Solar energy adoption is gaining momentum as a cost-effective and sustainable solution for multifamily properties, but for many owners and developers, solar energy feels like a complicated and specialized solution. Even developers and owners who are eager to meet ESG goals or improve their net operating income (NOI) can fall victim to stubborn myths and misinformation about the affordability, complexity and applications of solar solutions.
The reality is that solar energy isn’t just accessible; it’s a smart business strategy. With the right partner, installing solar panels on multifamily properties is a straightforward way to meet increasingly stringent regulations and provide the wider community with clean energy solutions – and it doesn’t have to cost even a cent out of your own pocket.
Let’s debunk five common myths about solar power and uncover the real value it can bring to multifamily properties.
Myth #1: Solar power is expensive to install.
Reality: Solar doesn’t have to cost anything upfront (and can actually drive revenue).
While solar installation does indeed require an upfront investment, what many multifamily property owners and developers don’t know is that they don’t need to be the ones spending.
By partnering with an energy infrastructure and capital company like PearlX, owners and developers of multifamily properties can meet ESG regulations and provide a sustainable source of energy for their communities and tenants without having to worry about installation or maintenance costs. In the case of PearlX, we pay property owners a set monthly rate to rent out the space for the panels and do all the hard work to keep the system running for the full duration of the partnership. Through this model, multifamily owners and operators can benefit from clean energy solutions without dipping into their own capital.
It’s not just about saving money today – solar energy helps properties meet strict sustainability regulations like Title 24 in California, keeping owners and developers in compliance with mandates that can be costly when not met. Solar energy and sustainability amenities also make a property more appealing to environmentally conscious renters and investors alike. By partnering with multifamily owners on solar installation and maintenance, PearlX delivers financial and competitive advantages that are hard to ignore.
Myth #2: Solar panels can only be installed on a rooftop in sunny places that are warm year-round.
Reality: Solar systems are flexible and effective in a variety of climates and configurations.
While sunny states like California and Texas provide ideal conditions for generating solar power, solar systems don’t require constant heat to perform effectively. Even on cloudy days in areas with colder winter months, solar panels can generate energy so long as sunlight is available. With the added benefit of battery storage, excess energy can be captured and stored for use even when the sun isn’t shining.
Beyond rooftops, innovative solutions like carports and microgrids expand the possibilities for installation. Open spaces, parking areas and other underutilized parts of a property can easily accommodate solar panels, adding functionality and visual appeal to your property. PearlX customizes every project, ensuring the installation fits each space and maximizes energy output regardless of location or climate.
Myth #3: You need to be an expert on solar to keep up with the maintenance.
Reality: With the right solar partner, you don’t need to know anything about solar maintenance—because we handle everything for you.
Managing a solar energy system might sound like a complex undertaking, and it is! But it doesn’t have to be for you. For starters, effective solar systems are designed to be low maintenance, with durable technology that can withstand various environmental conditions. And when partnering with PearlX, property owners don’t need to become experts on solar technology or maintaining solar panels – from routine inspections to ensuring peak system performance, PearlX has you covered.
Myth #4: All the energy you produce through solar panels goes directly to running the building.
Reality: Solar energy benefits your property and your community by contributing clean energy to the grid.
While property owners that partner with PearlX can use the energy generated by solar to provide residents with lower-cost, clean power, the impact of a PearlX partnership goes beyond just one building. We take the surplus solar energy and sell it back to local power companies, which then send it out into the wider grid, creating a ripple effect that benefits the broader community. This means that every property that adopts solar energy through PearlX is helping to contribute to a more sustainable future for the locality – one kilowatt-hour at a time.
Myth #5: Solar companies are in it for themselves; it’s not a real partnership.
Reality: PearlX’s business model delivers mutual success, aligning its goals with yours.
Traditional solar contracts like Power Purchase Agreements (PPAs) lock property owners into purchasing a fixed amount of energy over a 20–25-year period. This means property owners commit to a system size based on energy predictions, which can lead to issues if energy needs fluctuate or if energy rates change over time.
In contrast, PearlX offers flexibility by aggregating energy from all its buildings, creating a virtual power plant for energy distribution, trading and selling across different utilities. This approach ensures owners aren’t locked into buying a fixed amount of power, offering more control and adaptability. Plus, with PearlX’s 30-year lease, both parties have a stake in the ongoing success of the partnership.
Sustainability That Boosts Your Bottom Line
Solar power is more accessible, affordable and impactful than many multifamily property owners realize. By partnering with PearlX, you can leverage solar to increase NOI, meet ESG goals and contribute to a cleaner energy grid—all without additional capital or operational burden. It’s time to rethink the myths holding solar power back and embrace a brighter future for your properties.
As a capital and infrastructure provider to multifamily owners and developers, PearlX understands the importance of investing in property upgrades that can increase value and tenant interest without breaking the bank. Here are five practical ways to do just that:
1. Boost the value-add of your outdoor space
One lasting impact of the pandemic has been a greater appreciation for the outdoors and awareness of the importance of addressing climate change. While gardens and landscaping have always been essential to making multifamily properties look more attractive and enticing, modern tenants place a value on these features that goes beyond appearances. Landscaping with native plants, planting community and butterfly gardens, and installing seating in outdoor spaces are relatively inexpensive, easy and low-maintenance ways for owners and operators to demonstrate commitment to sustainability. These features help attract new tenants and make existing residents feel good about where they’ve chosen to live.
2. Get up on sustainability regulations – without paying out of your own pocket
In many parts of the county, sustainability is no longer an option for multifamily developers – it’s written into the law. In California, for example, a recent addition to the state’s Title 24 regulations requires new residential developments to include solar power and battery infrastructure, which can be quite a costly addition to a project’s balance sheet. These regulations not only apply to new residential buildings, but also new carports, a fact that can really throw a wrench into a developer’s plans. Thankfully, there are ways developers and owners can meet these requirements without having to spend any additional cash out of pocket (or ever).
As an energy capital and infrastructure partner, PearlX pays multifamily owners and operators a monthly lease to install solar panels and other electrification amenities on their properties. Residents can access clean energy at a nominal discount, while owners can feel secure knowing they have a back-up power supply on tap in the event utility-provided electricity goes out. The panels are often installed atop purpose-built carports, giving owners another in-demand amenity to offer tenants.
Unlike traditional solar panel deployments, where the provider installs the panels and then leaves, the relationship PearlX has with multifamily owners and operators is a true partnership. PearlX not only installs the equipment but is responsible for its ongoing maintenance. That also means that PearlX will be there to help stakeholders identify and capitalize on new energy-based revenue opportunities.
3. Foster a sense of community by leveraging programming in underutilized amenities
Shared spaces like seating areas, sport courts and pool areas are a must-have for modern multifamily properties, but the reality is that these amenities sit mostly unused. For little or no cost, multifamily owners and operators can leverage these shared spaces to enliven the property and increase tenant happiness and satisfaction. Game nights, water aerobics, cooking classes and sports tournaments are just a few ideas to put a smile on tenants’ faces, create positive word-of-mouth about the property, and make it harder for residents to leave when it comes time to renew their lease.
4. Embrace managed WiFi for tenant convenience, satisfaction – and retention
Within a single multifamily property, residents could be getting their internet access from five or six different providers with varying prices and service levels. Managed WiFi eliminates that price and service variability by bringing in a third-party specialist to outfit, configure, secure and administer internet access for the entire community. Multifamily owners and operators then sell access to their tenants, who can use a single login across the entire property, whether they’re at home, laying by the pool or walking their dog.
5. Supercharge your parking lot with electric vehicle charging stations
While the days of electric vehicle (EV) manufacturers giving away charging stations for free are over, third-party providers may have an even more attractive offer for multifamily owners and operators. These companies will lease parking spaces and install and maintain charging stations in those spaces, which they then lease to tenants who own EVs. This model can not only create a lucrative new revenue stream for property owners, but help them earn green energy credits, as well. These credits allow properties holding agency debt to lower the basis points on their loan based on decreases in electricity consumption.
The options above enable multifamily owners and operators to add valuable amenities at little or no cost, boost their sustainability bona fides, generate revenue and reduce costs.
While the interest rate and capital economic environment continues to be challenging, the fundamentals for multifamily housing are still very healthy, with incredible demand fundamentals. Multifamily owners and operators who invest strategically to find new sources of revenue, reduce costs, grow market share and maintain occupancy and rent levels will be in a better position to bridge the gap until more favorable conditions prevail.
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