There are a number of states that offer significant financial incentives for investors that implement clean energy technologies, provided in various structures for the tenant, owner-occupier and owner-investor. Clean energy technology options are available to allow for greater savings or increased revenues, and can remain with the real estate asset or move with the sale of the property. These include a selection or combination of: on-site solar PV on the rooftop, parking lot or installed on the ground coupled with battery storage or co-generation technologies. Clean energy technology providers, energy program developers and financial parties are actively looking for options to implement clean energy technologies.

1. Clean Energy Solutions
Five states investors need to consider
May 2018

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Clean Energy Solutions
Aside from the perk of a low electricity bill, going green is
an increasingly lucrative bet for commercial real estate
investors who use state and Federal incentives to get
more bang for their buck.
“Going green can mean many things: creating your own
energy, storing it, and using it more efficiently. New
programs are constantly being added, and existing
programs are being updated,” said Kyle Goehring, Senior
Vice President, Clean Energy Solutions at JLL. “Staying
ahead of the curve is something all investors should be
working hard at.”
Find out which states are offering the best incentives for
owners and investors looking to go green…

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California
The Golden State has been at the forefront of the green
movement for years, banking on the advantage of
plentiful sunshine and the need for more power as its
population continues to grow.
The infrastructure and the government regulation are
already there, so green investment in California is an
easy win.
One of the state’s offerings is the Performance Based
Incentive, which is paid at a fixed dollar per kilowatt-hour
of generation.

4. The island paradise comes with ample sunshine – and
opportunities for investors and owners to soak up some
savings. With the highest electricity rates in the country,
many have already taken advantage of government
programs in place that encourage the commercial use of
renewable energy.
Developers and owners who install new solar electricity
systems, for example, qualify for tax credits on 35
percent of the cost, up to $500,000.
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Hawaii

5. The Land of Lincoln has provisions in place that make solar power king.
In Illinois, it’s all about Solar Renewable Energy Certificates (SRECs). Owners
and operators who are interested in harnessing solar power can turn the energy
they produce into SRECs, which are created every time a megawatt hour
(MWh) of solar energy is produced. The state requires utility companies to buy
SRECs as part of their renewable portfolio standard, so there is readymade
demand for this alternative energy source.
The state also initiated what it calls the Adjustable Block Program, slating prices
for SRECs that are fixed for 15 years.
A word to the wise: Investors must have a letter of intent saying they own land
before they can determine how much their SRECs will be worth. And time is of
the essence.
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Illinois

6. The Solar Massachusetts Renewable Target (SMART)
program may make you reconsider the use of a basement or
other space in your building that isn’t contributing to your
bottom line.
The program allows owners to add to their net operating
income by leasing otherwise unused areas of buildings to the
state’s utilities to store or produce renewable energy.
The program can also help pay for building upgrades such as
solar-paneled roofs or carports, all of which increase asset
value and make buildings more marketable.
“By taking advantage of the SMART program, you’re
essentially getting free or government-subsidized upgrades,”
Goehring says.
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Massachusetts

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Much like Illinois, New Jersey operates on a system that
uses SRECs. However, New Jersey’s program is more
established, having been in place since 2001, and prices
are already set.
Learn how much SRECs cost in the Garden State.
New Jersey

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Contact us
Blake Lacher
Managing Director
Capital Markets
+1 312 228-3811
blake.lacher@am.jll.com
Kyle Goehring
Executive Vice President
Clean Energy Solutions
+1 661 428 8461
kyle.goehring@am.jll.com