Net metering is a billing system that allows solar panel owners to receive credit for the excess energy they produce and feed back into the grid. This means that if an apartment building produces more energy than it uses, the excess energy can be sold back to the utility company for credit on the building’s electricity bill.

Solar power is becoming an increasingly popular option for apartments due to its numerous advantages. One of the main benefits is cost savings for both tenants and landlords. By using solar energy, tenants can lower their electricity bills and save money each month. Additionally, landlords can potentially generate income by producing excess energy and selling it back to the grid. This can also help offset the initial cost of installing solar panels.

Another advantage is increased property value for landlords and property owners. Properties with solar panels are seen as more sustainable and environmentally friendly, which can make them more attractive to potential buyers or tenants.

Solar power is a popular alternative energy source that is becoming increasingly popular in apartment complexes. There are several advantages of using solar power for apartments and one of the main benefits is that tenants gain access to clean and affordable energy. This not only helps to reduce their utility bills but also has a positive impact on the environment. Additionally, solar power can enhance the comfort of apartment residents by improving energy efficiency, which can help to regulate temperatures and reduce noise pollution. The property owners and tenants alike.

It is important to explore financing options for solar installations, such as lease agreements and power purchase agreements (PPAs). These agreements allow apartment building owners to benefit from solar power without having to pay the upfront costs of installation. Additionally, there are incentives and tax credits available for apartment solar projects, which can further reduce costs and make solar power more financially feasible for building owners. By carefully considering financing and ownership models, apartment buildings can successfully implement solar power and reap the benefits of clean energy.

• Tenant has own meter. If your tenants pay for electricity directly to the utility company, then a separate agreement or an amendment to the lease can be negotiated between the tenant and the property owner for solar power generated. For example:

Purchase and Sale of Electricity. Lessor shall install and maintain a solar array on the roof of the Premises. Lessee shall purchase from Lessor, and Lessor shall sell to Lessee, any required electric energy generated by the System. Any energy not required by Lessee shall remain the property of Lessor, and Lessor may sell the excess to a power company at its option. Lessee may purchase electric energy for the Facility from other sources only if the Lessee’s electric requirements at the Facility exceed the output of the System. There shall be no minimum supply of electricity guaranteed under this agreement.

Billing and Payment. Lessee shall not have to transfer Lessee’s electricity bill to Lessee’s name and pay the [local utility company] (hereafter, “Utility”) deposit for as long as this power agreement remains in effect. Instead, Lessor shall pay the entire Utility bill and submit an invoice monthly for reimbursement to the Lessee of the total electricity bill minus an annual discount of [% or $].

Environmental Attributes, Environmental Incentives and Tax Credits. Lessor is the owner of all Environmental Attributes and Environmental Incentives and is entitled to the benefit of all Tax Credits, and Lessee’s purchase of electricity under this agreement does not include Environmental Attributes, Environmental Incentives or the right to Tax Credits or any other attributes of ownership and operation of the System, all of which shall be retained by Lessor. Lessee shall cooperate with Lessor in obtaining, securing and transferring all Environmental Attributes and Environmental Incentives and the benefit of all Tax Credits, including by using the electric energy generated by the System in a manner necessary to qualify for such available Environmental Attributes, Environmental Incentives and Tax Credits. Lessee shall not be obligated to incur any out-of-pocket costs or expenses in connection with such actions unless reimbursed by Lessor. If any Environmental Incentives are paid directly to Lessee, Lessee shall immediately pay such amounts over to Lessor.

Term. The term of this solar panel system agreement shall coincide with the term of the Lease, unless earlier terminated as provided for in this Amendment. Any Lease extensions shall extend the terms of this Amendment.

How to convince a tenant to buy electricity from you instead of the local utility?

As mentioned above, if the tenant is already paying the property owner for power, either for common space, or because the building is master-metered, you may be able to start billing for clean energy now, without amending lease terms.

On a NNN lease, where the tenant has their own meter with the local utility, some discount may be needed to incentivize the tenant to switch from the local utility to the property owner for electricity. In practice, we have found that tenants do not want to block the adoption of renewable energy. Often a credible bill, and some marketing materials are all that is needed. Giving anchor tenants a 5% discount on the solar generated electricity can speed the adoption and justify the solar investment as well. 

Please give us a call if you have any questions and wish to speak with a professional regarding Multi-metered properties. Primary, secondary, vacation, and rental properties apply.