By: Ashley McDonald
In the fall of 2010 Huntington Properties, a commercial real-estate company leasing office, industrial and warehouse spaces in the Ottawa Region, installed in the first of a series of renewable energy projects on three of their commercial buildings. The renewable energy they produce is in the form of solar electricity, from three sets of commercial rooftop solar panel projects, among the first installed in the Ottawa Region.
Rooftop Solar – Another Tenant
Craig Whitten, of Huntington Properties, said the decision to invest in commercial solar panels was easy. For Craig, “the installations are viewed as another tenant”, which allows them to comfortably review investment and returns. Through Ontario’s Feed-In-Tariff (FIT) Program all the energy produced by the panels is fed into the Ottawa Region’s power grid. The price for the energy is well worth the initial investment. “The solar installation was a good investment decision” Craig said, and their company is looking at an incredible 12% return on investment. A typical solar installation has an effective lifespan of 20 – 25 years. By approaching the installation as a lease of building space to a new tenant the initial investment was justified. Craig explained that often capital investment, through upgrades and general maintenance, will be made prior to leasing space to a new tenant. These regular up-front costs are simply mirrored in the initial cost of the solar panel installation.
Rooftop Solar Panels - Huntington Properties
Attractive Investment
Investment in renewable energy technology is quickly gaining support throughout Ontario. According to the Government of Ontario’s Clean Energy Sector, 150 new solar projects were installed between 2003 and 2007 and that number has increased at a staggering rate. The FIT Program has provided enticing incentives for building owners of all types to engage in solar energy production. As Craig explained, on a sunny day the two smaller 10kW sections can produce 75kWh of electricity each, while the larger 250kW section can produce 1850kWh of electricity, all of which is fed into the grid at a premium price. Through the FIT Program, solar energy can be purchased at $0.75 to $0.80/kWh, while the energy used to power the buildings costs only $0.08/kWh. This type of installation is an example of efficient building use providing both financial and environmental benefits.
Computer software connecting the solar panels to Huntington’s maintenance computers allows for real-time monitoring of the panels. This shows how much energy each panel is producing at any given time. According to Craig real-time monitoring is most useful for maintenance purposes, as it shows exactly how much electricity is being produced and if one panel is producing less than it should. This generally indicates either damage to a panel or, more often, snow coverage or blockage of a panel. There are no moving parts in this form of energy generation which attributes the greatest cause for maintenance to dust or snow coverage, requiring only a cleaning. The computer software highlighting the energy produced by the panels can be viewed on Huntington’s website. It showcases how much electricity is being produced, how many homes that electricity can power and how much carbon is offset by this form of renewable energy generation.
Rooftop Solar Panels from Huntington Properties Project
Solar Investment – Good Business Sense
Engaging in renewable energy projects, such as commercial rooftop solar energy production, not only provides financial returns, but also, as Huntington Properties discovered, the opportunity to participate in energy conservation initiatives. Huntington Properties’ decision to invest in solar energy can best be described by Craig; “For us it made good business sense based on the expected returns and the initial investment. It also provided the opportunity for us to do our part in reducing environmental impacts by lowering the Regions’ dependence on fossil fuels”.
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For a discussion on rooftop solar investment see: “Your Commercial Rooftop Could Be a Source of Income – Part One
Tags: EFIT Solar Energy, Huntington Properties, Rooftop Solar Investment
