How does on-site solar actually affect commercial real estate asset value?

Solar reduces the operating expense line that flows through to NOI. At a typical CRE cap rate of 6%, every $100,000 of annual operating cost saved adds roughly $1.67M to asset value. The math is mechanical: NOI ÷ cap rate = asset value, so a permanent reduction in electricity expense compounds into the long-term valuation. For a fully owner-operated building, the impact is direct; for net-leased assets, the structure depends on how electricity costs flow through to tenants.

What is BEPS and why does it matter for Ontario commercial real estate?

BEPS — the Building Emissions Performance Standard — sets carbon-intensity limits for large commercial buildings on a defined compliance schedule. Failing to meet the standard attracts penalties, and increasingly affects financing access and institutional-investor disclosure requirements. On-site solar reduces a building's grid electricity consumption and the associated GHG emissions intensity — the input to BEPS calculations. The energy audit produces the documentation BEPS reporting requires.

How is solar economic for a multi-tenant building where tenants pay their own electricity?

The structure depends on the lease. Where the landlord pays for common-area electricity, solar offsets that load directly. Where tenants pay separately, options include sizing solar to common-area load only, on-bill arrangements, or virtual net metering structures where applicable. We model the economics against your specific lease structure during the discovery process — most owners are surprised at how favourable the math is even on net-lease structures.

What payback period should commercial real estate owners expect?

On completed Green Integrations CRE projects, simple payback has typically ranged from 5–8 years before incentives, and 4–7 years after the federal Clean Technology ITC and accelerated CCA depreciation are applied. The project IRR is what matters more than payback — and against a 30-year asset financial model, well-structured CRE energy projects typically deliver IRRs that exceed most other capital improvements on the asset.

What incentives apply to commercial real estate energy projects in Canada?

The full federal and provincial stack applies. Headline programs include the federal Clean Technology Investment Tax Credit (up to 30%), Enhanced First-Year CCA (100% accelerated depreciation), provincial saveONenergy / Save on Energy LED retrofit incentives, and IESO Demand Response programs for assets with battery storage or flexible loads. We screen eligibility during the assessment and manage applications end-to-end alongside the project.

Community & Partners Solar Calculator

Start your assessment

01Manufacturing 02Warehousing & Logistics 03Food & Beverage 04Agriculture 05Commercial Real Estate

Commercial Real Estate · Asset managers & owners

Energy solutions.
Built around the asset.

We work with Canadian commercial real estate owners, REITs, asset managers, and property operators to reduce operating costs, improve NOI, support BEPS compliance, and increase long-term asset value through solar, storage, LED lighting, EV charging, and energy efficiency projects.

Start your assessment See our projects

Vicwest Inc. · 590 kW · Stratford ON

Operational reality

Why energy matters in commercial real estate.

#1Reality

Buildings operate with constant energy demand.

Commercial properties rely on continuous electricity for HVAC systems, lighting, elevators, parking infrastructure, tenant operations, and building automation systems.

#2Reality

Utility costs impact asset performance.

Rising electricity rates, peak demand charges, and operational inefficiencies directly affect NOI, operating expenses, and long-term property value.

#3Reality

Tenants expect efficient, modern buildings.

Energy performance, comfort, and sustainability expectations continue to grow across office, retail, mixed-use, and multi-tenant commercial properties.

#4Reality

Energy infrastructure supports long-term asset value.

Solar, storage, LED lighting, recommissioning, and electrical upgrades help reduce operating costs, improve building performance, and strengthen long-term portfolio resilience.

Incentives & rebates

Programs that apply to commercial real estate.

CRE assets qualify for the full federal and provincial incentive stack. The Clean Technology ITC and Enhanced CCA together can recover a substantial portion of project capital cost — and IESO Demand Response programs add ongoing revenue for assets with battery storage, EV charging infrastructure, and other building energy upgrades.

Federal

Up to 30%

Clean Technology Investment Tax Credit

Refundable tax credit applied to eligible solar, battery storage, and electrification capital costs. Significant for CRE owners — applies even where the asset itself is leased to tenants.

Provincial

Variable

Ontario Save on Energy — LED Lighting

Common-area, parking-lot, and tenant-space LED retrofits qualify. Incentive based on verified kWh and kW reduction. Improves NOI without solar.

Federal

100% CCA

Enhanced First Year Capital Cost Allowance

Accelerated depreciation on eligible clean energy investments — deductible in the first year. Improves project IRR meaningfully against a CRE asset’s financial model.

IESO

Ongoing

IESO Demand Response Programs

Assets with battery storage or flexible loads can participate — generating ongoing revenue that improves NOI alongside the operating cost reduction.

See the full Canadian incentives guide →

Solutions for this sector

What CRE projects typically involve.

For commercial real estate, the typical sequence is energy audit → LED retrofit → rooftop solar → EV charging — each stage building on the last and improving NOI and BEPS positioning along the way.

INTEGRTED ENERGY SYSTEMS

Common areas & tenantsLED Lighting

01

Commercial Solar

— Turn unused roof into revenue.

Large flat CRE rooftops are unused real estate. On-site solar reduces grid electricity purchases — directly improving NOI and asset value at typical CRE cap rates.

02

LED Lighting

— Reduce operating costs immediately.

Common-area, parking-lot, and tenant-space LED retrofits reduce operating costs immediately. saveONenergy incentives cover a significant portion of project cost. Improves NOI before solar is sized.

03

Energy Audits

— Establish the baseline.

BEPS reporting requires documented energy and emissions baselines. The audit also uncovers HVAC, controls, and envelope efficiencies that further reduce operating cost.

04

EV Charging

— Build before tenants demand it.

Adding EV charging now — before tenant demand forces a rush retrofit — is significantly cheaper. On-site solar provides a cost-effective power source and supports tenant retention.

Solutions for this sector

What CRE projects typically involve.

INTEGRTED ENERGY SYSTEMS

Common areas & tenantsLED Lighting

Tap or swipe to explore02 / 04

Commercial Solar

— Turn unused roof into revenue.

Large flat CRE rooftops are unused real estate. On-site solar reduces grid electricity purchases — directly improving NOI and asset value at typical CRE cap rates.

LED Lighting

— Reduce operating costs immediately.

Common-area, parking-lot, and tenant-space LED retrofits reduce operating costs immediately. saveONenergy incentives cover a significant portion of project cost. Improves NOI before solar is sized.

Explore LED Lighting

Energy Audits

— Establish the baseline.

BEPS reporting requires documented energy and emissions baselines. The audit also uncovers HVAC, controls, and envelope efficiencies that further reduce operating cost.

EV Charging

— Build before tenants demand it.

Adding EV charging now — before tenant demand forces a rush retrofit — is significantly cheaper. On-site solar provides a cost-effective power source and supports tenant retention.

Featured project

Vicwest Inc. — 590 kW rooftop solar.

A commercial real estate asset in Stratford, Ontario. Roof-mounted high-efficiency modules across a flat membrane roofline — sized to the verified annual load profile across HVAC, lighting, and tenant operations.

590 kW · 1,297 PANELS

Project results

590 kW

DC system size

Roof · 496 kW AC

80.3%

Annual solar offset

719,855 kWh per year

Stratford

Location

Working CRE facility

Aug 2023

Commercial operation

1,297-panel rooftop

System details · Vicwest Inc. Stratford

Location: 362 Lorne Ave E, Stratford, ON
Asset type: Manufacturing & distribution facility
System size: 590.2 kW DC / 496 kW AC
Modules: 1,297 high-efficiency panels
Roof type: Flat membrane · ballasted racking
Annual offset: 80.3% of facility consumption
Commissioned: August 2023

View full project breakdown →

Also in this sector

Pinacle Inc.
Edmonton, AB
Rooftop solar·90.8% solar offset·Highest offset in CRE portfolio

Sector applications

Different commercial properties. Different energy profiles.

Commercial real estate spans very different operating profiles — from single-tenant offices to multi-tenant plazas, mixed-use developments to retail centres, flex industrial to large REIT portfolios. Each calls for a different sequencing of measures.

Commercial office building utilizing energy management and building performance optimization strategies

Tenant comfort · daytime load

Office Buildings

Office properties rely on HVAC systems, lighting, elevators, and tenant operations to maintain occupant comfort and productivity. Energy strategies often focus on reducing operating costs while improving building performance and tenant satisfaction.

Mixed-use commercial development combining office, retail, and residential property uses

Variable occupancy · integrated systems

Mixed-Use Developments

Mixed-use facilities combine retail, office, residential, and shared amenity spaces under one property. Managing varying occupancy schedules and energy demands requires integrated and flexible energy solutions.

Multi-tenant commercial property with shared building systems and common area infrastructure

Shared infrastructure · common areas

Multi-Tenant Commercial Properties

Commercial plazas and multi-tenant properties support diverse tenant operations with varying electricity and HVAC requirements. Energy optimization can improve property efficiency while reducing common area operating expenses.

Industrial commercial property supporting warehousing, logistics, and light manufacturing operations

Flex space · light industrial

Industrial Commercial Properties

Industrial real estate facilities, including flex spaces and light industrial buildings, require energy for lighting, warehousing, HVAC, and operational equipment. Property owners increasingly prioritize efficiency and long-term asset value.

Retail shopping centre with commercial tenant spaces and customer-facing operations

Extended hours · refrigeration

Retail & Shopping Centres

Retail properties depend on lighting, climate control, signage, refrigeration, and extended operating hours to support tenant operations and customer experience. Energy upgrades can significantly reduce operational overhead.

Commercial real estate portfolio managed through energy performance and sustainability initiatives

Portfolio-scale · multi-site

Property Management & REIT Portfolios

Large property portfolios require scalable energy strategies across multiple sites and building types. Asset managers often prioritize operational consistency, sustainability targets, and long-term cost predictability across their facilities.

Not sure which property type best describes your asset? That’s usually the right place to start a conversation. A 20-minute call is enough to map your portfolio load profile against the right scope of work.

Book a sector consult →See all CRE projects

Our discovery process

Start with a conversation. Not a commitment.

Most commercial real estate assets already have enough utility and operational data to identify meaningful energy-saving opportunities. The first step is understanding how the asset consumes power across tenant operations, common areas, and base building systems — and where the strongest financial opportunities exist.

STEP 01

Quick 20-minute discovery call.

We review your asset type, portfolio profile, BEPS exposure, lease structure, and current energy concerns. No commitment required.

STEP 02

12 months of utility bills.

Interval and utility billing data — covering at least one full cooling season — help identify:

demand-charge exposure across HVAC and elevator loads
common-area vs. tenant-metered consumption profile
baseline emissions intensity for BEPS reporting
potential solar, storage, and LED economics
incentive and ITC eligibility against the asset model

STEP 03

Receive an asset opportunity overview.

We provide high-level insight into where solar, storage, LED lighting, recommissioning, or energy audits may create NOI and long-term value — alongside applicable incentive and ITC pathways.

Book a 20-minute discovery callNo commitment required.

Knowledge Centre

Commercial Real Estate Energy Questions

Straight answers from our engineering team — explore the most-asked questions on this topic.

View all related questions

Start your assessment

Plan around your asset. Not against it.

A CRE asset assessment identifies what’s addressable across HVAC, lighting, rooftop solar, EV charging, and recommissioning — and what the combined picture looks like once federal and provincial incentives are applied.

Start your assessment Book a 20-minute call

No commitment required.

Energy solutions.Built around the asset.

Why energy matters in commercial real estate.

Buildings operate with constant energy demand.

Utility costs impact asset performance.

Tenants expect efficient, modern buildings.

Energy infrastructure supports long-term asset value.

Programs that apply to commercial real estate.

Clean Technology Investment Tax Credit

Ontario Save on Energy — LED Lighting

Enhanced First Year Capital Cost Allowance

IESO Demand Response Programs

What CRE projects typically involve.

Commercial Solar

LED Lighting

Energy Audits

EV Charging

What CRE projects typically involve.

Commercial Solar

LED Lighting

Energy Audits

EV Charging

Vicwest Inc. — 590 kW rooftop solar.

Different commercial properties. Different energy profiles.

Office Buildings

Mixed-Use Developments

Multi-Tenant Commercial Properties

Industrial Commercial Properties

Retail & Shopping Centres

Property Management & REIT Portfolios

Start with a conversation. Not a commitment.

Quick 20-minute discovery call.

12 months of utility bills.

Receive an asset opportunity overview.

Commercial Real Estate Energy Questions

Plan around your asset. Not against it.

Energy solutions.
Built around the asset.