The Benefits of Solar & Renewables on Surplus or Brownfields Property

As land ownership has become increasingly expensive, many commercial landowners are turning to surplus and brownfield properties as an alternative. Property owners and businesses are also increasingly looking for renewable sources of energy, such as solar, wind, and battery storage, to reduce their carbon footprint, protect themselves from risks posed by climate change, and improve their standing amongst ESG investors. Here, we look at the many benefits of utilizing surplus or brownfield properties for renewables that Verdantas has helped clients better understand and incorporate into their business planning.

Financial Benefits

In an ever-changing and competitive monetary environment, it is important for commercial landowners to ensure their property is not only well-maintained but also yields a return on their investment. Utilizing solar and other renewables on surplus or brownfield properties is one way to do this. Utilizing these alternative energy sources will not only save the owner money in energy costs but also generate a return on their investment through government incentives. In the United States, for example, there are solar tax credits, grants, and other incentives available to property owners and other stakeholders necessary to develop renewable assets.

Cost Savings

Utilizing solar and other renewables on surplus or brownfield properties can help to reduce a commercial property owner’s energy cost. Solar energy, in particular, is one of the most cost-effective forms of renewable energy available. Solar panels require little maintenance and have a long lifespan, meaning property owners can save money on energy costs for years to come. Depending on the project, the property owner may have little to no capital expenditure to build a renewable asset in exchange for a long-term power purchase agreement. In some cases, battery storage systems can also reduce costs by storing excess energy to be used at times when the utility rates are high and reducing loads during peak demand times.  

Government Incentives

In addition to the cost savings, commercial property owners can also benefit from government incentives. In the United States, for example, there are solar tax credits, grants, and other incentives available to property owners. These incentives can help to reduce the cost of installing solar and other renewables on surplus or brownfields property. There are certain incentives that apply specifically to brownfields (including landfills) and communities that have a history of fossil fuel activities (e.g., coal mining) which can be layered on other incentives.

Revenue Generation

Utilizing solar and other renewables on surplus or brownfield properties can also help to generate a return on a property owner’s investment. With the increase in demand for renewables, many commercial property owners are selling their excess energy to the grid and generating a passive revenue stream. Furthermore, property owners can also partner with renewable energy companies to lease or sell their unused property, further increasing their return on investment.

Utilizing solar and other renewables on surplus or brownfield properties can be a financially beneficial endeavor. Property owners can not only save money on energy costs but also generate an additional revenue stream through government incentives and partnerships with renewable energy companies.

Risk Reduction

Development of existing land with a renewable energy source, (e.g., solar) can provide certainty as to how the land will be maintained and used for an extended period (e.g., 20 to 30 years).

 The use of a renewable resource can provide green energy resources only if coupled with a storage system, backup energy supply for a Site. Battery storage systems can provide reliability to critical operations that could be costly due to grid interruptions.

Reduced Carbonization

As the world seeks to reduce its carbon footprint, it is important for commercial property owners to do their part. Utilizing renewable sources of energy on surplus or brownfield properties is one way to reduce carbon emissions and make a positive impact on the planet. Solar energy is one of the most efficient and cost-effective renewable energy forms available. Solar panels require little maintenance and have a long lifespan, meaning property owners can reduce their carbon footprint for years to come.

Corporate Social Responsibility Benefits

The modern investor is increasingly focused on companies and assets that are socially responsible. This means that more investors are looking for companies and properties that are taking steps to reduce their environmental impact. Utilizing renewable sources of energy on surplus or brownfields property is one way to address a company’s sustainability, resiliency, and strategic infrastructure objectives.

You might also like