In July 2007, BOMA International (the Building Owners and Managers Association) launched the Market Transformation Energy Plan and 7-Point Challenge to reduce energy consumption in commercial buildings by 30 percent by 2012. (For more information, click on the link on the right.) BOMA International believes that reducing energy consumption and taking other steps to "green" existing buildings helps drive ROI, keeps properties competitive with new construction and benefits tenants and the environment.

The commercial office building industry spends approximately $24 billion annually on energy and contributes 18 percent of U.S. carbon dioxide emissions. Energy represents the single largest operating expense for office buildings, typically a third of variable expenses.

Some case studies shown at a recent BOMA conference indicate that "green buildings" have both higher occupancy rates, lower turnover, and higher resale value.

Pay for the Power, Not the Panels
"The P.P.A. model is becoming the dominant model," said Edward Levin, vice president for global capital markets at Morgan Stanley. "It is no longer a plausible business model for a solar developer to sell panels to a property owner or corporation." The market for commercial solar power installations is not based solely on environmental concerns. Solar power is exploding because of "pure economics," said Barry Neal, director of environmental finance at Wells Fargo. Companies like Wal-Mart and Kohl's are turning to solar power because "they can actually reduce their electricity costs, particularly in states like California and New Jersey," where electricity rates are high and rising, Mr. Neal said. Those states, which also offer generous incentives, account for about 85 percent of solar installations in the country.

NYTImes
3/26/08

 

 

Building Owners and Managers Association