Solar for Multi-Tenant Buildings: Benefits, Challenges & Solutions

Introduction

Whether it’s a retail strip center, an office park, or a multifamily housing complex, multi-tenant buildings represent a massive untapped opportunity for solar energy. But deploying solar in these settings is more complex than on a single-occupant building. With the right approach, however, landlords and tenants alike can benefit from clean energy, lower utility bills, and improved property value.

Why Solar Is a Smart Move for Multi-Tenant Properties

• Reduces operational costs and common area electric bills

• Increases property value and marketability

• Helps tenants meet sustainability and ESG goals

• Qualifies for federal, state, and local incentives

• Positions building owners as climate-forward leaders

In competitive leasing markets, solar can be a unique value proposition.

Key Challenges in Multi-Tenant Solar Installations

Deploying solar in buildings with multiple utility accounts or meters involves:

• Determining how to allocate energy across tenants

• Navigating utility billing structures and net metering rules

• Handling split incentives (landlord pays, tenant saves)

• Ensuring equitable benefit distribution and participation

These issues require thoughtful design and often creative solutions.

Billing, Incentive Allocation, and Ownership Structures

Options include:

• Virtual net metering (VNM): Credits solar production across multiple meters

• Submetering and bill credits: Using software to track usage and credit tenants

• Power purchase agreements (PPAs): Third parties own the system and sell energy

• Tenant buy-in programs: Enable tenants to own a share of the system

Custom structuring is often needed based on the utility, tenant profile, and building layout.

Community Solar vs. Behind-the-Meter Solutions

If onsite solar isn’t feasible or is too complex:

• Community solar offers a shared offsite solution with bill credits

• Ideal for tenants in apartments, office suites, or retail stalls

• Can be designed for opt-in or opt-out participation

Surge helps property owners determine whether on-site, off-site, or hybrid solutions best fit their needs.

Policy Trends Supporting Multi-Tenant Solar

States like California, Colorado, New York, and Minnesota have pioneered programs like:

• Virtual net metering and community solar access

• Low-income and affordable housing carve-outs

• Utility-sponsored pilot programs for multi-tenant solar

Incentives are evolving to support equity and inclusion in the solar transition.

How Surge Supports Property Owners and Tenants

We provide:

• Feasibility analysis across metered and common spaces

• Custom solar designs for maximum tenant benefit

• Legal and billing structure recommendations

• Software integration for energy tracking and bill crediting

• Support for community solar subscriptions if applicable

We specialize in removing barriers and maximizing shared value.

TL;DR Summary

• Multi-tenant buildings are ideal candidates for solar, but require custom solutions.

• Tools like virtual net metering and community solar make equitable participation possible.

• Surge handles the complexity so both property owners and tenants benefit from solar energy.