Community Solar Simplified: The System That Can Help Self-Storage Operators Generate Energy and IncomeCommunity Solar Simplified: The System That Can Help Self-Storage Operators Generate Energy and Income

Community solar projects have become a lucrative opportunity for many types of businesses, self-storage operations included. By leasing your rooftop space to a qualified provider, you can generate long-term income that enhances your bottom line while supporting sustainability and generating goodwill with neighbors. Learn how.

Shaun Keegan , CEO and Cofounder

January 15, 2025

4 Min Read
A yellow sun shining on rooftop solar panels

Not long ago, installing rooftop solar panels was a challenge for self-storage operators, but the landscape has shifted dramatically. In many states, you’re now permitted to host solar on your facility roof to generate long-term revenue, without any upfront investment. As clean energy gains traction and solar technology becomes more affordable, you have new options for exploring sustainable energy solutions, which not only boosts your bottom line but aligns with consumers’ changing mindset.

Exploring Community-Solar Installations

With millions of square feet of rooftop nationwide, there’s huge potential for generating solar energy in the self-storage industry. Each facility represents an opportunity.

One style of solar installation that can be used in a self-storage environment is known as front-of-the-meter (FTM). It isn’t restricted by the energy needs of the host building, nor is it necessary for all of the energy produced to be consumed onsite. This means you can maximize your roof area, electricity generation and potential revenue all at the same time.

Community solar is an FTM system that’s rapidly gaining traction nationwide, driven by the growing popularity of clean energy and the potential for rooftop revenue. In fact, it’s already being used by several large self-storage operators.

Related:Storex Self Storage in Sunbury, England, Becomes UK's First Known Commercial Deployment of 'Green,' Low-Carbon Cement

In 2022, Extra Space Storage Inc. put systems on 10 New Jersey locations as part of the state’s Community Solar Energy Pilot Program, which allows residents of low- to moderate-income households to subscribe to nearby solar installations for energy use. The systems comprise a 6.5-megawatt portfolio covering 800,000 square feet of rooftop space. Together, they power more than 1,400 homes across seven counties. The initiative was even recognized as “Community Solar Project of the Year” by “Solar Builder Magazine.”

In August 2023, Public Storage announced that it was adding more than 130 community-solar projects at its facilities in Illinois, Maryland and New Jersey. Again, the program allows residents to subscribe to nearby installations and receive a discount on their electricity, expanding access to renewable energy for those who are unable to install solar panels on their own homes.

Just this year, NSAT announced a plan to pursue community-solar projects on the rooftops of approximately 1,000 facilities in 42 states and Puerto Rico. The plan is to create at least 100 megawatts of solar-energy capacity across 8.5 million square feet of rooftop space. The installations will power nearby homes and businesses at a discount, lowering energy costs and creating a more efficient electric grid by generating clean energy close to where it’s used.

Related:Achieving Net-Zero-Carbon: Advanced Self Storage of Maple Ridge, British Columbia, Becomes a Canadian Pioneer

WEB_-_CubeSmart_Hanover_NJ_-_Solar_Landscape.JPG

CubeSmart in Hanover New Jersey

Self-Storage and Solar: A Perfect Pair

With lots of single-story buildings, large footprints and low energy needs, self-storage facilities are ideal for community-solar projects, which send electricity directly into the grid, where it’s sold to local or regional utilities. They’re often closer to homes and businesses that could benefit from the energy, reducing strain on local electrical infrastructure. Here are a few other benefits:

  • Typically developed by third-party developers or utility companies, community-solar systems aren’t restricted to your storage business. They’re for everyone.

  • Solar generates benefits including energy savings for your neighborhood, fostering goodwill among local stakeholders.

  • A solar-panel system with community benefits positions your company as a valuable resource.

  • Being on rooftops, these systems help preserve open space.

As a self-storage operator, all you need to do is lease your rooftop space to a solar company that will develop, own, operate and maintain the system. Your business can receive lease payments for 20 to 35 years. This creates a win-win scenario. You get a new revenue stream while expanding the use of clean energy and providing solar benefits and cost savings to your neighbors.

Related:Fort Knox Self Storage in Okahumpka, FL, Installs Solar-Energy System

WEB_-_Extra_Space_Storage_Neptune_NJ_-_Solar_Landscape.jpg

 Extra Space Storage in Neptune, New Jersey

Finding the Best Solar Fit

No two self-storage buildings or owners are the same. Each may require a different solar structure. To determine the one that’s right for your facility, you’ll need to consider regulatory and financial incentives, personal site constraints, local energy-consumption patterns and your long-term sustainability goals.

Thankfully, with an experienced partner, a community-solar installation can be quite simple, and there’s no capital investment required on your part. The third-party developer pays all costs. You also have no responsibility for system maintenance. The solar company will monitor and manage your system, conducting regular inspections to ensure optimal performance.

Again, community solar provides the leaseholder with consistent, annual payments, and there are programs active in many states. The clean-energy transition is accelerating and the market is growing rapidly, but the incentives won’t last forever and most favor early adopters. Furthermore, local grid capacities are limited.

So, if you’re wondering when is the best time to pursue community solar for your self-storage business and its neighbors, the answer is now. In fact, delaying can be costly. Industry leaders are acting quickly to capitalize on these programs, making this the ideal time to partner with an experienced solar developer.

Shaun Keegan is CEO and co-founder of Solar Landscape, which partners with real estate companies to develop, install and operate solar projects on their rooftops. The company has deployed more than 500 megawatts of renewable-energy projects totaling more than $1 billion in capital investment and leased 150 million square feet of commercial rooftops. To reach him, email [email protected].

About the Author

Shaun Keegan

CEO and Cofounder, Solar Landscape

Shaun Keegan is CEO and cofounder of Solar Landscape, which partners with real estate companies to develop, install and operate solar projects on their rooftops. The company has deployed more than 500 megawatts of renewable-energy projects totaling more than $1 billion in capital investment and leased 150 million square feet of commercial rooftops. To reach him, email [email protected].

Subscribe to Our Weekly Newsletter
ISS is the most comprehensive source for self-storage news, feature stories, videos and more.

You May Also Like