The Economic Benefits of Solar for Commercial Real Estate Owners

Introduction

For commercial real estate (CRE) owners, solar energy is more than just an environmental statement—it’s a strategic financial decision. As property managers and developers seek ways to increase asset value, reduce operating costs, and meet sustainability targets, solar power has become a proven solution. In 2025, the economic benefits of solar for CRE owners are stronger than ever. Here’s how integrating solar can boost your bottom line and property appeal.

📉 Reduced Operating Expenses

One of the most immediate advantages of solar is the reduction in energy expenses:

• Solar installations can offset a significant portion of a building’s electricity usage

• Properties with solar experience lower utility bills and protection against rising energy rates

• Demand charge management through solar plus storage reduces costs during peak usage

Lower operating expenses directly translate to higher net operating income (NOI), a key metric for property valuation.

📈 Increased Property Value and Marketability

Adding solar enhances a property's value in several ways:

• Higher NOI increases asset valuation and resale potential

• Solar-equipped buildings attract environmentally conscious tenants seeking lower energy costs

• LEED certifications and green building credentials improve competitiveness in the market

Properties with sustainable features often command premium rents and longer tenant commitments.

🏦 Access to Financial Incentives and Tax Benefits

Commercial real estate owners can leverage substantial financial incentives:

• 30% Federal Investment Tax Credit (ITC) on solar system costs

• Accelerated depreciation benefits via MACRS (Modified Accelerated Cost Recovery System)

• Potential bonus credits for domestic content or energy community placement

These incentives significantly reduce the upfront investment and enhance ROI.

🌎 Support for ESG and Sustainability Goals

Environmental, Social, and Governance (ESG) criteria are increasingly important to investors and stakeholders:

• Solar helps meet sustainability benchmarks and carbon reduction commitments

• Improves alignment with corporate ESG goals, enhancing investor appeal

• Contributes to a positive community and environmental impact

Integrating solar strengthens an organization’s ESG profile, which is becoming a critical factor in asset management and investment strategies.

🔌 Energy Independence and Resilience

Solar, especially when paired with battery storage, provides:

• Greater control over energy costs and usage

• Resilience against grid outages and energy price volatility

• Opportunities to participate in demand response programs and grid services

This energy independence adds operational security and reliability to property assets.

🤝 How Surge Helps Commercial Real Estate Owners

Surge offers tailored solutions for CRE portfolios:

• Site-specific solar assessments and financial modeling

• System designs optimized for rooftops, parking structures, or ground-mounted installations

• Assistance in navigating incentives, tax benefits, and financing options

• Ongoing performance monitoring and maintenance

With Surge, CRE owners can maximize the financial, operational, and environmental benefits of solar energy.

📝 TLDR Summary

• Solar reduces operating expenses, boosting net operating income (NOI)

• Properties with solar see increased value, marketability, and tenant appeal

• Financial incentives and tax benefits improve ROI on solar investments

• Solar supports ESG goals, enhancing investor confidence and sustainability profiles

• Surge delivers customized, turnkey solar solutions for commercial real estate assets