Hosting such unique tenants as The Pacific College of Health and Science San Diego Massage & Acupuncture School, building owner H.G. Fenton wanted to maximize the Mission Valley property’s Net Operating Income as well as provide the option for the school, and other tenants, to operate on clean, renewable energy.
In another project through their long-standing partnership, the San Diego real estate company contracted HES Renewables to design and install a top-quality commercial solar system across the property’s two rooftops. HES Renewables’ PV solar designers specified 500-watt Silfab Solar panels as the optimal choice for a robust, reliable solar system. Using 386 solar panels over the school building and 292 panels across the second building, the system’s total energy output is estimated at 493,758 kilowatt hours annually. To arrange the solar to benefit both the property owners as well as the tenants, Ivy Energy tenant billing software was incorporated into the solar system design.
The 339-kilowatt solar system creates an additional revenue stream for the property that is anticipated to deliver a total Net Operating Income of an impressive $3,900,000 over the first 25 years of energy production.
The green energy is sold to the tenants at a pre-set discounted rate relative to the current utility rates. This provides instant operational cost savings to each tenant that participates in the available solar energy tenant program, and creates a cash flow for the building owner that turns profitable in the fourth year. The system will go on to create an estimated 39% Internal Rate of Return on the investment.
The solar system’s cost was lowered through various tax credits and incentives available, including the Investment Tax Credit, as well as federal and state depreciation programs. As additional peace of mind, the system’s production and longevity is not a concern thanks to the availability of an Omnidian extended warranty that covers the dual-rooftop solar system.
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).