Report | Creating Resilience

The impact of on‑site rooftop solar PV on logistics property values

July 18, 2023 7 Minute Read

A renewable energy installation with both solar panels in the front and wind turbines in the back.

Decarbonising the built environment plays an increasingly key role in climate change mitigation strategies. The process often includes solar photovoltaic (PV) systems, which are becoming more affordable than ever before. A flat rooftop, common among industrial & logistics (I&L) buildings, lends itself easily to solar panels, helping I&L property owners and tenants to reach decarbonisation goals.

However, despite increasing interest in on-site solar energy production, the impact on market value of commercial real estate remains largely unexplored in Continental Europe, as only very limited commercial and academic research has been conducted on this topic.

 

CBRE’s latest report aims to move the debate forward and exemplify our active engagement in this important subject across our business.

 

Executive Summary:

 

  1. There are two important aspects related to renewables, and in particular, solar energy sources: their role – which is long-term,
    and their costs – most of which are upfront. Solar rooftop PV benefits both the I&L building owner and the local community. A solar rooftop can reduce greenhouse gas (GHG) emissions and therefore limit a building’s contribution to climate change.
  2. The current energy systems have been built over the course of decades. The transition to renewable energy sources will certainly take time, but its pace will depend on the strength
    of the supporting policies. Better access to low-cost capital is critical to improve the affordability of clean energy transitions.
  3. For investors and property owners, investments into energy infrastructure are by nature long-term. The critical element of their value creation arsenal is therefore the long-term profitability of renewable energy sources.
  4. Our view is that early adopters stand to benefit the most in the long-term from renewable energy sources across property portfolios. The findings presented in this report indicate that there is a 4.2% uplift in the value of logistics property after the introduction of on-site solar energy production. Larger installations that benefit from economies of scale could have an even higher positive effect on value.

 

Get in touch with us for the full findings, and to discuss how we can help you further with the challenges it outlines.

 

 

 

of on‑site rooftop solar PV on logistics property values

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