Energy consumption is a central concern for property owners and real estate professionals alike. Rising utility costs, growing environmental concerns, and government incentives are steering the conversation toward renewable energy sources like wind and solar. But what does this mean for property owners? And how can real estate professionals leverage these clean energies to enhance property portfolios and attract environmentally-conscious buyers or tenants?
In this blog, we’ll explore the benefits of renewable energy, practical implementation options, and the potential environmental and financial impacts of this growing trend. Whether you’re looking to improve property value or reduce air pollutants, this guide will provide clear, actionable steps to help you integrate renewable energy into your investments.
The Benefits of Renewable Energy Sources for Property Owners
Depending on your use case, property owners can benefit from renewable energy sources. Companies like Amazon and Apple can benefit from renewable sources of energy to power their large business centers and their data centers. Businesses like Walmart and Target can take advantage of rooftop solar leases to provide lower energy bills but also generate energy to power their local energy grid. For landowners, they can earn extra revenue on land they might not occupy, land they have inherited in, or land they actively farm or ranch.
Renewable energy enhances property value for residential properties. A study by the U.S. Department of Energy found that homes with solar panels sold 20% faster and for 17% more than comparable homes without them. Buyers and tenants are increasingly seeking properties that align with sustainability goals, making renewable energy upgrades a worthwhile investment.
Sustainability isn't just a buzzword; it's becoming a lifestyle. Many consumers actively seek homes and businesses that reduce environmental impacts. Properties powered by clean energies like wind and solar are not only more attractive to this growing demographic but also demonstrate a commitment to reducing carbon footprints and air pollutants, which can enhance your reputation as a mindful property owner.
Renewable Energy Options for Property Owners
Solar Power
Solar power is one of the most popular renewable energy choices for real estate. It works by capturing sunlight through solar panels and converting it into usable electricity for your property. Different types of solar energy leases can work for different types of property owners like we mentioned before. Utility-scale solar leases are among the most popular due to their size and potential for mass electricity generation.
Wind Energy
Wind turbines are another renewable energy lease option for property owners. While typically associated with larger installations, wind developers can work with neighboring landowners to develop a large wind farm.
Wind energy leases last just as long as solar leases but the landowner has access to a lot more of their property compared to landowners in a solar lease. However, wind energy implementation depends on geographic factors. Properties in open, windy areas enjoy optimal results.
How Real Estate Professionals Can Benefit from Renewable Energy
The integration of renewable energy is reshaping the real estate industry, creating new opportunities and challenges. For real estate professionals, considering green energy capabilities in their operations has become essential. Technologies like solar panels and wind turbines are now key components of modern properties, reducing carbon footprints while adding value. Properties with renewable energy potential can unlock hidden revenue opportunities, such as rooftop solar energy generation.
These changes are influencing how real estate professionals approach decision-making. Factors like electricity costs, proximity to grid infrastructure, and environmental risks tied to oil and gas contamination are now crucial aspects of property evaluation. The added layer of focusing on sustainability and energy efficiency not only enhances property appeal but also aligns with evolving market and regulatory demands. Adapting to this shift is critical for real estate professionals to remain competitive and capitalize on the financial and environmental benefits of renewable energy integration.
These long-term lease deals can provide stable commission income for many realtors looking to engage in the renewable energy market. Using tools like LandGate’s LandApp tool will provide essential information about renewable energy, property value and risk index scores, and list properties for free on a marketplace that reputable energy developers use to find development sites.
Why Renewable Energy Is a Smart Investment
Renewable energy is no longer a “nice-to-have”; it’s a smart business strategy for property owners and real estate professionals. With benefits ranging from passive income, reduced utility costs, and increased property values to environmental sustainability, renewable energy sets the foundation for long-term success.
By choosing clean energies like solar, wind, and geothermal, you’re doing more than just powering the world—you’re improving it. Whether you’re pursuing sustainability goals or looking for ways to reduce your dependence on fossil fuels, the switch to renewable energy is a step forward.
