How Property Investors are Mitigating Risk and Maximizing ROI with Solar

Introduction: Why Commercial Property Investors are Installing Solar with Pivot Energy

Historically, many commercial real estate owners and investors have passed on rooftop solar for their portfolios. Despite tax incentives and potential energy savings, traditional behind-the-meter (BTM) solutions often fall short for this audience – requiring upfront capital, complicating tenant lease structures, or offering little financial benefit to landlords who don’t pay their buildings’ utility bills. Tax-exempt real estate investment trusts (REITs) also miss out on available solar tax incentives. A solar solution designed with landlords and investors in mind is long overdue. 

That’s where Pivot Energy comes in. Pivot’s front-of-the-meter (FTM) solar leasing model helps property owners and investors harness the power of commercial solar solutions by leasing unused space on their roofs and parking lots. This hands-off approach provides immediate and long-term financial benefits, mitigating financial risk while creating new, stable revenue streams. When scaled across entire portfolios, the impact on their bottom lines can be significant.

How Solar Leases Reduce Operating Expenses and Boost Net Operating Income (NOI)

Pivot transforms under utilized roofs or parking lots into valuable, income-generating assets by paying owners to host solar projects. Pivot owns, operates, and maintains the solar array while it works to power the grid – and the owners’ profits. In other words, Pivot essentially adds a new tenant – solar – to these buildings, and landlords will receive a steady stream of income with no upfront costs. 

This method provides ongoing revenue stability with decades-long lease terms, and, with no CapEx or ongoing maintenance costs, is a great option for portfolio managers looking for a hands-off way to monetize unused space. 

Investors in states with strong community solar and Solar-Ready building policies – including Maryland, Colorado, and Illinois – are particularly well positioned to benefit from Pivot’s front-of-the-meter solar leasing model, making now the ideal time to act.

The Types of Real Estate Investors Embracing Solar Leases

There are many types of commercial and industrial property owners and investors that can benefit from solar and energy storage solutions, including:

• Real estate investment trusts (REITs)
• Private investment firms, family offices, or institutional investors
• Owner-occupied retail, residential, and industrial properties
• Third-party logistics and asset management companies

Among the top adopters of corporate solar, REITs are increasingly integrating solar into their investment strategies. Solar’s ability to improve asset value, net operating income (NOI), and ESG ratings makes it a compelling choice that resonates with the external stakeholders and investors that REITs rely on for capital and decision-making. 

Private investment firms, family offices, or institutional investors who directly own commercial and industrial (C&I) properties can also tap into benefits from partnering with Pivot, activating long-term value appreciation, tax benefits, and revenue potential.

Other property portfolios across sectors – including retail, multifamily residential, and industrial properties – can unlock significant benefits from rooftop and carport solar. Third-party logistics providers, asset management companies, and owner-occupied commercial real estate portfolios value Pivot’s easy implementation and minimal operational impact, all while positioning solar adopters as leaders in sustainability.

How Solar Enhances Property Value and Tenant Appeal

Adding a solar tenant has additional bottom-line benefits aside from maximizing NOI. Over time, these can translate into higher resale value and a shorter sales cycle.

Tenant and Investor Appeal: Investors who rely on external stakeholder buy-in, like REITs, often see stronger financial performance when prioritizing sustainability. Tenants – residential and commercial – may also value clean energy, helping improve cash flow and rent roll by reducing tenant turnover. 

Roof Integrity: Pivot’s installations preserve roof integrity by regulating temperature and shielding it from UV rays, harsh weather, and debris. The result? Less wear and tear, fewer repairs, and increased property value. 

Economic Strength: Solar strengthens the economies where investments are made – creating jobs, contributing to workforce development, and fostering connections that solidify a property’s place in the local landscape.

Pivot’s Hassle-Free Process

Careful planning and collaboration with a knowledgeable partner are essential to fully leverage solar projects' potential. Pivot’s team manages your lease from start to finish, tailoring solutions to meet your property's unique needs. 

• Sign up and let Pivot handle the rest. Our team will tailor a stress-free lease structure specific to your property, with no CapEx or tenant involvement required.
  
• During development, Pivot manages all site specific due diligence, including permitting, zoning, and grid interconnection – allowing you to start earning quickly.
• Our team oversees the installation of  your solar system with minimal operational disruption, adhering to the highest industry standards and ensuring your property remains damage-free.
  
• Once energized, your solar system is expertly maintained – allowing you to focus on your next deal while enjoying long-term passive income.
• When your lease ends, Pivot will remove the system and restore your property to its original condition – at no cost or hassle to you.

From sign-up to removal, we ensure the long-term success of your project while delivering additional, reliable income. Pivot excels in portfolio-scale projects and actively engages with leading industry organizations like the Clean Energy Buyers Association (CEBA), Retail Industry Leaders Association (RILA), Commercial Real Estate Development Association (NAIOP), and Urban Land Institute (ULI). Our track record ensures we deliver strategic, hassle-free solutions aligned with your investment goals. 

Scaling solar across your real estate portfolio is simple with Pivot. Contact us today for a free property analysis and start unlocking new revenue streams.