Stuck between rising energy costs and shrinking capital, California building owners and operators have limited options: use less energy, or generate your own. Sure, renewable technologies can be a great solution, but at what cost?
Fortunately, a recent update to California’s energy efficiency programs has made solar, EV charging, and battery storage eligible for on-bill financing. This allows you to implement these technologies without the heavy capital investment, and still meet your long-term savings and sustainability goals.
Keep reading (or watch the on-demand recording of our recent webinar, featuring our guest from life sciences REIT Healthpeak Properties) for the details.
Or contact us directly for a more detailed consultation on what’s eligible for your building!
Solar: Visibility & Cost Savings
Installing solar panels can offset a significant portion of a building’s energy consumption, especially during peak daylight hours when solar output is highest. This reduces reliance on utility-provided electricity, which has seen drastic rate hikes in California (e.g., next year may be over 40 cents per kWh in PG&E).
The Benefits
- Solar helps lower utility bills by reducing the amount of energy purchased from the grid
- Solar panels represent a highly visible example of your sustainability commitment while attracting tenants and increasing leasing appeal
The Financing Details
- Rooftop & carport solar are both eligible
- Third-party financing only
- Structured as lease; owner preserves Investment Tax Credit
EV Charging Stations: A Must-Have Amenity
As more people in California switch to electric vehicles (EVs), tenants are increasingly looking at EV charging stations as a key leasing qualification criteria for their buildings.
The Benefits
- Offering EV charging as an amenity makes a property more attractive to tenants, especially in coastal city markets where demand for EV infrastructure is high
- EV charging significantly reduces emissions from transportation, complementing other building efficiency efforts
The Financing Details
- Eligible for utility capital at 0% interest, when bundled with energy efficiency projects (can be up to 50% of project cost); third-party financing also available
Battery Storage: The New “Hybrid” Building
Battery storage systems can store energy during low-cost times and discharge it during peak demand periods when utility rates are highest. This is particularly useful for managing demand charges, which represent a significant portion of utility bills in commercial buildings, especially here in California.
The Benefits
- A “hybrid” building showcases your sustainability strategy
- Battery storage provides backup power during outages or grid instability (displacing the “dirtiest” power)
- Batteries can help smooth out energy consumption and reduce costly demand charges
The Financing Details
- Eligible for utility capital at 0% interest, when bundled with energy efficiency projects (can be up to 50% of project cost); third-party financing also available
The Cherry on Top: Tax Incentives with the IRA
The Inflation Reduction Act (IRA) offers tax credits that can be applied to energy efficiency projects, including solar and battery storage. These credits further reduce the cost of implementation, providing additional financial incentives for building owners.
In conclusion…
Solar, EV charging, and battery storage are powerful tools for cutting energy costs, attracting tenants, and boosting sustainability in commercial real estate—especially in capital-constrained times. Gridium will help you remove the CapEx burden and take advantage of these financing options to help get your renewable projects off the ground.
Interested in learning more about financing options for solar, EV charging, and batteries?
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