Using renewable energy to power a multifamily property is not just for environmentalists anymore.
As the political environment shifts, going green doesn’t just make the world a better place. It’s also highly profitable.
John Matheson is Managing Member and Sustainable Building Consultant at J. Healy Development, where he has developed an expertise in helping multifamily operators increase profits through renewable energy and ecofriendly building methods.
He also serves as Cofounder and CEO of Leverage Finance Software, a platform that supports property investors in making smarter and more informed lender financing decisions.
On this episode of Financial Freedom with Real Estate Investing, John joins cohost Garrett Lynch and me to explain how he adds value to a property with rooftop or on-the-ground solar power.
He describes the benefits of partnering with a solar developer and discusses the financial incentives associated with installing renewable energy across a multifamily portfolio.
Listen in for insight on planning for panel maintenance and learn how to add a revenue stream to your multifamily business in 6 to 18 months with solar energy!
Key Takeaways
How John creates inventory as a permitting specialist
- Build relationships in individual municipalities
- Build to rent or flip permits to big developers
How John adds value to a property with solar power
- Lease rooftop or land to solar developer
- Supply power to building, sell residual to grid
How renewable energy credits or RECs work
- Tenants pay less per kilowatt hour for energy
- State pays multifamily operator as incentive
The benefits of partnering with a solar developer
- Federal tax credit of 26% to 30% for installation
- Take advantage of renewable energy lenders
What factors to consider as you plan to install solar
- Build in cost of panel maintenance
- Must remove panels to renovate roof
The timeline for installing rooftop or ground solar
- Smaller system, faster it goes
- 6 to 18 months to cashflow
How renewable energy attracts tenants
- Mention sustainability in marketing
- Certain kind of tenant will pay more
Connect with John Matheson
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Resources
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eConserve Multifamily Water Conservation Solutions
