Leasing your roof for solar energy is a straightforward way to generate passive income on a long-term basis. If you have vacant roof space sitting there, then leasing that space for a solar PV array is a way of putting that empty space to work and making it useful. Now that we’re over a year into a global pandemic, businesses and property owners are seeking ways to recoup losses that they may have incurred. A solar roof lease is a great way to generate a stable, predictable income on a long-term basis, using an existing asset—your roof.
Passive Income For Massachusetts Property Owners
The Solar Massachusetts Renewable Target (SMART) Program allows for rooftop solar leasing in both National Grid and Eversource territories across the entire state of Massachusetts. A solar roof lease involves a solar developer paying a property/business owner for the use of their roof to host a solar panel array. This hosted solar array then sends energy to the electricity grid—for which the system owner receives a payment from the utility company. In addition to rooftops, property owners can also lease out their carports or unused land for additional solar panels in order to maximize the profitability of their available space.
Why Not Purchase the Rooftop Solar Array?
While it is true that business owners with substantial roof space have the option of purchasing the solar PV system themselves, this option comes with more responsibilities than a solar roof lease. In the purchase scenario, the business owner would have to buy/finance the solar array, and also ensure proper system operations & maintenance to guarantee optimum performance and the greatest return on investment. With the lease option, the owner receives a guaranteed, fixed income on a long-term basis, while a project developer like YSG Solar handles all O&M for the duration of the system’s lifespan and pays the businesses owner on a regular basis for the entire lease period. With a rooftop solar lease, the return on investment is immediate and stable.
How Much Money Can a Solar Roof Lease Make?
The amount of available space on the rooftop will, of course, play a significant role in determining the lease rate offered to a business owner by a solar developer, but it isn’t the only factor. The condition of the roof, as well as the site’s proximity to the grid will influence the amount the solar developer is willing to offer for the lease. Additionally, the SMART Program is a declining Block Program, meaning that the rate paid to the owner of the solar PV system by the utility will decline once certain capacity thresholds are met. With this last point in mind, it’s advisable that business owners considering a solar roof lease act sooner rather than later. The longer you wait, the more likely it is that the value of energy and, as a result, the rates offered for solar roof leases will decline.
Why Lease Your Roof for Solar?
A solar roof lease offers a guaranteed, fixed income on a long-term basis—generally over multiple decades—with no upfront investment required. The only contribution needed from the business owner is the roof space, which was just sitting there vacant anyway!
Sample Solar Roof Lease Agreement
To get a better idea of how these rooftop solar agreements work, it’s worth taking a look at the solar roof lease agreement made available from IREC that was issued by the Town of Cohasset, Massachusetts. Better yet, if you have more questions, reach out to YSG Solar by sending us an email or calling at 212.389.9215.
Download a sample solar roof lease agreement at this link.
Learn More About Solar Roof Leasing
If you want to learn more about solar roof leasing, check out our most popular articles on the topic. Just click any of the links below to read more about how you can lease your roof for solar and generate some extra income.
To lease your roof for solar in Massachusetts reach out to YSG Solar today. YSG has been working in the solar sector for over a decade and is vastly experienced in the development of both small and large-scale solar PV projects. To get in touch, send us an email or call at 212.389.9215.
YSG Solar is a project development company responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.