationally for solar projects so the short answer is the Garden State – one no longer just flourishing with fresh Jersey tomatoes and home to the “Blueberry Capital of the World.” New Jersey’s Clean Energy Program serves the entire state and works with serves ACE, JCPL, PSE&G and O&R.
Often it is said, timing is of the essence. For solar projects, the time is truly now. In New Jersey, the state has a goal to supply 100% carbon-neutral electricity by 2050, including 17 gigawatts of solar energy by 2035. These targets are supported by a rich incentive program that, combined with the federal investment tax credit, makes now the best time to adopt solar energy. This is a unique opportunity for property owners to capitalize on the Federal solar investment tax credit and a high value incentive program, currently called the Transition Renewable Energy Credit (TREC) program in New Jersey. Nessel Energy is able to leverage these incentives to offer attractive rates.
Simply put… Why not? It comes down to finding the right partner. Nessel Development, the parent company of Nessel Energy, is a commercial real estate investment firm with over 20 years of real estate experience across commercial, multifamily, and industrial properties. The company’s portfolio value exceeds over a quarter billion dollars and 8 megawatts (MW) of solar under its belt. Moreover, Nessel firmly embraces corporate social responsibility and believes in sharing the financial success of its efforts with the community. It holds a strong commitment to environmental, social and governance (ESG) and shares its pledge with helping other business achieve their ESG goals.
Sold! Now it’s time to get to work. The Nessel Energy sales and development team will work with property owners and managers throughout the process, ensuring a seamless experience. The first step is to analyze the solar energy suitability at the property. This requires access to the roof and electrical equipment for analysis, and a review of the 12 months prior electric bills. It is important to see the site firsthand and understand if any upgrades (i.e. tenant improvements) are needed. Then a proposal is presented with various solar energy options.
If all is in order, the next step is to sign a typical site lease agreement and move in to the actual development and construction phase to include securing permits, notifying the utility and preparing for installation – all with Nessel Energy project managers on hand before, during and after. Yes, after, the team provides ongoing maintenance with regular system and roof inspections to ensure everything is running properly.
Are you ready to increase NOI and lower electricity expenses? Contact us to learn more.
A combination of Federal and state-level incentives is creating a unique opportunity to earn high lease rates for solar on your property. Learn how Nessel Energy’s Rooftop Revenue Program℠ can benefit your organization.
Nessel Energy provides sustainable energy solutions for real estate owners and developers through our unique Rooftop Revenue Program℠. We leverage over 20 years of real estate experience across commercial, multifamily, and industrial properties to provide unparalleled energy advising and services.
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