- February 19, 2025
Multifamily has seen slow growth regarding solar compared to other property types, but recently, there has been a surge. The question is, will it last?
The main challenges for multifamily properties adopting solar include steep upfront costs, complicated permitting processes, property-specific constraints, and long-term considerations surrounding roof life.
Due to the extensive process, owners with smaller footprints often wonder why they should bother more often than owners with larger footprints.
With solar costs falling, technology improving, and strong incentives, multifamily can still benefit, even through the challenges.
If the owner can overlook the challenges, the benefits include adding a revenue stream or attracting residents with lower electricity bills. In addition, having solar panels can be a good way to create a sustainable property.
There has been evidence that solar adoption is more prevalent in single-family residential than multifamily, but there is still potential for growth.
The right conditions, including a blend of permitting reforms, updates to local policies, and the continuation or expansion of government incentives, would help encourage broader solar adoption.
Experts say that if utility rates continue to increase, there will continue to be growth in solar adoption because it will make financial sense.
