PROFITS

REAP THE

THAN FREE

BETTER

BREAKFAST

Smarter Energy for Smaller Hotels

Select service hotels in REAP zones are ideal for Combined Heat and Power (CHP) and solar carports. The hotel can cut energy costs, create a new revenue stream with the solar carport and generous government incentives that significantly boost profitability.

Reduce Energy Costs: CHP and solar carports can cut energy costs by 50% or more, especially when combined. Already implemented at Hyatt and Marriott select-service hotels, these systems deliver on-site power and significant savings for smaller properties.

Maximize Solar Carport Revenue: Each solar carport space can generate 5,000 kWh yearly, saving $2,000—or up to $6,000 with premium covered parking.

Ensure Resilient, Reliable Power: CHP and solar carports keep the lights on during hurricanes and outages, even through Category 4 storms — ensuring guests are never left in the dark.

Lower Your Investment Requirement: USDA REAP Grants cover up to 50% of solar carport costs and 25% for CHP. Combined with the ITC and Bonus/MACRS Depreciation, incentives can fund 70%+ of your system.

THIS

OPPORTUNITY

IS YOUR

Government Pays and You Profit

Select service hotels typically derive about 90% of their revenue from room sales, leaving limited opportunity to diversify income streams. Solar carports change that.

Beyond generating significant electricity savings, they create a premium guest experience by offering preferred parking—shaded in summer, protected from rain and snow in winter. Business travelers, in particular, are willing to pay for this convenience, often expensing it back to their companies.

With REAP, the Investment Tax Credit, and Bonus Depreciation, up to 80% of the system cost can be covered by federal incentives—effectively letting the U.S. government build this new revenue stream.

The result is remarkable: carports can pay back in under a year. In Colorado, for example, one parking space offsets about $600 in electricity annually, but when preferred parking revenue is added, the value of that space can exceed $4,000.

RETURNS

HIGHER

SELECT SERVICE

CHP Business Impact Scenario

Galveston, Texas

For a 100-room,75,000 square-foot hotel paired with a 50-space,8,000 sf solar carport, investing in Combined Heat & Power (CHP) and solar carport systems can cut energy costs by 35% or more. Beyond the immediate savings, these upgrades significantly enhance property value, with potential asset increases of up to $3 million, while also demonstrating a visible commitment to sustainability that appeals to guests and investors alike.

Climate Zone

All-In Price per Kilowatt Hour (KwH)

Price of Natural Gas (MCF)

Net Operating Income Increase

Combined Heat and Power

Solar Carport

CHP+Solar Carport

Hot-Humid

$0.13

$9.78

$36,093

$255,033

$267,027

View Scenarios

JUST TAKE THE

MONEY

Federal Incentives Make it Easier

Federal incentives can cover 60–80% of Combined Heat & Power (CHP) and solar carport costs, drastically lowering upfront investment. With such support, energy savings often translate into payback periods of under a year, making these systems an exceptionally cost-effective way to boost resilience and cut operating expenses.

USDA REAP Grants: Hotels in REAP zones can receive up to 50% funding for solar carports and 25% for Combined Heat & Power (CHP) systems, dramatically reducing upfront costs and making clean energy upgrades more accessible.

Investment Tax Credits (ITC): The federal ITC provides a 30% tax credit for eligible commercial renewable projects—like solar carports (CHP systems are not included)—for projects starting by July 2026 or in service by December 2027.

Bonus Depreciation: Hotel owners can now deduct 100% of CHP and solar carport costs in the first year thanks to restored bonus depreciation for property placed in service between January 20, 2025, and January 1, 2030.

Is Your Hotel Eligible for REAP?

REWARD

ALL

NO
RISK

Hedging for Select Service Portfolios

For hotels where CHP or solar carports may not deliver a strong return on investment, hedging offers another proven, capital-free way to reduce energy costs by 10-20%. It’s an essential strategy for properties looking to manage expenses and avoid price volatility without major infrastructure changes.

We support hotels in deregulated markets by securing electricity and natural gas contracts with North America’s largest utilities, ensuring highly competitive rates and terms tailored to their operational needs.

To qualify for energy hedging, a hotel or portfolio should use at least 1,700,000 kWh (125,000+ SF) or 200,000 therms of natural gas annually. Meeting these minimums allows us to negotiate better rates and terms with major suppliers, helping reduce volatility and improve savings.

How Will CHP Impact Your Business Performance?

Simply fill out some basic information and we will create a customized CHP Business Impact Scenario at no cost to you.

That's better than a free breakfast!

CHP Business Impact Scenarios use current energy data to make projections and exclude financing and incentives to estimate the Internal Rate of Return and Ten-Year Value. These figures are preliminary estimates, with more accurate projections to be determined by the Combined Heat & Power Primary Energy Accelerator.