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Benefits to commercial landlords
1. Increase rental yield via premium rent per m²
Commercial tenants demand lower operating costs and are more environmentally conscious. By reducing tenant energy expenses, landlords can justify higher rent per square metre, translating to improved yield and higher asset value. As electricity costs continue to climb, solar becomes a compelling differentiator.
2. Green Star accreditation & sustainability leadership
Green Star-certified buildings not only score higher on sustainability assessments but also attract quality long-term tenants, investors, and premiums. Solar installations contribute directly to Green Star credits, showcasing your site’s commitment to energy efficiency, carbon reduction, and environmental stewardship. A significant number of Developers and Landlords are now putting this into practice retrofitting existing buildings and incorporating solar into New Builds. For example, to help achieve a 5-Star Green Star rating a commercial building with 350,000 kWh annual demand might install a 100–150 kW solar system providing 150,000 kWh/year (40% offset).
3. Lower tenant energy bills - A clear win-win
Commercial solar helps tenants by:
- Reducing grid-sourced energy costs
- Offering price predictability amid volatile tariffs
- Improving tenant retention and satisfaction
ZEN Energy’s guide explains that building owners with daytime-heavy loads gain most, as solar offsets peak consumption — stabilising costs and strengthening tenant relationships.
4. Help tenants meet carbon reduction targets
More businesses are pledging net-zero and sustainability commitments. By leasing from solar-enabled buildings, tenants can more easily measure and reduce their operational carbon footprint. Solar ownership lets you play a direct role in their ESG achievements, and make your property more attractive to eco-conscious occupiers.
5. A strategic investment with strong returns
Solar isn't simply a green gesture, it's a strategic lever to:
- Stabilise or reduce energy budgets
- Increase property asset value
- Enhance market positioning through sustainability
With smart financing (e.g., lease structures or PPA models), landlords can achieve positive cash flow and return on investment while keeping capex low.
Typical ROI in the NZ market
Return on Investment (ROI) and Payback Periods
- System size: 100 kW – 500 kW common for commercial roofs
- Payback period: 4-7 years (depending on usage & export assumptions)
- IRR (Internal Rate of Return): Often between 15–25%
- Savings: Typically 20–40% reduction in electricity costs annually
- System lifespan: 25–30 years for panels; 10–15 for inverters
Final Takeaway
For landlords, commercial solar offers a multi-dimensional payoff:
- Financial upside through higher rent and asset appreciation
- Tenant upside via lower utility costs and ESG alignment
- Market advantage with sustainability credentials and leasing appeal
If you're looking to unlock better returns and tenant retention, now is the moment to explore solar. With current technology and financing models, it’s a win for both landlord and tenant, and a meaningful step toward a cleaner, more resilient built environment.
Talk to Mike Worsp from ZEN today for a free feasibility study on your building/s.
0211973602
