It’s comforting to know that no matter how dark things can get, the next day will always begin, once again, with a sunrise. That fact is not lost on National Storage Affiliates Trust (NSA), which is now harnessing the power of the sun to make the world a little brighter – and perhaps a lot better for millions of people.
NSA recently embarked on a solar power initiative designed to improve the communities around them while meeting their commitment to sustainability. Working with Solar Landscape, the leading community solar developer in the United States, the REIT is not only making a difference, but they’re also making money.
As one of the largest owners of self-storage properties in the country, spanning 42 states and Puerto Rico, NSA has plenty of real estate, approximately 68.8 million square feet of it. Solar Landscape saw the value in that real estate, and together the two have entered into a partnership in which Solar Landscape will rent millions of square feet of NSA's rooftop space, installing solar panels that are expected to generate more than 100 megawatts of solar capacity. In addition to delivering environmental benefits and lowering energy costs, the projects will create a more efficient electric grid by generating clean energy close to where it is used. The power will also be provided back at a discount to homes and businesses nearby.
The two powerhouses first partnered up in 2022, and seeing how closely their missions aligned, it’s been full steam ahead ever since. “Solar Landscape has partnered in the past with several real estate companies, including some of our self-storage peers, and they have a solid track record,” says Will Cowan, executive vice president and chief strategy officer of NSA. “That gave us a lot of confidence, and so we began evaluating a handful of sites with them, along with one of our JV partners Heitman Capital, who were instrumental in this endeavor.”
Cowan says Solar Landscape began the process of seeking approvals for certain NSA sites in 2023, which resulted in the signing of six rooftop leases that same year. “It was such an easy process, and such a positive move, that we’re going to keep moving forward.”
“We are thrilled to step up this partnership … Rooftops are undervalued real estate and NSA has a lot of them,” says Shaun Keegan, Solar Landscape CEO and co-founder, before adding some perspective to the project. “We’re looking at covering 8.5 million square feet of NSA’s rooftops. That’s enough solar panels to cover two Disneyland Parks.”
You might expect that installing millions of square feet of solar paneling would cost NSA a fortune, but that’s not the case, says Cowan. “The projects require no capital expenditure by NSA. Solar Landscape develops, owns, and operates the projects and makes a monthly lease payment to NSA. They’re leasing millions of square feet of our unused rooftops.”
He adds with a smile, “Our investors aren’t mad.”
“Our goal is to make it simple,” says Keegan. “If we can have access, we will write you a check and take care of the rest.” He explains that Solar Landscape is essentially a tenant, paying for the privilege of using other property’s rooftops. “The projects are financed through a mix of third-party investments and state and federal incentives. Bottom line is that the facility we’re renting from gets to add to their bottom line.”
Continues Keegan, “If a self-storage facility is worried about customer churn, or the ability to attract new tenants, what’s better than a locked-in 20-year tenant who pays you every month, on time, while strengthening the relationship with the community?”
“It’s the perfect partnership,” says George Hoglund, NSA vice president of investor relations. “We’re receiving direct lease payments from Solar Landscape based on the size of the system on the roof and megawatts generated, and they finance and invest all the capital necessary to install these projects. Then, we give it back to the community. Everyone’s a winner.”
One important aspect of the partnership is how it will create a more efficient electric grid by generating clean energy close to where it is used. This makes even the utility companies, which might otherwise view the initiative as competing with them, very supportive. “They’re often receptive to our initiatives,” says Brendon Shank, executive vice president for engagement at Solar Landscape. “Often, the grid is maxed out or close to it. We reduce that burden, and that’s good for them, too.”
“It’s not a matter of competition,” he says. “It’s about everyone pitching in to reduce the burden on the grid and create as much energy as possible. In a world where we need to combat climate change, it’s important to have all hands on deck.”
Although the solar panels will be generating a lot of energy, NSA’s facilities don’t reap those rewards; they benefit in other ways. “All of the power goes back to the grid, and to local residents and businesses that want to purchase the energy created at a discount through the community solar model,” says Hoglund. “We benefit from Solar Landscape’s lease payments and the goodwill that comes with the projects.”
Of course, not every piece of property is ripe for solar development. “Solar Landscape evaluates our rooftops based on age, type, and size,” Cowan says. “Also, since this energy is going back into the grid, state policy and location of the sites is a factor as well.”
While the evaluation is necessary, NSA facilities are often ideal. “Many of our facilities are one story, with plenty of rooftop space,” says Cowan. “That’s a better prospect for these projects.”
Although this project has just gotten off the ground, Cowan and Hoglund say NSA will continue to look for ways to better the planet and its people. “NSA constantly evaluates ways to reduce our already limited impact on the environment,” says Cowan. He asserts that the company has already retrofitted the vast majority of its facilities to LED lighting, and that they’re using motion-sensor lighting to reduce energy consumption.
“In an effort to optimize our waste management needs, we also have an ongoing initiative to right-size our waste containers and reduce the frequency of pickup in an effort to reduce greenhouse gas emissions and generate cost savings,” adds Hoglund, who says that despite self-storage facilities already being very low consumers of water, NSA also uses water-saving plumbing devices and focuses on incorporating landscaping features that require minimal water usage.
“NSA has always been a good steward of the planet, and that’s just one of the many reasons we were excited to work with them,” says Keegan. “I think that together we are really going to change the landscape of how self-storage looks at, and uses, solar power.”
–
Brad Hadfield is the website manager and a news writer for MSM.