“...one acre of rooftop sp ace
can...reduce the overall load
of a large office building by
10% to 15%.”
As the world”s economy suffers
through what feels like a long,
cold, lonely winter, landowners
are turning to solar power to generate
revenue and offset costs. Technology
and financing mechanisms make solar
projects particularly attractive when
other planned projects have stalled.
Solar projects can (i) be installed at
improved properties and on vacant
land, (ii) utilize tax credits to offset
infrastructure installation costs, and (iii)
make real estate developments more
marketable and sustainable. Landowners need to understand certain basic
principles to properly evaluate which
properties realistically can take advantage of these benefits.
Land of Opportunity
Solar panels can be installed in areas
of existing developments that can
support the heavy panels or on vacant
land. Owners of existing developments
of all asset classes, from shopping center
byElliotD.HindsandDouglasA.Praw
developers to residential developers, are
implementing solar panels primarily on
rooftops and in unused parking areas
with great success — as little as one acre
of rooftop space can generate enough
energy to reduce the overall load of a
large office building by 10% to 15%. At
the Class A MGM Tower in Los Angeles,
for example, a solar photovoltaic system
recently installed on unused portions
of its adjacent parking structure is
projected to offset more than 12% of
the building’s annual energy use.
There currently is no shortage of
vacant land owned by master-planned
community landowners and residential
builders. Much of this land is in the
“sunbelt,” extending from California to
Texas, where concentration of solar
radiation is highest. Ten acres of vacant
land can house approximately 7,400
tilting photovoltaic panels, which
can power 750 to 1,000 average-sized homes. Unlike many other
generation sources, solar panels can
be installed on portions of a planned
development without abandoning the
originally contemplated residential or
commercial development. In addition
to the revenue created by a solar
project, landowners might have a more
attractive development that can be
touted as “sustainable” or reducing its
residents’ carbon footprint.
Initial Considerations
Vacant space is not the only requirement for solar projects. A site’s viability
depends on its size, proximity to large
users and interconnection facilities, and
various other factors. For landowners
with little energy experience, there is
no substitute for an energy consultant
with solar industry expertise to conduct
a feasibility study. Nonetheless, answering the following threshold questions
can provide preliminary indications
of which solar projects may be suitable
for landowners and their sites:
