Make More Revenues with Lower Energy Costs

The statement of lower energy costs equals increased profit is an accurate statement. The current economic slowdown makes it urgent for us to find ways to reduce our utility expenses as much as we can. Unfortunately, real estate owners do not have much leeway to lower their overhead expenses. Due to the slow down in the economy, property owners are compelled to reduce their lease rates. And during this economic situation, solar heating tubes are an excellent capital investment for real estate investors.

In lease agreements wherein water and heating expenses are part of the lease contract, solar heating tubes present the opportunity for owners of commercial properties for rent to significantly lower expenses associated with these utilities. This can be done rapidly and effectively without the tenants being inconvenienced. Pursuing this course of action can be excellent for increasing revenues from a property investment due to lower energy costs.

In 2008, the usual cost to heat the average commercial office in the United States was $28,000. Prices of utilities showed no signs of depreciating in the immediate future. Hence, the solution would be to either increase the rent when the period comes to renew leases, or come up with a sensible plan to significantly lower energy costs. Doing the latter not only insures occupancy, but it also saves some of the funds (that would have been set aside for providing hot water and heating to tenants), back into the property owner's bank account.

How much spending on utilities can be reduced by investing in solar heating tubes? This depends primarily on to what degree the property owner implements this solar option. Of course, more solar heating tubes produce more hot water (in this case, getting into hot water isn't at all bad). In being more aggressive, the property owner can better position himself to take advantage of the other financial advantages of solar energy aside from heating water; which is being able to produce their own electric power to lower their total energy costs.

Providing the commercial building with air conditioning can be costly as well. To cancel a part of these costs; the roof space that otherwise would be serving no purpose, can be used as space for additional solar panels. Therefore, the real estate owner can offset electric power costs all year round by using the current the property itself yielded to power the water pumps needed for the water to be circulated throughout the solar heating tubes.

To reiterate, a very aggressive solar energy strategy will produce higher results quickly. Every property whether industrial, residential, or commercial has different levels of utility and energy requirements that have to be met. But no matter what the size, or structure of the building, it is possible to achieve lower energy costs through the utilization of solar heating tubes, wind generated or solar generated electricity, or even a integration of all three green energy alternatives. Obtaining a fair work estimate from a qualified expert is a sensible idea. Technology in the alternative energy field is rapidly evolving. The supplier you work with needs to actively follow the innovations in the industry, so he can more appropriately advise you on the latest and most efficient custom solution, that will enable you to achieve lower energy costs and higher income.

by Craig Axelrod

About Author Craig Axelrod is VP of Business Development for Emmy Energy, a NY solar powercompany offering solar heating tube systems & solar panels throughout the North East.