When and where does rooftop leasing (community solar) make the most sense?
At Lumen Energy, we help property owners unlock the full value of their real estate through clean energy. One increasingly powerful tool in that effort is solar rooftop leasing, where building owners earn predictable, passive income by leasing roof space to solar developers who install and manage the systems.
Markets with Momentum
Solar lease opportunities are highly dependent on state policy. Some of the strongest markets include Washington, D.C., Maryland, New Jersey, Massachusetts, and Minnesota. These states offer clear regulatory frameworks, attractive incentives, and strong demand for offsite clean energy. According to the National Renewable Energy Laboratory (NREL), more than 6 GW of capacity tied to these models have been installed in the U.S. as of 2024, with nearly half located in just five states.¹
For commercial property owners in these regions, this presents a unique opportunity to monetize unused rooftop or land space without taking on the cost or complexity of installing solar themselves.
What Kind of Properties Work
Policy is only part of the equation. Physical characteristics of the building are equally important. Large industrial and commercial buildings with flat, structurally sound roofs tend to be the best candidates. Ideal properties typically have:
- 100,000+ square feet of unshaded roof space
- Minimal obstructions like vents or skylights
- New or well-maintained roofing
- Access to nearby grid infrastructure
Why It Makes Sense Now
There is growing demand for clean energy and ambitious climate goals at the state level. Federal tax credits under the Inflation Reduction Act have also made solar projects more attractive to developers.²
Through Lumen’s platform, real estate owners can connect with trusted solar developers in a competitive, transparent bidding process that maximizes lease income and keeps complexity low.
If you own commercial real estate in a top market, solar rooftop leasing could be your next source of recurring NOI.
Connect with a Lumen expert to asses your solar lease income potential.
Sources:
- National Renewable Energy Laboratory (NREL), U.S. Community Solar Market Report
- Department of Energy, Inflation Reduction Act Guidebook
