The 5-building, Mission Valley business park was not taking advantage of its large rooftop area. As utility rates climb in San Diego at an average rate of 4% per year, the business park’s tenants had no relief from the rising energy costs. The complex owner and namesake, H.G. Fenton, wanted to use on-site renewable energy production to lower the location’s carbon footprint as well as financially benefit both themselves and each individual business in the park.
HES Renewables was enlisted to design and install a 654-kilowatt commercial rooftop solar system that would produce clean electricity. Silfab Solar panels were selected for the project due to their strong performance as well as excellent value. Ivy Energy software was implemented to allow simple and accurate billing sharing. This combination allows all the financial benefits of solar to be spread across both the property owner (and solar system purchaser) as well as among the tenants using the electricity.
Now each tenant participates in the energy savings with an automatic 10% discount, compared to the utility rate at the time, on electricity that is produced on-site. The system is expected to offset all energy use of the tenants.
The system that saves these companies money also creates a new revenue stream for the business property owners. The estimated 1,038,014 kWh of electricity produced each year translates into an impressive, estimated 8.4 million dollars in net operating income over the first 25 years of production.
The HES Renewables team also ensured that the initial cost of building the solar system would be dramatically reduced by maximizing the tax credit and depreciation options for solar such as the Investment Tax Credit (ITC), the Federal Bonus Depreciation, and the State MACRS Depreciation incentives.
We are a San Diego-based solar energy production and energy storage installation company. We have been an energy innovator since 2001 and can handle projects from solar-only arrays to micro-grid solar and storage systems with on-site EV charging stations.
If you’re looking into the benefits of on-site energy production, energy storage, or EV Charging capability, we’d love to speak with you. We’ll show you how to lower and stabilize energy costs, receive the maximum incentives, open new revenue streams, and gain control over one of the largest expenses of your business or commercial property.
Click here to be contacted by an HES Renewables representative, or simply dial us at 866-HES-RNEW (866-437-7639).