Commercial landlords seek to boost solar panel coverage, and valuation approach must adapt

More than four in ten (43 percent) commercial landlords globally would like to increase solar photovoltaic (PV) panel coverage to reach 50 percent to 75 percent of their portfolio, despite inconsistency in valuation processes creating uncertainty, according to JLL.

Interest in solar PV has already converted into action: three-quarters of landlords (75 percent) currently have between 5 percent and 25 percent of their portfolio equipped with solar panels. With all industries under pressure to decarbonize, the affordability and accessibility of PV offers many benefits to commercial real estate. As a result, PV is expected to have the highest share of future power-generating capacity, overtaking natural gas in 2026 and coal in 2027.

In addition to the clear environmental benefits of reducing carbon dioxide emissions, significant advancements in PV technology have supported its adoption.

Between 2010 and 2020, the cost of installing PV panels fell by 90 percent, driv