For property owners who operate in their own building, solar is a slam dunk. The way commercial real estate is valued by the building cash flow. So, as solar decreases the electricity expense, net income increases, and those profits flow to the net cash flow. That annual cash flow, not including the tax incentives, divided by the market cap rate, generally show a $100,000 investment in solar power returns a building increase of $400,000 from the first day of operation.
For triple net building owners, where the tenants pay the electricity bills, solar is still a great investment. Before solar, the tenant is writing one check to the landlord for rent, and another check to the utility for electricity. What if a portion of the electric bill could be moved to the landlord? Now, the landlord is making money from the rent and the electricity costs. And once the solar is paid off, the solar panels do not stop producing. The payments from the tenant keep flowing to the landlord, so going solar, once again, increases the value of the building from the first day.