First question: who holds the meter?
Office buildings fall into three metering arrangements, and each points to a different project design.
| Arrangement | Who benefits from solar | Typical approach |
|---|---|---|
| Owner-occupied, single meter | The owner, directly | Standard behind-the-meter system sized to base building and occupant load. |
| Multi-tenant, master meter, gross or modified gross lease | The landlord, who pays the utility | Behind-the-meter on the master service. Savings stay with ownership or pass through operating expenses per the lease. |
| Multi-tenant, tenants individually metered | Split: landlord owns house meter, tenants own theirs | Tie to the house meter (common areas, central plant, elevators, garage) or use net metering credit allocation where the state allows it. |
The house meter in a directly metered building is often larger than owners expect. Central chillers or boilers, air handlers, elevators, garage ventilation and lighting, and lobby loads commonly sit on it. A rooftop array sized to that load is a clean landlord project with no tenant allocation required.
Where the array is larger than the house load, some states let the host allocate net metering credits to other accounts. Massachusetts, for example, allows net metering credit allocation for eligible facilities under DPU rules. The mechanics, caps, and export values differ by state and utility, so we confirm them on your specific accounts before sizing.
The split incentive, and how green leases resolve it
The classic problem: the landlord pays for the system, the tenant pays the power bill, and nobody invests. It is a contract problem, and it has contract solutions.
- Operating expense pass-through. In gross and modified gross leases, the landlord captures the savings directly. In net leases, a green lease clause can let the landlord recover a capital cost amortization through operating expenses, capped at the verified savings, so tenants are never worse off.
- Tenant power sales. In some jurisdictions a landlord can sell solar power to tenants at a discount to utility rates. Whether that makes the owner a regulated utility is a state-specific legal question to confirm with counsel before structuring it.
- Data sharing. Green leases commonly require tenants to share utility data. That matters for building performance standards, which require whole-building reporting even when tenants hold the meters.
- Roof rights and access. Make sure leases reserve the roof to the landlord and permit a 20 to 25 year installation, including maintenance access.
The U.S. Department of Energy's Green Lease Leaders program, run with the Institute for Market Transformation, publishes model clauses and is a practical starting point for your leasing counsel.