The adoption of solar powered heating in multifamily is proving to have significant impacts on more than just the environment. In fact, implementing this “green” trend could lead to considerable financial benefits including increased NOI, reduced operating expenses and even discounted loan rates and state level incentives. Thought the perks of going solar are undeniable, it seems that the usage of it is somewhat limited to the South-West region due to its high level of solar insolation.
Making an apartment community more energy efficient can boost NOI by reducing operating expenses. While gas and electric power the majority of America’s housing stock, the use of solar thermal heating has increased by 19% from 2010 to 2015.
Metro Level Solar Adoption Trends in Apartment Properties
Of course, solar heating makes more economical sense in certain markets. As expected, metro areas with the highest year-round solar insolation — that is, how much sunlight hits the earth’s surface — have the highest uptake of solar heating technologies in multifamily properties. These are the orange and red areas in the map of solar insolation below.
Read the full research from Chandan Economics on ALEX Chatter.