WASHINGTON (May 9, 2022) – There’s a strong business case for including renewable energy assets in real estate development plans, according to a new report from the Urban Land Institute (ULI). Investments in renewable energy have the potential to unlock billions in new real estate value, helping owners reduce long-term energy costs and in many cases generate supplemental income from their existing assets.

Renewable Energy Strategies for Real Estate is the latest report from ULI’s Greenprint Center for Building Performance. As momentum builds for decarbonizing the built environment, the report provides a comprehensive framework for implementing renewable energy both on- and off-site. By prioritizing renewable energy in their projects, real estate organizations can reduce their carbon footprint and add value for buildings, tenants, investors, and communities.

“Renewable energy is the fastest-growing power source for buildings globally but still accounts for less than 15% of the total energy used by buildings,” said Billy Grayson, Executive Vice President of Centers and Initiatives at ULI. “Between rising prices for fossil fuels, the declining cost of renewables, and more government incentives for emissions reduction, the business case for pursuing renewable energy in real estate has never been stronger. ULI Greenprint is excited to bring leaders from the real estate and sustainability sectors together to provide a model for putting real estate on an environmentally conscious trajectory for the long term.”

The report is informed by the views of ULI scholars, real estate leaders, and experts in green energy. It identifies four key recommendations for real estate practitioners interested in renewable energy:

1. Create tailored approaches: The best strategy for implementing renewables varies by organization, building, and situation – and is informed by an entity’s goals, financials, and priorities.
2. Plan ahead: As demand for renewable energy increases, real estate organizations can begin exploring renewable energy opportunities now in order to gain experience and build relationships with service providers who can help them succeed.
3. Involve experts: On- and off-site renewable energy deal structures are numerous, complicated, and best supported by expert external stakeholders.
4. Maximize energy efficiency first: There are a number of steps on the pathway toward net-zero emissions, including renewable energy, but energy efficiency is often the highest impact investment.

“Renewable energy is not new to real estate,” Grayson continued. “In reality, these strategies can help developers and stakeholders lower energy costs, earn additional income, and access financial incentives. Not to mention they can help meet tenant and investor expectations and create community benefits.”

The full Renewable Energy Strategies for Real Estate report is available on ULI’s Knowledge Finder platform.

For more information, email [email protected].

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About the ULI Greenprint Center for Building Performance

The ULI Greenprint Center for Building Performance is a research center focused on climate mitigation, making the business case for green buildings by tying carbon reductions to increased asset value. ULI Greenprint also includes a worldwide membership alliance of leading real estate owners and developers committed to improving the environmental performance of the global real estate industry, striving to reduce greenhouse gas emissions by 50 percent by 2030 and to achieve net zero carbon operations by 2050. ULI Greenprint is organized within the ULI Randall Lewis Center for Sustainability in Real Estate, which also oversees ULI’s Urban Resilience Program and the Building Healthy Places initiative. For additional information, visit uli.org/greenprint.

About the Urban Land Institute

The Urban Land Institute is a nonprofit education and research institute supported by its members. Its mission is to shape the future of the built environment for transformative impact in communities worldwide. Established in 1936, the Institute has more than 45,000 members worldwide representing all aspects of land use and development disciplines. For more information on ULI, please visit uli.org or follow us on Twitter, Facebook, LinkedIn, and Instagram.