Which asset types are best for solar?
At Lumen Energy, we specialize in helping commercial real estate owners identify the most profitable path to deploying solar. While solar can technically be installed across many asset classes, from office to multifamily to industrial, the best fit often depends on a few key factors: roof size, tenant structure, and organizational goals.
Industrial Roofs Are Prime Real Estate
Large industrial buildings, especially those with flat, unobstructed roofs, are often the most straightforward candidates. These rooftops typically provide the square footage needed for economically viable solar arrays. According to the U.S. Department of Energy, commercial and industrial roofs have the potential to host more than 150 GW of solar capacity nationwide.¹
Occupancy Matters
The ownership and occupancy structure of a building can significantly influence the best financing path. In owner-occupied properties, power purchase agreements (PPAs) or direct ownership often make sense—owners consume the energy and realize the savings directly.
But for leased assets, especially those with multiple tenants or short-term leases, things get trickier. That’s why we often recommend community solar (a.k.a. rooftop leasing or front-of-the-meter solar) for multi-tenant industrial buildings. In this model, the property owner leases their roof to a solar developer, sidestepping tenant utility bill complexity while generating passive income.
Aligning With Goals
Finally, choosing the right solar structure depends on your broader goals—whether it’s boosting NOI, hitting ESG targets, or locking in long-term energy savings. Lumen helps you evaluate all of this in seconds using your existing energy data, then brings the best developers to the table through a competitive bid process.
Connect with an expert to see if your building qualifies for solar.
Sources:
- U.S. Department of Energy, Commercial Property Solar Potential
- National Renewable Energy Laboratory (NREL), Best Practices for Commercial Solar Deployment
