Property economics
A better power bill is not
the finish line.
The landlord's real metric is sustainable income and operating performance. We compare energy structures by how value flows through the property—not by headline generation figures.
Property cash flow
Start with the income statement.
Energy-cost savings
Only count savings on electricity genuinely displaced or avoided, net of PPA payments, fixed charges and operating costs.
Utility recovery position
Consider contractual tenant recoveries, consumption allocation, unmetered losses and legally permitted charges.
Additional rental income
Assess whether qualifying roof rental contributes sustainable incremental income after property-side costs and risks.
Value is created where the landlord retains measurable net financial benefit—not where a supplier reports the greatest kWh output.
Illustrative roof-rental calculator
What could your roof earn?
Use the area actually available and commercially chargeable under a potential lease. This is not automatically the centre's gross lettable area. R8/m² per month is an illustrative benchmark, not an offer or guaranteed rate.
Monthly gross rent
R40 000
Annual gross rent
R480 000
Indicative capitalised value
R5 333 333
20-year nominal gross rent at the selected escalation: R17 657 084
Illustration only, before taxes, collection risk, operating obligations and any property-side costs. Capitalised value is annual rent divided by the chosen capitalisation rate solely for sensitivity purposes and is not an independent valuation. The correct approach uses sustainable incremental NOI, appropriate lease risk and valuation methodology; the entire amount may not be capitalisable at the property's headline cap rate.
The distinction that matters
Tenant electricity savings and landlord profit are not interchangeable.
In multi-tenanted property, electricity is commonly recovered through separate tenant accounts. The financial outcome depends on who pays the incoming utility bill, who purchases PPA power, how tenant tariffs are set, what costs are recoverable and who receives the benefit.
What a PPA spreadsheet may show
- Projected generation multiplied by a tariff differential
- Long-term cumulative energy savings
- Technical yield and equipment performance
Missing question: How much of the saving reaches and remains with the property owner?
What Lightpath assesses
- Half-hourly measured consumption against generation
- Full incoming electricity bill and demand charges
- Lawful tenant-recovery and metering position
- Contractual rental and other incremental NOI
- Resilience, operating costs and property valuation implications
Better NOI. Better operating control. Stronger investment performance.
Our aim is to improve net operating income and the owner's property investment return, where supported by the commercial model. This is not a claim that the property's capitalisation rate itself will rise; valuation rates depend on market risk and expected growth.
The property first. Energy second.
Find out what your property's energy should be worth.
Start with an assessment of your roof, utility accounts, tenant recovery structure, consumption patterns and operating objectives.