Multifamily building developers and owners are looking for cost-saving design solutions that can boost the value of their properties. One strategy to consider is integrating or adding solar photovoltaics (PV). Should you add this feature to your next project?
For real estate developers, now is the best time to install a solar energy system in their projects because solar rebates, tax credits, and incentives are at all-time highs. In addition, community solar programs are spreading throughout the United States.
How can solar power be implemented in a multifamily development?
A multifamily solar electric system can be roof- or ground-mounted. The system may be designed to offset electricity use for common areas or to offset tenant electricity usage and hooked up to a master or individual meters. We understand real estate is at a premium and finding ‘creative’ ways to place solar panels is required.
What are the benefits?
The primary benefit is savings on operational costs.
- Lower monthly utility bills
- Government tax credits: U.S. federal subsidies credit up to 30% of system costs, and each state offers its own incentives.
- Lower emissions
The ITC is a 26 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. Section 48 can be applied to both customer-sited commercial solar systems and large-scale utility solar farms. The residential and commercial solar. The ITC helped the solar industry in the U.S. grow by more than 10,000% percent since it was implemented in 2006, with an average annual growth of 50% over the last decade alone.
What are the challenges?
Unlike a single-family home, where the solar system is connected directly to one electric meter, adding solar power to a multifamily building can be more complicated.
- Lack of eligible roof square footage for solar panels due to roof orientation, structural load limitations, and outdoor amenities.
- Infrastructure costs for connecting, metering, and battery storage.
- Operation and maintenance requirements.
Despite the challenges, Solar (PV) installations have increased dramatically in both the single-family and multifamily sectors due to new policies designed to drive solar market development.
BASE4—All Services In-House
We are architects, engineers & designers rethinking the way buildings get built.
You need design partners who understand how to create efficient and high-quality living spaces with affordable construction options from coast to coast. We can help developers embrace modular technology and all kinds of prefabricated methods and products. Our experts from each design discipline develop your project as economically and efficiently as possible. Feel free to reach out with any questions!