All types of businesses are realizing the power of going solar. Solar power isn't just about saving the environment; it's a smart financial move that can enhance your company's sustainability and bottom line. From savvy building owners that save hundreds or thousands per month on utility bills, to landlords that can give their tenants a break on energy bills, while still creating a cash flow from their arbitrage on solar savings and the amount they charge tenants.
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Landlord: Private Apartment Complex Owner
Property Type: Multi-unit Apartment Complex
Location: San Diego, CA
A private property owner and a forward-thinking landlord, sought to enhance the appeal of their apartment complex while maximizing returns on investment. The primary objectives were to provide tenants with significant energy cost savings and explore avenues for leveraging solar energy to generate additional cash flow.
The property owner decided to invest in a solar energy system to power the building within the apartment complex while also leveraging the excess solar energy to generate cash flow through a strategic approach known as energy arbitrage.
The property owner collaborated with a reputable solar energy solutions provider to design and install a solar energy system on the property. The system was strategically sized to meet the energy needs of the apartments and common areas.
Solar energy generated during the day was utilized to power all areas such as individual apartments, hallways, laundry rooms, and outdoor lighting, significantly reducing the complex's dependence on the grid. This resulted in immediate cost savings on utility bills.
Any excess solar energy generated during the day was sold back to the utility company for credits to be used during evenings or cloudy days. This was achieved by properly calculating the offset (monthly/annual energy use on a historical basis and panels required to meet the average usage, plus a 5% over for any future energy use increases that may occur).
The property owner strategically sold surplus stored solar energy back to the grid during peak demand hours when electricity prices were higher. This allowed them to earn revenue from the excess energy generated by the solar system. He also charged the tenants slightly higher than what his cost was, giving him a monthly cash flow from energy usage.
To pass on the benefits of the solar system to the tenants, the property owner implemented a cost-sharing model. Tenants were billed a reduced rate for their energy usage, factoring in the solar energy contribution, resulting in reduced utility bills.
Tenants experienced a significant reduction in their energy bills due to the shared solar energy system, making the apartments more attractive and affordable.
The cost savings and environmentally friendly approach increased tenant satisfaction, leading to higher tenant retention rates and positive reviews.
The energy arbitrage strategy generated consistent cash flow for the property owner, contributing to a quicker return on their solar investment and ultimately increasing the property's overall value.
The solar energy system significantly reduced the property's carbon footprint, aligning with the property owner commitment to sustainability.
The solar energy system protected the land owner and his tenants against further price hikes in the future. With a historic average of 4% hike realized by most utility companies, this amounts to hundreds of thousands in savings over a 20 year period for the complex. The owner can then decide with future tenants how much utility hike savings he wants to pass along vs how much cash flow he wants to put to his bottom line, striking a balance between keeping his apartment complex competitive advantage and future increased cash flow.
By investing in solar energy and adopting an energy arbitrage strategy, the property owner successfully achieved their goals of enhancing tenant satisfaction, reducing operational costs, and creating a new revenue stream. This case study demonstrates the potential for landlords to achieve both environmental and financial benefits through smart solar energy integration.
Business: Restaurant, owned the building
Location: Los Angeles, CA
Green Leaf Bistro, a popular restaurant known for its sustainability initiatives, aimed to reduce operational costs and minimize their carbon footprint while maintaining their commitment to eco-friendliness. The primary objectives were to cut down on monthly energy bills and achieve significant annual savings.
Green Leaf Bistro decided to harness solar energy to power their restaurant and reduce reliance on traditional energy sources.
Green Leaf Bistro partnered with a reputable solar energy solutions provider to design and install a solar panel system on the roof of their restaurant.
Advanced energy monitoring systems were integrated to track the solar energy production and the restaurant's energy consumption patterns.
The solar panels were connected to the restaurant's electrical system, allowing the solar energy generated to directly power the restaurant's operations.
Energy-efficient appliances and lighting were installed to optimize energy consumption and further enhance savings.
The integration of solar energy resulted in an average monthly savings of 30% on the restaurant's energy bills.
Annually, Green Leaf Bistro saved over $12,000 on their energy costs, contributing to a significant reduction in operational expenses.
The solar energy system helped Green Leaf Bistro reduce its carbon footprint by approximately 25 tons of CO2 annually, aligning with their sustainability goals.
Green Leaf Bistro's commitment to sustainability and the visible solar panels on their roof garnered positive attention from the community, attracting eco-conscious customers.
By embracing solar energy and incorporating energy-efficient practices the restaurant achieved immediate and ongoing financial savings while upholding their commitment to sustainable business practices. This case study demonstrates the tangible benefits of embracing solar power in the restaurant industry, showcasing a win-win scenario that's good for both the environment and the business's bottom line.
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