Earth Day 2025: the role of solar power in commercial real estate

Within the commercial real estate industry, solar photovoltaics (PVs) are key to the expansion of renewables, with the current pace of innovation rapidly reducing costs and enhancing the efficiency of technologies. But should we be doing more, and what are the challenges?

Unlocking potential

A study published in Nature in March 2025, found that if PVs were on every suitable rooftop, the theoretical generation could meet 65% of current global electricity consumption, when combined with battery storage. Adoption of PVs on this scale could even reduce global temperatures by up to 0.13 °C by 2050, as it displaces fossil fuels.

This demonstrates the untapped potential of solar power. The roofs of all types of property from offices, warehouses and car parks, to shopping and data centres, are capable of hosting significant renewable capacity, either to serve on-site operations or feed back into the grid.

Innovations in solar technologies

But we’re not just talking about PVs on rooftops: building-integrated photovoltaics (BIPV) involves integrating photovoltaic materials into a building’s envelope, such as facades, windows, and roofs. 

One example is Australia’s first office building with a “solar skin”. Set to complete next year, this eight-storey Melbourne office will be capable of producing 50 times more energy than average rooftop PVs and should offset nearly all of the building's power requirements. 

Google’s US Bay View office campus is another example. Built in 2022, its “solar skin” roof generates approximately 40% of its electricity needs.

And innovations continue to advance. Silicon photovoltaics are ultra-thin single-layer PVs that promise to be around twice as efficient as those used today.

Rising demand

While the story is different around the world, take up of PVs across commercial property is being driven by tenant and investor demand, as well as regulation. Occupiers and investors are increasingly seeking properties with PVs in order to reduce operating costs amid volatile energy markets and support net zero strategies. In the retail sector, some leading schemes are even advertising their sustainability credentials on-site to the end-user, making net-zero commitments part of their brands.

​While regulatory approaches differ regionally, legislation is promoting installations. New EU laws will soon mandate the installation of PVs on new commercial buildings over 250 sq m by 2029, while similar laws are expected in the UK. In the US, states often go further than national policies. For example, Maryland requires new commercial buildings with suitable rooftops to install PVs.

Overcoming infrastructure and policy challenges

Increasing demand for PVs is not enough however, an outdated grid infrastructure, connection bottlenecks, and lengthy planning and permitting procedures are slowing the global roll-out.

Grid modernisation is the key challenge. Legacy grid infrastructure – originally designed for centralised power generation – is very often ill-equipped to handle the decentralisation and variability inherent in renewable energy. Upgrading grid systems is crucial.

In many regions, the process of connecting new renewable energy projects to the grid is also slowed by permitting procedures. For example, in the UK, companies are waiting up to 15 years to connect to the grid, although UK Grid Connection Reforms announced in April aim to reduce this bottleneck.

A call to action

Earth Day reminds us that urgent action is needed to speed up the global roll out of clean energy and limit the worst effects of the climate crisis. This requires everyone - from landlords, developers and tenants, to policy makers - to scale up their ambitions for renewables. The good news is that technology is rapidly changing the game for solar power, making this proven solution more accessible, effective and affordable than ever.

Further information

Contact Sarah Brooks or Henry Cody

Adaptation or obsolescence: real estate on the front line of climate change