ENVIRIA Sale & Lease Back model
Make your real estate portfolio greener while steering clear of tax disadvantages
Unused commercial roof space holds great potential, both ecologically and economically. However, if real estate funds operate their own photovoltaic system on their properties, this is regarded as active entrepreneurial management by the tax authorities and may result in taxation disadvantages. On the other hand, if the roof areas of the property are simply leased out for 20 or even 30 years in order to host PV systems, third parties – in this case the solar provider and/or operator – will need to be granted extensive access rights. The solution: The ENVIRIA Sale & Lease back model, in which your own photovoltaic system is managed by ENVIRIA.
Everyone benefits: We hand over a turnkey solar plant to you and lease it back from you for a 20-year period. You receive a fixed rental income, while your tenants are supplied with low-cost solar power from their own roof. Since the marketing of the energy produced as well as the technical and commercial management fall on us, there are no tax disadvantages. In this model, the real estate fund continues to act purely as an asset owner, because we, as the contractual partner, take over all management tasks and the associated operational risks – while you own the plant.
This is another upside of the ENVIRIA Sale & Lease back model when it comes to the valuation of your property, since a solar plant increases the value of the property in the long term. In addition to the immediate return, owning your PV system has numerous other benefits: you improve your sustainability image, retain tenants through favorable landlord-to-tenant energy prices, and proactively respond to upcoming sustainability-related regulations – in Hamburg, for example, solar systems will be mandatory on existing commercial buildings starting in 2025, while other federal states are also discussing ways to accelerate the deployment of renewable energy solutions on existing properties.
The benefits of the Sale & Lease back model
Fixed rental income
Unbeatable electricity prices for your tenants
Increase in property valuation
Reduced environmental footprint
Visible statement of your commitment to sustainability
Your building becomes part of Germany’s energy transition
Higher ESG rating
Strengthening image as a sustainable company
Proactive implementation of sustainability guidelines and regulations
Frequently asked questions
What requirements does the roof have to meet?
Gable roofs and flat roofs with unshaded area are particularly suitable for a solar system. The minimum size to render a roof interesting for this concept is 500 m2.
Is the concept really fiscally harmless?
Yes. Reputable law firms, which specialize in real estate law, have confirmed that §15 InvStG, i.e. the classification of the plant as active entrepreneurial management on the part of the real estate fund, does not apply, since ENVIRIA is responsible for the repair and maintenance as well as the marketing of energy. We will be happy to provide you with further information and the entire report upon request.
How do the tenants benefit from the solar system?
We supply all the electricity your tenants need at far more competitive prices compared to conventional rates. If the solar system at any point does not produce enough power, we take care of purchasing additional electricity from the grid.
Our 360° principle
Not only do we take care of everything when it comes to conceptualization and management – ENVIRIA is also your single point of contact when it comes to planning, coordinating the suppliers and all other aspects of project implementation.
From charging stations to green roofs – ENVIRIA makes it possible
At ENVIRIA, we offer you simple and straightforward access to the entire renewable energy ecosystem. This way, we remain your single point of contact when you want to integrate additional services and structures with your PV system to increase the value of your investment.
Your direct contact at ENVIRIA
You have questions about our offers or want to learn more about how to harness renewable energy for your company? Just reach out. We are happy to discuss your individual needs and provide information on the topics that are important to you.