In the past decade, owners of commercial real estate, investors, and customers have adopted strategies to mitigate climate change. Many Red Bridge clients have prioritized sustainability, renewable energy, and other environmental, social and governance (ESG) measures. In collaboration with best-in-class partners, we have developed lines of business to meet the demand for clean energy generation, battery storage, and grid services driven by artificial intelligence (AI) and smart software.
Blue Sky Utility (BSU)
A key Red Bridge partner, BSU has formulated a specialized solar energy generation and storage offering for retail landlords that uniquely solves the “split incentive” problem for the benefit of shopping center owners and their tenants.
The problem faced by retail landlords interested in solar systems for their shopping centers is summed up by the question: “How will my tenants benefit, and how will I recover my investment?” BSU has addressed that question, structuring an elegant solution applicable to shopping centers, and similarly to other multi-tenant real estate.
BSU develops, builds, and owns the solar arrays, pays the landlord roof rent, repairs or replaces roofs as necessary, and provides solar energy generated on-site to tenants at a discount from utility rates. With no out-of-pocket investment, building owners are able to improve their properties, gain incremental revenues, and meet sustainability goals. Tenants and retail customers benefit by reducing their carbon footprint through consumption of clean energy, and “green premiums” on rental rates have become a reality.
Red Bridge has worked with BSU to install solar and storage systems on 5 California retail malls, and we have a pipeline of follow-on projects for public and private retail REITs and a national restaurant chain.
Blue Oaks Shopping Center 2022
1.5 megawatt grid-connected rooftop solar array at the Blue Oaks Shopping Center in Rocklin, CA generates clean renewable energy to the PG&E utility and credited through virtual net metering. Landlord Merlone Geier Properties earns roof rent, and retail tenants receive guaranteed discounts on their electricity bills.
With Solar Technologies (ST) we have completed projects for houses of worship, office buildings, and retirement centers; we are currently developing a unique offering for rental apartment building owners seeking to invest in solar and bill individual tenants for their actual usage at a discount from utility rates.
ST has been a trusted solar leader in the San Francisco Bay Area since 1998. Using our combined expertise in solar development and financing, Red Bridge and ST have teamed to provide commercial and non-profit clients with the benefits of on-site solar generation – savings on operational costs, increased profitability, and improved sustainability. We have used financing structures tailored to the situation and designed to fully monetize tax incentives. Options include cash purchase, loan financing, power purchase agreements (PPAs), and property assessed clean energy (PACE) financing.