Warehouses and industrial space are not the first things that come to mind when we think of energy infrastructure. Yet on the rooftops of these buildings, largely out of sight, a whole energy infrastructure has taken shape.

Now, New Jersey’s logistics industry is helping power the state’s energy future while also addressing in-state generation needs and rising energy costs.

Commercial rooftops have emerged as a new layer of distributed energy infrastructure. Successful rooftop solar projects have been developed across the state, from Gloucester to Perth Amboy to Ocean Township.

These projects bring power generation closer to where electricity is consumed, helping add capacity more quickly than many traditional energy projects.

At the same time, they create a new source of long-term income for commercial real estate owners by monetizing otherwise underutilized space.

New Jersey’s Community Solar Energy Program (CSEP) recently expanded to allow significantly more projects. Unlike many other forms of energy infrastructure, rooftop solar can be deployed quickly using existing structures without new land use or major grid build-out.

In a land-constrained state like New Jersey, that makes commercial rooftops one of the most practical near-term ways to add energy supply while creating value for property owners and local communities.

New Jersey residents already feeling the pinch from rising energy costs are seeing a direct impact. Community solar provides access to clean energy and delivers guaranteed savings on utility bills, with a meaningful share of benefits directed to low- and moderate-income households.

Solar Landscape, the nation’s leading solar developer headquartered in Asbury Park, notes that more than 15,300 low- and moderate-income households across New Jersey are already benefiting from the program. Based on current rates, participating households are expected to save about $427 annually on electricity costs.

The environmental and economic benefits are clear for New Jersey residents. At the same time, commercial real estate owners can create significant value by transforming unused rooftop space into a long-term source of income.

In practice, developers lease rooftop space from building owners, build and operate solar systems and deliver the power back to the grid — all while paying landlords long-term rent. For property owners, that turns an underutilized asset into a predictable source of recurring revenue.

These projects are developed at no cost to the building owner, with developers managing the process from development through construction and ongoing operations. The result is a new income stream with no operational burden on owners or tenants while increasing net operating income by as much as 5%.

At Greek Real Estate, we have worked with developers such as Solar Landscape on these projects. They handle the work and ensure there is no operational burden on our team or our tenants. Additional income is generated from assets we already own. Once you see this model work on one building, it becomes an easy decision to expand it across a portfolio.

New Jersey’s current program allows for up to three gigawatts of new community solar capacity, equivalent to approximately 245 million square feet of rooftop space.

Yet only about 5% of viable rooftops across the state currently host solar, leaving the vast majority of this opportunity untapped. The potential is significant.

Meanwhile, as more commercial rooftop solar comes online, battery storage is emerging as the next natural step for industrial property owners.

In addition to hosting rooftop solar, these properties are well positioned to host battery storage systems, creating an additional revenue stream and strengthening the state’s energy infrastructure.

New Jersey’s industrial sector has always played a critical role in supporting economic growth. Now, it is becoming an important part of the state’s energy future.

As New Jersey works to expand in-state power generation and address rising energy costs, one of the most immediate and scalable solutions is already in place — on the rooftops of industrial and logistics buildings across the state. We need to take advantage of these opportunities now.

David Greek is chair of Circulate NJ and managing partner of Greek Real Estate Partners.

The opinions expressed in this op-ed are those of the author and do not necessarily reflect the views of ROI-NJ.