Børsen: Solar cell systems are now so cheap that both tenants and landlords get financial gain.

There are both environmental and financial gains when NREP during the course of 2020 receives 7 MW roofing systems at 5 locations in Denmark. It’s not just about a green image. It is also quite a good business financially to establish photovoltaic systems on commercial rental properties.
Large roofing systems have the largest financial gain
Johan Hallgren Madsen highlights the logistics properties as particularly suitable for photovoltaic systems:
“The buildings have large flat roof areas which enable large and cost-effective facilities. Our properties typically have roof areas of 15-60,000 sqm. Furthermore, there are typically no problems with restrictive local plan requirements. This is due to the properties’ location outside densely populated areas.”
Sales Director Jesper Sidenius from Solar Nordic is the supplier of the photovoltaic systems. He also highlights facilities on flat roofs as the solution that most easily provides financial gain.
“The systems can be installed separately with ballast, and this means that you do not make any breakthrough of the roofing,” says Jesper Sidenius.
Thus, the cost of establishing this type of system is much less than similar systems on properties. In situations where the roof has a slope and where a direct installation with fittings is necessary.
A Financial gain for both parties
According to Johan Hallgren Madsen, the method used in accordance with the agreement when NREP establishes facilities for business tenants is that it is NREP that invests itself. It is also them who are responsible for operation and maintenance.
The tenant then receives the electricity produced. However, NREP – and other landlords – are legally prohibited from selling the electricity. This means that you have to ensure the same result differently.
“We make the facility available to the tenant, who in turn pays a higher rent. The tenant gets access to all the electricity produced and uses as much as possible and sells the surplus electricity to the grid. The tenant’s savings on the electricity bill, exceeds the rent payment due to this the tenant achieves a net saving from day one,” says Johan Hallgren Madsen.
For NREP, the result is still a satisfactory financial gain, which, however, is typically below their general required rate of return. According to Johan Hallgren Madsen, this model can be financially connected. Even if the tenant’s alternative electricity price is as low as 60 øre per. kWh. This can be the situation when it comes to pure process flow, where the tax is refunded in full.
NREP and their tenants are looking forward to both environmental and financial gain when, during 2020, they receive 7 MW roofing systems at 5 locations in Denmark.