Would you rent your roof?

Discussion in 'Commercial Property' started by The Sparky Investor, 2nd Dec, 2019.

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  1. The Sparky Investor

    The Sparky Investor Well-Known Member

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    Perth
    So I'm working for a company that has recently won the ability to install a solar system on a commercial roof, and then sell the energy made from said system to the clients in the building. My question is, would you rent you roof to do this?
    The plan is to rent the roof for a long term (10 years for example) to make the money back from the solar system.

    Would you let this happen on your commercial building? Do you think it would increase the value of your property?
    I ask this because while I'm an electrician installing the systems, I'm trying to get into the sales side of things to get off the tools. So I was wondering what would make you keen on this idea?
    The fact that would automatically have another tenant on a long term lease? Your current tenant would be more likely to stay with you? You could ask for a higher rent from your existing tenant? What would you want to hear if a salesperson came to you with this idea?
     
  2. Trainee

    Trainee Well-Known Member

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    How much would the owner make out of this?
     
  3. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Dear Sparky,

    a couple of thoughts for you to consider
    Scenario:
    You own the building and have rented the roof space to the solar Co.
    Hail storm (or any other storm) damages your roof.
    You need to 'turn off' the solar to access the roof for essential repairs.
    The tenants in the building have no power.
    The Solar Co sues you for not permitting them to use your roof.


    I hope this helps,
     
    Archaon likes this.
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    How are the issues to be managed:
    • Site access
    • Installation of roof access systems/catwalks
    • Access to other services (eg: Air conditioning ODU)
    • Roof repairs
    • Make good
    • Maintenance
    • Switchboard upgrades
    • Structural engineer's certification for loading
     
  5. Stoffo

    Stoffo Well-Known Member

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    Sydney
    I looked at this for a large resi complex.
    Proposal was for the supplier to install over 100kw of panels for free
    They get all the feed in credits for 5 years, then walk away
    After 5 years we keep the system and the complex benefits ;)

    I couldn't get it over the line at the AGM !
    The new committee chose to spend over $12,000 to change lighting to LED claiming that will save on power use :confused:
    Having 4 elevators accounts for the majority of power use o_O
     
  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Some states have laws which prohibit a landlord acting as a energy retailer or wholesaler. s88 of the National Energy Retail Law No 37 NSW is a good example in NSW. NCAT can refer to it in a tenancy dispute over rent terms, electricity benefits, costs and billing.
     
  7. willair

    willair Well-Known Member Premium Member

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    ..Sunny Qld...
    I don't blame you from going from on the tools week by week employment into sales..
    All you would have to do is think about everything that's been posted above work out the honest reply ,then you will sell everything..
     
  8. MRO

    MRO Well-Known Member

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    Location:
    Perth
    How much $$ do i get?
    What is the risk?
    What if there is a vacancy period?

    I generally like the idea as it is additional income for me as an owner for space that is currently not used.
     

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