In an increasingly environmentally conscious world, purchasing behaviour is turning green. And the trend is not limited to fashion and hospitality – it’s streaming its way through commercial real estate.
As a landlord, you’ll know the pressure to offer sustainable rentals, from environmentally conscious tenants with increasingly green standards. Adding impetus is the Net Zero target laid out by the British Government, as well as the need for leased properties to have an Energy Performance Certificate (EPC) rating of E or above. The need to comply will escalate in 2027 and 2030, with the minimum rating set to increase. Failure to meet this regulation could incur steep fines of up to £150,000 at a time when financial pressures are stacking up fast.
These pressures are heightened by other regulatory or tax changes, rising interest rates, and across-the-board inflation. Considering annual total returns are down 9.1% across the commercial property sector, removing £130 billion of the value of Britain’s total commercial estate, it’s fair to say landlords are in a difficult position.
Luckily for landlords like you, there’s a tangible solution.
Installing rooftop solar systems can help you to capitalise on the growing demand for sustainable buildings – and meet government ESG targets. They can increase your EPC ratings by over two levels, providing a huge opportunity – in fact, green-certified buildings can translate to 23% higher occupancy rates and an 8% increase in rental income. Prices are 8-18% higher for green-rated offices compared to those without sustainability certifications.
At the same time, solar can be used as an incentive to satisfy existing tenants and pull in those who are looking for their next property. On-site solar will essentially lower their energy bills compared to properties that depend solely on traditional electricity.
Of course, the biggest barrier to switching to solar has always been the cost. Making a huge upfront investment into green energy, however helpful it may be for boosting ESG initiatives, might not be top of your priority list.
This is where Electron Green’s offering comes in.
Most businesses are unlikely to have a solar expert on their team. As such, the challenge is not just finding the upfront capital for the PV system, but also having the expertise to specify the right system quality and size, as well as understanding the ongoing maintenance requirement.
This is why Electron Green works with landlords of all sizes, including some of the biggest in the world, on their portfolios across Europe. For those who want to invest capital, we are their ‘right-hand partner’ for solar, handling strategy, due diligence, specification and full project management of installations. But that’s not all we do.
Much of our work involves installing our own fully funded rooftop solar PV systems to supply tenants with low-cost solar electricity. For this side of the business, we handle everything free of charge – from the initial evaluation and survey of the building to the installation of PV panels and long-term maintenance.
The only cost paid in this instance is the solar electricity used, which can meet up to 40% of the tenant’s electricity needs, depending on their usage profile and the size of the roof. Plus there’s no need to change existing utility contracts. Instead, the building will simply use the lower-cost solar electricity first, before pulling from the grid, leading to lower energy bills for the tenant.
By covering every aspect of the installation and maintenance for free, switching on solar suddenly becomes simple, and you’ll have a demonstrable, visible way to prove your ESG commitments. When it comes to keeping track of panels across your property portfolio, Electron Green software enables you to see installations at the click of a mouse.
Implementing on-site solar is essentially like attaching an asset to an asset, complementing your property. Ensuring that it is correctly specified and properly installed is important to avoid risks down the line, but the responsibility won’t fall on your shoulders or exhaust already stretched resources – that’s what Electron Green is for. Tom Hargreave, Delivery Director for Electron Green advises:
“The joy of solar as a technology is its simplicity. But that doesn’t ensure plain sailing if you don’t plan well. A full-service approach, from first technical assessment through to design, installation, and aftercare, massively reduces the risk of costly mistakes or oversights.”
With financial and regulatory pressures rising for landlords, solar provides a bigger, long-term solution rather than just small fixes and adjustments. Electron Green can help you sidestep hefty fines for energy performance and make properties across your portfolio more attractive to tenants seeking greener options. Net Zero targets are not getting any further away, and so demonstrating that real steps are being taken to meet them today can only work in your favour.
Switching on solar can begin immediately, and the only impact on costs will be from the long-term reduction in energy spend. Developing a trusted, greener reputation can also take time, so acting now only stands to ensure that ESG requirements are met as they become stricter in the future.
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