The age of solar power for Industrial buildings is here.
As a business (or property) owner, the current power crisis in South Africa has a negative impact. Dreams of success begin to fade and one starts playing out negative scenarios around one’s cash flow, lost working hours, lost contracts, a dwindling customer base, and the uncertain future of one’s business.
Your rooftop is an asset waiting to help you. A well-thought-out solar power system can provide a win-win situation for your business and/or your property.
Positive aspects of your solar power investment
Fundamentally it can increase the value of your property and make it more attractive to tenants and future buyers. As the landlord or business operating out of the property, you will breathe easier knowing that you are following in the footsteps of hundreds of South African property owners and landlords taking environmental and energy matters into their own hands.
Costs of your solar power unit
Capital outlay may not be necessary as you will be reallocating existing expenses to pay for a new asset that works for you. In effect, the savings you make from generating your own electricity will pay for the installation – until you own the system outright. Not only will you be able to survive future load shedding, but you will also be largely immune to Eskom’s escalating tariffs. Not to mention the tax break you will be getting from SARS for doing your bit for the environment.
Businesses/ Tenants can be connected to the solar power system, and their usage monitored. You’ll be able to charge for usage, giving energy security to your tenants and even sharing the savings with them when your asset has been paid off. They will enjoy lower electricity costs and greater certainty of running a successful business. In turn, they will likely commit to occupying space with you for a more extended period, reducing your vacancy rate. A renewable energy system will assure them of your commitment to shielding them from future Eskom tariff hikes and unpredictable load shedding. New tenants will immediately find your property attractive for their business.
Many new developments incorporate solar power installations.
In a few years, you will own the system outright, generating electricity for free. And when it comes to selling your asset, you will be conspicuous, having demonstrated your commitment to environmental sustainability and protection. By then, most prospective buyers will be looking for an asset with a proven renewable energy system to invest in. Property owners not augmenting power with renewable energy will likely be passed over. Owning this asset could generate an income for years – almost like a retirement fund.
Identifying the right company to help you maximise your roof space requires some due diligence. This will pay off when you find the right combination of energy partner, funding expert and solar specialist. There are a number of ways to structure your entry into renewable energy:
- upfront payment and ownership
- debt funding
- no upfront payments and entering a power purchasing agreement using Eskom savings over time until the system is paid for.
A solar solution is the start of a long term relationship with industry experts, appropriate funding partners and the environment. The key lies in finding an expert who can take the problem and administrative burden off your shoulders. Additionally, this company must provide the right funding model and solar system to generate and extract the maximum amount of energy. Furthermore, you will attach a real and often surprising value to the roof space of your property. Similarly, you will enjoy an extra yield that is so difficult to obtain in today’s market.
Contact Epping Property who will be able to put you in direct contact with the best solar energy experts!