Commercial real estate remains an area of unfulfilled solar potential. Most deployment in this sector has been constrained to properties where large, creditworthy entities own or have long-term leases and sufficient control of the property to support the credit requirements of solar project developers and their financiers.
Luckily, a range of financing innovations has recently evolved to open untapped solar sectors. One of the most promising is property-assessed clean energy (PACE), via which a loan on a solar system can be repaid via a property tax assessment. A PACE loan stays with the property, not the tenant, and offers the ability to underwrite a project with a short-term tenant or other unrated offtaker.