As commercial real estate evolves to meet sustainability goals, rooftop solar systems are becoming a key solution for property owners and tenants alike. With the increasing demand for energy efficiency and the push toward decarbonization, rooftop solar solutions offer significant environmental, economic, and strategic benefits for the real estate sector.
New report Harnessing Your Rooftop: A Guide to Photovoltaic Projects in Commercial Buildings in CEE, released today by CBRE and CMS, provides an analysis of the opportunities and challenges associated with rooftop solar installations across the CEE region. It offers practical guidance on developing photovoltaic (PV) projects, addressing regulatory and financial considerations, and highlights the benefits of integrating solar energy solutions into commercial real estate. In addition to examining trends in energy efficiency and decarbonization, the report includes country-by-country reviews, analyzing energy structures, solar capacity, and incentives specific to each CEE jurisdiction.
“Although the green agenda seems to have taken a back seat in 2024 due to disappointing industrial performance and political upheaval in Europe and overseas, the long-term trend of green transition in energy remains important. There is a clear tendency in CEE to move away from fossils and incorporate renewables in the electricity mix driven not only by sustainability but also by geopolitical imperatives. Looking at electricity generation in CEE countries, however, it is clear that there is still a long way to go. In the region, fossil-fuel sources still take up the lion’s share of the energy mix. This is particularly the case in Poland, where almost 80% of electricity comes from solid fossil fuels, natural gases, and oil products – despite the massive efforts made in previous years. Nuclear energy plays a vital role in Slovakia and in Hungary, also hydro is important in many countries, but solar capacities are expanding the most dynamically everywhere,” stated Gábor Borbély, Director, Head of Research, CEE & Hungary, CBRE.
“For property owners, installing solar systems can help improve energy efficiency, reduce reliance on the grid, and mitigate the risks associated with rising energy costs. The integration of renewable energy sources such as rooftop solar is also becoming a valuable selling point for tenants who are increasingly seeking sustainable, energy-efficient spaces,” said Lukas Hejduk, Partner, Head of CEE Real Estate Practice, CMS.
However, while the potential of rooftop solar is clear, integrating such solutions into commercial real estate comes with its challenges. The high upfront costs of installation, regulatory complexities, and the technical suitability of roofs can make it a daunting task for property owners and investors. “The solar solutions’ growth is creating a myriad of opportunities for commercial property owners to harness solar energy, reduce operational costs, and contribute to environmental sustainability. However, navigating the financial and regulatory landscape, including understanding incentives, securing financing, and ensuring compliance with zoning laws, can be a daunting task,” added Hejduk. “On a practical level, developing a PV project is indeed quite a complex undertaking.”
Despite these challenges, the region is witnessing strong growth in solar energy production, driven by both EU and national policies aimed at accelerating the green transition. As of 2024, Poland added over 8,000 GWh of solar capacity annually, while Hungary surpassed the EU average in solar energy production.
“Although the green agenda seems to have taken a back seat in 2024 due to disappointing industrial performance and political upheaval in Europe and overseas, the long-term trend of green transition in energy remains important,” said Borbély. “There is a clear tendency in CEE to move away from fossils and incorporate renewables in the electricity mix driven not only by sustainability but also by geopolitical imperatives.”
With rooftop solar presenting a unique opportunity for commercial real estate, property owners and investors who navigate the challenges effectively can capitalize on both financial and environmental benefits. As governments prioritize the expansion of renewable energy and as tenants increasingly demand sustainable spaces, rooftop solar systems are set to become a cornerstone of the CEE commercial real estate sector.
Photovoltaic growing fast in Poland
Poland mostly relies on conventional energy sources such as fossil fuels (coal, oil and natural gas), which constitute 79% of the national energy mix. Nuclear energy is not available. Renewable energy sources cover 21% of Polish energy production, of which 1.7% is hydropower and 7% is solar. Other renewables, accounting for 13.5%, are mostly made up of biogas and biofuel. The Polish share of renewable in the energy mix is therefore slightly below the EU average of 22%.
Solar photovoltaic electricity generation has increased significantly over the last decade. In August 2024, it reached 19.7 GW (a 28% annual increase) and the photovoltaic capacity was ca. 500 W per capita, the third highest in the CEE region. The share of PV electricity in the total renewable energy pile is 62%. Poland has declared an increase in the share of renewable energy sources in final energy consumption. However, by 2033 Poland also wants to open its first nuclear unit, aiming for six units in the future. Due to growing ecological awareness, the demand for solutions that reduce greenhouse gas emissions is growing. This mainly affects commercial and private markets. The market, including real estate, must therefore adapt to the needs of customers.
The challenge for Poland is a relatively quick energy transformation. In 2023, Poland witnessed a 1% decrease in household energy consumption. At the same time, the domestic supply of primary energy is also decreasing. This is mainly due to the recorded decline in the mining of fossil energy raw materials, although the development of renewable energy sources is accelerating.
Harnessing Your Rooftop: A Guide to Photovoltaic Projects in Commercial Buildings in CEE