PACE Equity Finances Renewable Improvements:
Commercial property owners, managers and developers continually look for ways to increase property values, reduce operating expenses AND improve IRR. By investing in a renewable energy solar photovoltaic system, you can achieve these goals AND make a double-digit return on your investment while also improving energy efficiency, conserving water, reducing carbon emissions, and improving resiliency & preparedness. It is a WIN-WIN-WIN!
Here’s how:
The average commercial building spends $2.10 per square foot on electric costs every year. By installing a solar photovoltaic system that can offset the entire electric need, a 50,000 square foot building would save as much as $105,000 per year.
A solar system can offset all or part of a facility’s electric use, driving down operating expenses which raises NOI. In our example, a 5% capitalization rate on a 50,000 square foot building could add $1 million to the value of the property. In addition, utilizing the government incentives the owner can benefit from the Investment Tax Credit and the MACRS credit. Using a standard 26% tax credit in year one and a five-year depreciation of the system installation (MACRS) with no upfront costs, a building owner can realize a significant tax benefit at no expense as well as an improved pretax cashflow with reduced electrical costs.
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With the increase in NOI, the ITC tax credit and MACRS tax deduction benefit from accelerated depreciation, a solar system can be a benefit – really! Today, the installation of a solar system offers outstanding economics while also creating a path to zero carbon emissions for your building or business. And PACE Equity can help you finance it.
How can we pay for solar investments?
PACE Equity Fast Track™ Funding can be used to cover 100% of the costs of the solar system (and an emergency backup system if you include battery storage) with non-recourse, long-term (20-30 years), fixed rates, low-cost, ‘pre-pay anytime’ financing… PLUS with PACE Equity financing you get to keep the tax credits as well as the MACRS depreciation.
There has never been a better time to take advantage of PACE Equity financing and invest in solar for your commercial real estate portfolio:
- lowest ever cost of solar
- high available tax credits and depreciation
- low rates for PACE Equity financing
- highest cost of electricity (and rising).
Learn more about C-PACE financing from PACE Equity.
Ask your local Managing Director more about solar improvements. Let’s get started today to lower your expenses and increase your NOI.