5 Reasons Retail Shopping Centers Should Invest In Solar
Investing in solar photovoltaic systems can be a wise investment for a retail shopping center owner. In many states and situations, installing solar power in a mall or other retail shopping centers can provide a serious competitive advantage over competitors that do not invest in solar.
Gain a competitive edge:
As utility electricity rate hikes continue to drive monthly electricity bills higher and higher, building owners can ensure a competitive edge by installing solar power in a mall or on their retail shopping center rooftops. Throughout 15 years, the retail shopping center owner that installs solar would be paying the same amount for electricity each year. But their competitor, who doesn’t have solar, could see their electricity costs double or triple in those same 15 years. “Going Green” with solar power also generates positive PR; providing great publicity for being a company dedicated to sustainability.
Protect from electricity rate hikes and even earn a profit:
Installing solar power in a mall or shopping center rooftop protects against electricity rate hikes for 25 years. This holds true whether opting for a direct purchase of solar photovoltaic systems or entering into a Power Purchase Agreement with no up-front costs. Typical electricity rates may increase as high as 6% per year. A solar power panel is guaranteed to produce free electricity for 25 years, but many solar panels last 30-40 years. To see why free electricity is important, build an excel spreadsheet that multiplies your current electricity bill by 6% each year for the next 25 years. At a 6% increase per year, a $1,000 monthly electric bill will increase to more than $3,820 per month in 25 years. Consider that you can also sell your clean green electricity for a profit. Your tenants would be happy to buy electricity from you (or a third party in the PPA option) instead of the utility company if you give them a discount.
Gain Modified Accelerated Cost Recovery System (MACRS) depreciation and tax write-offs:
Installing solar power on retail shopping center rooftops could also provide MACRS depreciation and huge tax write-offs. Take advantage of a 30% federal tax credit and any state tax credit that might be available. MACRS depreciation allows shopping mall owners to depreciate a large percentage of the system cost in the first year of operation.
Protect against power outages:
Installing solar power in a mall or shopping center rooftop can also provide protection against power outages when the regular grid has an outage. If so desired in areas of greatest need and return, electricity can be stored in batteries, large capacitors, flywheels and other types of devices that store energy until it is needed during an emergency or when the sun goes down.
Reduce your carbon footprint:
In addition to saving money, creating jobs and creating economic development, the best thing about solar power in a mall is that it produces zero air pollution. While our world is faced with the growing problem of global warming, installing solar power is one of the best ways for retail shopping center owners to reduce their carbon footprint and in the process save money on future retail shopping center electric bills.
KMB is a leading consulting firm providing solar photovoltaic systems design & structural engineering services. Contact us today to find out how to put energy into your projects!