Looked over a retail development project last week--pv adds real value by reducing operating costs.

The strategy is to knock out the parking lot lighting load [house meter] with PV.  In addition to getting a fourteen to sixteen IRR--accretive on a six cap deal--the PV array keeps the roof cooler--lowering AC demand, and provides a nice pop at the time of sale.

Key issue--can the owner can use the 30% ITC and the five year MACRS?  If not, we structure the deal so that the owner buys the power only, and then has the option to buy the system when the tax benefits have been amortized--year six to eight. 

Since these projects are typically on a TOU demand meter--summer peak pricing is close to 3x night and weekend pricing--you tweak the system to maximize value rather than output.

These systems can be wrapped up into the overall construction financing, increasing your returns.

Not tested yet is whether tenants on longer term leases will want PV to power their operations.  If the lease is over ten years, and you can use the tax bennies, the first conclusion is that it may make sense--free power after year six or eight, and you insulate yourself from peak demand price shock.