New research conducted by DTZ, part of UGL Services, a division of UGL Limited (ASX: UGL), has revealed a 50% fall in the price of solar photovoltaic installations (PV) in the last 12 to 15 months. Falling prices means it is now cheaper than ever for landlords to install electricity generating panels, despite recent changes to the Feed in Tariff.
Although ‘payback’ periods for solar installations are now less than 10 years, DTZ identifies the biggest benefit to commercial landlords as the improved marketability of buildings – reducing voids and improving income flow – therefore increasing investment value.
Richard Clark, Associate Director, Valuation at DTZ in Bristol, said: “There is a growing feeling that we are at the bottom of the current economic cycle and forward thinking landlords who have consolidated their financial position are thinking of ways to enhance their portfolios. Blue chip occupiers are increasingly seeing the energy performance of buildings as a major factor following recent changes to EPC legislation in England and Wales. Landlords can gain a competitive edge by investing now and will enjoy the payback, both in terms of the installation itself, and by improving the marketability of their buildings.”
Richard continued: “Energy price inflation shows no sign of slowing down, whilst occupiers are becoming more and more concerned about the carbon footprint of their buildings. Landlords who want to put themselves ahead of the field should be considering solar PV, which can offer a secure income stream as well as making their buildings more attractive to occupiers, helping them to stand out from the competition.”
