June 2023

Green Is The New Gold: Why Commercial Landlord's Are Adding Solar To Boost Investment Property Returns

Written by Kerry Mullany

Are you a forward-thinking landlord of a commercial property seeking to capitalise on the growing demand for sustainable properties?

In an era where environmental sustainability is becoming an increasing global concern, businesses are recognising that "green" could very well be the new gold. With renewables on the rise, 46 per cent of Australian corporates have recorded making the transition. The transition to renewable energy sources, such as wind, solar, and hydropower, is not only benefiting the planet but also proving to be a lucrative venture for companies across various industries. 

James, our Head of Commercial Solar says “As Australia makes the transition to renewables, we're seeing businesses start to incorporate it into their strategies. Whether it be through upgrading locations to include solar and batteries or updating their corporate social responsibility, businesses can capitalise on going green.”

Many commercial leases include outgoings such as electricity. Solar energy can help offset a significant portion of the property's energy consumption, leading to long-term savings on utility bills. Incorporating electricity costs into the tenancy agreement is a great way to nullify the initial cost of the system too. 

Tenants will be happy to avoid rising energy costs, and cross paying bills off their life admin list, and over time you will have an energy independent property that could make you money.

For commercial properties with high energy needs, a solar systems over 70kW opens the door to the Smart Power Agreement.

If your commercial tenants energy bills are included in rent (which they can be for some commercial leases) then our Smart Power Agreement might interest you. 

How it works: Buy the energy, not the system.

We tailor a solution based on the properties energy consumption and roof size, with no cost to you. We own, operate and maintain the system, giving you access to a low solar electricity rate for what the system produces.

Why is this so great?

  • Coal powered retail energy prices are exponentially extortionate, so fixing a clean energy rate is probably quite appealing - especially in the current energy climate
  • If your long term plans for owning the property are uncertain, but you need a solution to cheaper energy bills now, then this arrangement is ideal. 
  • Furthermore, if your tenants do pay the bills and are eager to switch to a cleaner supply of energy, with your permission, they can - without costing you a dollar!

Sounds like a win for you, your tenants and the planet! 

Installing solar on a commercial property is a long-term investment that can continue to provide benefits over many years, including ongoing cost savings and potential resale value.

With long lifespans, typically around 20 to 25 years, installing panels and batteries now can add years of value to your property. With the Smart Care package, the long-lasting warranties and customer support, offer assurance that the quality of the investment will add value to the property.

A commercial property with solar panels can serve as a marketing tool. Landlords can promote their environmentally friendly practices and attract businesses that align with their sustainability goals. This can differentiate the property from competitors and generate positive publicity for both the landlord and the tenanted company. 

Solar-powered properties have a unique selling point that can differentiate the property from competitors in the rental market, and make the property a more desirable asset. Especially for businesses that consume a lot of energy or are looking to promote themselves as eco-conscious.

Many businesses and tenants are increasingly prioritising sustainability and greener forms of energy, as well as looking for ways to avoid the burden of rising energy costs.

Furthermore, with a solar system on the roof you can choose to include bills within the tenant's rent. Whether you own the system yourself or enter a Smart Power Agreement, the appeal of fixed energy prices during an energy crisis can attract more tenants. By increasing the pool of applicants, you can fill the property faster, cutting loses of a vacant property, and gain more choice when selecting the ideal business tenant for your property.

Solar and batteries as a combined system can provide energy independence. During power outages or grid failures, solar-powered commercial properties can continue to operate critical systems such as lighting, refrigeration, heating and other machinery vital for running the business. This consistency can provide peace of mind to both landlords and the tenants.

Landlords can take advantage of federal or local tax credits, rebates, or grants that can help offset the upfront costs of the solar installation, making it a more financially viable option.

If you have long-term plans to continue leasing the investment property, or even using yourself commercially one day, taking advantage of government incentives whilst you can is a wise financial decision. 

With solar power expected to become a standard feature across new and established properties, there will be less incentives from the government to choose renewables in the future.


States currently offering incentives: (As of May 2023)

VIC: Solar Battery Rebate

NT: Solar PV & Battery Grants

TAS: Energy Saver Loan Scheme

NATIONWIDE Small Business Energy Incentive


Green is indeed the new gold

Green is indeed the new gold

The shift towards renewable energy is not just a trend; it's a strategic move that offers a multitude of advantages to businesses. From cost savings and energy independence to enhanced brand reputation and government rebates, the benefits of adopting renewable energy sources are undeniable. 

As the world continues to prioritise sustainability, businesses that capitalise on renewable energy are not only contributing to a greener planet but also positioning themselves for long-term success in an evolving global market.

Green is indeed the new gold, and businesses that embrace this paradigm shift are reaping the rewards.

Green is indeed the new gold
Important: Consult an Expert

Important: Consult an Expert

Luckily for you, our Commercial Engineers streamline the process and take care of the complexities, simplifying your savings journey. 

Important: Consult an Expert

We're here to help

No question is silly, we've heard them all!

Own a Residential Property?

The benefits continue for landlords of non-commercial real estate: 

Maximising Returns: The Benefits of Solar and Battery Systems for Residential Landlords

20,000+ happy customers across Australia.


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