Have you noticed that most shopping centers don’t have solar panels?
Less than 10% of US shopping centers have solar in any form. For those that do, the panel installation is typically driven by a specific, progressive business that resides in the center (such as Target, Costco or Whole Foods), and provides power just to that business.
The problem is that shopping center owners don’t have a financial incentive to invest in solar. Over time, solar can be a viable way to decrease energy costs. However, most shopping center owners are not tenants of the center, so they don’t pay the electricity bill.
If you own a shopping center, why would you invest over $1 Million to install solar when you are not the one who receives the cost savings?
From a local energy generation standpoint, installing solar on the flat, open rooftops at shopping centers is one of the simplest ways to rapidly speed the adoption of clean energy generation in local communities. However, under the current incentive structure, shopping center owners lack a financial reason to invest in solar.
Currently, a shopping center installing solar at scale requires one of the following:
Neither approach makes financial sense.
The simplest way to speed the adoption of solar at shopping centers is to have a third party manage the solar program and provide financial value to everyone involved.
This model is possible if a third party funds and manages the program. When run correctly, this type of program is financially beneficial to the property owner, to property tenants and to the manager of the programs.
Clean energy solutions scale when they make financial sense. With the right approach, shopping center roofs will become a reliable source of locally generated, clean energy and will increase the financial return for both shopping center owners and their tenants.