Solect Energy announced a rooftop solar site lease program targeting commercial real estate owners. The model allows owners of industrial, warehouse, and retail properties to convert unused roof space into a 20-to-25-year revenue stream without upfront capital investment.
Under the third-party ownership arrangement, a developer leases the roof, then finances, builds, and maintains the solar array. The property owner receives predictable lease payments that directly increase net operating income (NOI). The solar developer assumes all responsibility for system operations, and the lease is typically transferable if the property is sold.
“Because the income stream is long-term and contractual, it is often viewed as low-risk and high-quality revenue,” said Solect Energy. “For portfolio owners, rooftop solar site leases can improve property-level cash flow, diversify income sources, and enhance appeal to buyers and lenders seeking stable returns. Importantly, solar revenue is additive. It does not interfere with existing leases or future tenant strategies.”
Key financials and eligibility
- Investment: $0 upfront cost for the property owner.
- Term: 20–25 year fixed contracts.
- Ideal site: 30,000+ square feet of usable roof space.
- Property types: Industrial, distribution, flex, and large-scale retail.
Solect added that in some cases, developers offer upfront lease payments to fund roof replacements or deferred maintenance before system installation.
Timing is a factor for maximizing project economics. Under current federal “Safe Harbor” provisions, projects contracted before July 4, 2026, can qualify for the full 30% Investment Tax Credit (ITC) with a “placed-in-service” deadline as late as December 31, 2030. Projects contracted after this date must be operational by the end of 2027 to secure the same credit flexibility.
Solect’s program is aimed at the Northeast market, where state incentives and higher electricity rates often drive demand for commercial solar development.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.