By: Claire Cruz
As power prices continue to rise, Plankton Energy suggests its rooftop solar energy leases have the potential to support improvements in NOI and may help reduce bills across the Northeast.
A Region Squeezed by Volatile Rates
From Massachusetts, Rhode Island, New York, New Jersey, Connecticut, to Pennsylvania, commercial property owners have increasingly needed to budget for sticker shock. Dense grids, aging infrastructure, and a dependence on imported natural gas contribute to making the Northeast one of the nation’s more costly—and often unpredictable—regions to keep the lights on. When humid Julys and polar snaps occur, wholesale prices can experience sudden spikes by double digits overnight.
Plankton Energy, founded in New York in 2018, suggests that these forces might be transforming dormant rooftops into a potential financial safety valve. “Electricity used to be an uncontrollable line item,” the company wrote in a recent blog post. “Now it’s a strategic cost that can be reduced, monetized, and potentially protected against future increases.”
Scaling an Idea Skyward
Plankton Energy has completed 50 projects nationwide, deploying more than 26,000 panels and lining up another 50 megawatts in its pipeline. The firm finances, owns, and operates turnkey systems on roofs and parking lots.
Daniel Giufridda, CEO & President, states, “We empower our clients to deploy onsite solar solutions. Even if system ownership is not conducive for our client, we can own the solar on their property, thereby delivering the benefits of onsite clean energy generation.”
Two Paths to the Sun
Plankton Energy styles itself as “financing-structure-agnostic,” steering clients toward either outright ownership or an off-balance-sheet deal:
- Power Purchase Agreement (PPA): Plankton Energy deploys capital and funds the upkeep, then sells electricity to the host at rates that are often 10–50 percent below utility supply charges.
- Solar Site Lease: For landlords who prefer minimal involvement with the hardware, Plankton Energy leases the roof or lot, sells power through community-solar programs, and pays the host predictable rent.
Incentives Sweeten the Math
Federal policy currently offers a 30 percent reduction in capital costs through the Investment Tax Credit. State programs—Massachusetts’s SMART tariff, Connecticut’s Renewable Energy Solutions initiative, and others—add performance payments that can reduce payback periods on an owned array to around five years or less, according to Plankton Energy models reviewed by the Boston-based consultancy Power Advisory.
What the Numbers Mean on the Ground
- Higher asset value: Reductions in operating expenses and new rent streams can increase net operating income, potentially driving cap-rate compression at sale or refinance.
- ESG compliance: Each onsite kilowatt-hour displaces fossil-fueled generation, supporting companies’ efforts to meet decarbonization targets.
- Resilience: When paired with batteries, a solar array can help maintain critical loads during grid outages, offering an additional layer of protection as severe weather events become more frequent.
Barriers Are Shrinking—but Not Gone
Upfront cost, roof age, and permitting complexity continue to discourage some first-time adopters.
“A solar deal is part construction loan, part tax play, and part utility negotiation,” says Nancy Ortega, an energy-finance attorney who has advised several Northeast business owners but holds no stake in Plankton Energy. “Firms that can bundle all three may have an advantage.”
Daniel Schwarts, Head of Business Development, CPA, states, “We pride ourselves on our project development and financial structuring expertise. We bring the sophistication of large-scale solar development to the underserved commercial and industrial sector.”
Looking Ahead
With energy inflation outpacing general CPI and shareholders increasingly emphasizing carbon reduction, Plankton Energy believes solar has transitioned from being viewed as a “nice to have” to more of a “financial consideration.”
