Community Solar: A Growing Opportunity Within Commercial Real Estate

Overview of the benefits and opportunities from community solar for commercial property owners.

CBRE

NORTHAMPTON, MA / ACCESSWIRE / May 6, 2024 / CBRE Group, Inc.

America's Solar Surge

As the U.S. invests in renewable energy, solar power continues to gain momentum, with installations growing by 22% annually over the past 10 years¹ and 51% in 2023 alone.² According to the Solar Energies Industry Association, this growth has been driven by:

• Reduction in costs for solar photovoltaics (PV) installations
• Rising demand for sustainable electricity from both public and private sectors
• Federal policies like solar Investment Tax Credit (ITC) and, more recently, the Inflation Reduction Act (IRA)

At the end of 2023, there was just over 179 gigawatts (GW) of solar capacity installed nationwide, enough to provide power for approximately 33 million households.³ The U.S. Energy Information Administration projects that a record 36.4 GW of solar capacity will be added to the energy grid in 2024.⁴

While rooftop solar continues to be a game changer for many property owners, it isn't always an option for others, particularly renters and low-and-moderate-income (LMI) households. LMI households are frequently renters and therefore it is difficult for them to persuade property owners to install on-site solar. To overcome these obstacles, the concept of community solar emerged in 2010, providing customers with access to solar energy without the need to install PV panels. Over the past 10 years, community solar has experienced an average annual growth rate of 80%, reaching approximately 6.49 GW at the end of 2023.⁵ Looking ahead, community solar is forecast to double by 2028,⁶ reaching 14 GW.

This Viewpoint aims to highlight the benefits and opportunities from community solar for commercial property owners, particularly in urban areas with high renewable energy demand but limited properties that can accommodate on-site solar.

^{1, 3, 5} https://www.seia.org/solar-industry-research-data
² https://www.seia.org/us-solar-market-insight
⁴ https://www.eia.gov/todayinenergy/detail.php?id=61424
⁶ https://pv-magazine-usa.com/2024/02/20/u-s-community-solar-installatio ...

What is Community Solar?

According to Altus Power (a full-service solar company offering unique commercial, industrial, and community solar customer-focused solutions from coast to coast), community solar gives local businesses and residents shared access to renewable energy and its benefits by remote access to existing solar installations. By subscribing to a community solar project, property owners can reduce their carbon emissions and electricity costs without making any changes to their rooftop or home. This transformative business model encourages more clean energy in the community and is designed to provide renewable energy access to those who might not be able to install solar panels due to factors like limited rooftop space, shading, outdated electrical systems, high costs, or because they do not own the building.⁷