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ZING ENERGY

(858) 925-3336

  • Home
  • Services
    • Solar Consulting
    • Competitive Bidding
    • Lease your Rooftop
  • FAQs
    • Solar 101
    • Tax Credits for Business
    • Solar Farms
    • Tax Incentives
    • Best States for Solar
    • Solar Due Diligence
    • Finance Options
    • Energy Storage
  • Contact
  • Team
  • Articles

COMMERCIAL SOLAR ROOF LEASE

A commercial solar lease is a 3-way agreement between the property owner, tenant, and a solar company. The solar company pays 100% of the capex and then sells electricity to the building tenants. The tenant pays for electricity on a monthly basis at a discount to the utility.  There is typically a buyout option and the lease is fully assignable upon sale. The solar company is responsible for maint

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solar roof lease case study

For Real Estate Owners

80,000 SF x $0.50 SF = $40,000 Rent @ 7% cap rate = $571,428 new value

  • $0 cost to building owner
  • Fully Assignable upon sale
  • No personal guarantee to buy power
  • Option to amortize cost of new roof into the deal


For Tenants / Business Owners

$18,000 Electricity Savings @ 5x EBITDA multiple = $80,000 new value


Common Lease Types

Commercial office roof lease or solar carport lease

Industrial or warehouse roof lease

California Community Solar Program

Self storage roof lease

RV / Boat Parking Solar Carports

Farm lease for community solar


Properties that Qualify

  • Suburban office, industrial, hospitals, medical office, schools, cold storage, commercial
  • >10,000 SF building or large parking lots (solar carports)
  • Suburban office, industrial, hospitals, medical office, schools, cold storage, commercial.
  • Self-Storage, Retail, and Multi-family to offset the house meter.
  • Ideally less than 5-10 meters per building.
  • Owner does not plan to redevelop the property in the next 10 years.

Only two agreements to be executed

(1) Commercial Site Lease Agreement between building owner and solar fund

  • Building owner leases roof and/or parking areas to Solar Fund for 20+ years and collects NNN rent.
  • Fully Assignable if you sell your building.
  • Must require tenants to buy electricity produced by solar.


(2) Power Purchase Agreement (PPA) between solar fund and tenant

  • Solar fund sells power to the building, tenant(s), or utility (whoever currently holds the meters) at a discount to the utility.
  • If tenant moves out, new tenant required to purchase solar electricity.
  • Building owner not obligated to purchase the solar electricity if the building is vacant.
  • Solar system buyout option after year 5.

Benefits of a SOLAR ROOF Lease

  • New NOI @ approx 7% cap rate
  • Tenants enjoy clean electricity at a discount
  • Hedge against rising utility costs
  • Improve your DSCR to secure better financing
  • Tenants & landlords save money on their power bills
  • Resiliency from the grid
  • Meet your ESG goals

Why Now?

  • 30% Income Tax Credit
  • 40% Bonus Depreciation in 2025 & 20% beginning 2026.
  • State incentives are limited


GET A TERM SHEET FOR ROOF LEASE

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SOLAR CFO

CHAPEL HILL, NC

(858) 925-3336

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