Energy-Producing Retail Realty, Inc. (EPR2) has announced the first commercial solar installation in the U.S. to take advantage of its patent-pending financing mechanism—a building located in Sonoma County, CA. Through its proprietary Next Level Solar Program, EPR2 is focused on facilitating the deployment of solar energy systems on commercial, multi-tenant buildings. California-based EPR2 estimates the opportunity for development in that state at more than $100 billion.
According to the company, solar companies have historically been unsuccessful selling and installing projects into the immense multi-tenant, commercial building market, in part due to misaligned interests and incentives between property stakeholders. EPR2’s business model looks to solve this challenge by acquiring the legal right from the building owner to install energy producing assets on-site and then providing access to the energy produced to the building owner and tenants at a discounted rate.
Mario Rosati of Wilson Sonsini Goodrich & Rosati, a premier legal advisor to technology enterprises worldwide, and advisor to EPR2, explains that “EPR2’s model is different from any I have seen before. It has the potential to disrupt the commercial solar industry and open the alternative energy buildout for commercial building owners.”
“Commercial building owners benefit from our Next Level Solar program by gaining access to discounted electricity for their buildings,” said Chris Pawlik, CEO of EPR2. “Our business model minimizes capital, technology, and operational risks for owners while increasing a building’s net operating income and value. As opposed to alternative solar options, owners are not required to put any money down or provide a guarantee and are not obligated to fixed monthly payments.”
Dale Dockins, owner of North Bay Commercial Real Estate, whose building now features the solar installation, says, “The best part of Next Level Solar is that it increases my building’s income and reduces my tenant’s electricity bills at no cost to either of us.”
EPR2 intends to accelerate the deployment of solar on commercial buildings by leveraging direct relationships with owners and tenants as well as third parties, such as commercial real estate brokers, who can benefit through EPR2’s partnership programs.
With offices in Southern and Northern California, EPR2 owns and operates solar and other energy producing solutions on behalf of building owners and tenants. EPR2’s clients receive the benefits of discounted clean energy without the obligations of ownership, allowing them to focus on their core businesses.