Cost & Savings
Enterprise-grade solar with zero upfront capital—financed entirely through rooms you weren't selling anyway.
How Underperforming Rooms Replace Capital Expenditure
The average U.S. hotel operates at approximately 65% occupancy (Source: Smith Travel Research, STR). This means that in a 100-room hotel, roughly 35 rooms remain unsold every night—these are your underperforming assets.
Traditional solar installations require substantial upfront capital—often $500,000 to $1,500,000 for a commercial hotel system—along with ongoing maintenance costs, performance monitoring, and the risk of equipment failure. htpNRG eliminates all of this.
Instead of cash, htpNRG accepts payment in the form of Electronic Room Vouchers (EVouchers) drawn from your unsold inventory. Here's how it works:
- 01htpNRG pays for everything: Equipment procurement, installation, permits, engineering, and ongoing maintenance for 20 years
- 02You pay with empty rooms: We utilize approximately 5-7% of your total room inventory annually (capped at 7% maximum)
- 03No competing distribution: EVouchers are distributed through unconventional networks that don't compete with your OTA channels, brand reservations, or direct bookings
- 04Only avoidable costs: According to Novogradac's study, only variable/avoidable costs (housekeeping, toiletries, utilities) are considered—not fixed overhead
The result? Your hotel receives a state-of-the-art solar installation worth hundreds of thousands of dollars without spending a single dollar of capital or taking on any debt. The rooms you trade were generating zero revenue anyway—now they're financing your energy independence.
Traditional Solar Financing vs. htpNRG
| Factor | Traditional Solar (Purchase/Loan) | Traditional PPA/Lease | htpNRG Model |
|---|---|---|---|
| Upfront Capital Required | $500K–$1.5M+ | $0 | $0 |
| Debt on Balance Sheet | Yes (loan principal) | No | No |
| Monthly Cash Outlay | Loan payment ($5K–$15K/month) | PPA rate (~$3K–$8K/month) | $0 cash—rooms only |
| Who Keeps Energy Savings | You (after loan payoff) | Split with provider | You keep 100% |
| Maintenance Responsibility | Your responsibility/cost | Provider handles (usually) | htpNRG handles—20 years |
| Performance Monitoring | Your cost | Included | Included |
| Asset Ownership After Term | You own outright | Buyout or renewal | Hotel retains installed system |
| Impact on Hotel Equity | Varies (offset by debt) | Minimal | +$300K–$400K increase |
| Credit/Financial Requirements | Strong credit, financials | Moderate requirements | Minimal—based on occupancy |
Bottom line: Traditional financing models either tie up massive amounts of capital or require sharing your energy savings. htpNRG lets you keep 100% of savings while using an asset (empty rooms) that was generating zero revenue.
Real Numbers: 80-Room Hotel at 65% Occupancy
Hotel Profile
- Total rooms: 80
- Average occupancy: 65%
- Rooms sold nightly: 52 rooms
- Unsold rooms nightly: 28 rooms
- Current energy cost: $8,000/month ($96,000/year) at $0.12/kWh
- Annual kWh consumption: ~800,000 kWh
The htpNRG Agreement
- Solar system size: ~250 kW system (approx. 700 panels)
- Annual solar generation: ~350,000 kWh (covering ~44% of hotel needs)
- EVoucher allocation: 5.6 rooms per night on average (7% of 80 rooms = ~5.6)
- Annual room-nights traded: ~2,044 room-nights/year (5.6 × 365)
- Your cost per room-night: ~$14 (avoidable costs: housekeeping, amenities, utilities)
Annual Cost Breakdown
* But you received a $700,000+ solar installation with ZERO capital outlay and ZERO debt.
The Real Win: Utility Rate Escalation
Utility rates typically increase 3-5% annually. Your room cost remains relatively stable.
Cumulative Savings Over Time (80-Room Example)
| Year | Utility Rate | Annual Energy Cost Avoided | Your Cost (EVouchers) | Net Annual Savings | Cumulative Savings |
|---|---|---|---|---|---|
| 1 | $0.1200 | $42,000 | $28,616 | $13,384 | $13,384 |
| 2 | $0.1248 | $43,680 | $29,191 | $14,489 | $27,873 |
| 3 | $0.1298 | $45,430 | $29,775 | $15,655 | $43,528 |
| 4 | $0.1350 | $47,250 | $30,369 | $16,881 | $60,409 |
| 5 | $0.1404 | $49,140 | $30,976 | $18,164 | $78,573 |
| 6 | $0.1460 | $51,100 | $31,595 | $19,505 | $98,078 |
| 7 | $0.1518 | $53,130 | $32,227 | $20,903 | $118,981 |
| 8 | $0.1579 | $55,265 | $32,871 | $22,394 | $141,375 |
| 9 | $0.1642 | $57,470 | $33,529 | $23,941 | $165,316 |
| 10 | $0.1708 | $59,780 | $34,199 | $25,581 | $190,897 |
Key Takeaway
Over 10 years, this 80-room hotel saves nearly $191,000 in net cash—money that would have gone to the utility company. All while keeping a $700,000+ solar system installed with zero capital outlay, zero debt, and zero maintenance costs.
What Your Hotel Doesn't Pay For
With htpNRG, your hotel avoids every traditional cost associated with solar installation and operation:
NO Installation Costs
- × Solar panel equipment and hardware
- × Inverters, racking, and electrical components
- × Engineering and design work
- × Permits, inspections, and utility interconnection fees
- × Labor and installation contractors
- × Roof reinforcement or modifications (if needed)
Typical cost avoided: $500,000–$1,500,000+
NO Maintenance Costs
- × Panel cleaning and debris removal
- × Component repairs or replacements
- × Inverter servicing (typically needed every 10-15 years)
- × Electrical troubleshooting and diagnostics
- × Warranty claims processing
- × Emergency repair callouts
Typical cost avoided: $15,000–$40,000 over 20 years
NO Monitoring Costs
- × Real-time performance monitoring software
- × Production analytics and reporting
- × Fault detection and alert systems
- × System optimization and diagnostics
- × Annual performance audits
- × Data logging and historical tracking
Typical cost avoided: $2,000–$5,000 annually
NO Insurance or Liability Costs
- × Equipment insurance coverage
- × Additional property insurance premiums
- × Liability coverage for roof-mounted equipment
- × Performance guarantees or bonds
- × Risk of equipment damage or theft
Typical cost avoided: $3,000–$8,000 annually
UNDER PERFORMING ASSETS
An Under Performing - Unsold Room refers to a hotel room that the establishment is unable to sell. In the context of a hotel with an average occupancy rate of approximately 65%, such as the average U.S. hotel, out of 100 rooms, around 35 rooms remain unsold or underperforming each night (Source: Smith Travel Research STR).
Increase Your Hotel's Equity by $300,000–$400,000
htpNRG utilizes approximately 5-7% of the hotel's total inventory to cover the energy costs. The cost to hoteliers is approximately $14* per day per occupied room, translating to around $400 per month or $4,800 annually. This results in a net saving of about $17,000 annually in energy saving with Solar, which the hotelier doesn't have to share with htpNRG.
According to studies by Novogradac & Company LLP, the installation of a commercial solar system can increase a hotel's appraised value by $300,000 to $400,000 or more.
What makes this remarkable:
- Off-balance-sheet financing: This equity increase is NOT considered debt on your financial statements
- Immediate asset value: The solar installation becomes a tangible, income-generating asset tied to your property
- Transferable on sale: If you sell the hotel, the solar system and htpNRG agreement transfer to the new owner
- Appraisal enhancement: Commercial appraisers recognize the value of reduced operating expenses and sustainable infrastructure
Frequently Asked Questions
What's the risk to my hotel?
Minimal. You're not taking on debt, not spending capital, and not responsible for equipment failure or maintenance. htpNRG assumes all installation risk, equipment performance risk, and maintenance risk for the entire 20-year term.
Are there blackout dates when I can't refuse EVoucher bookings?
htpNRG works with you to establish reasonable booking parameters. You maintain control over your peak seasons. The goal is to use rooms that would otherwise remain empty—not to disrupt your revenue management strategy.
What happens if I sell my hotel?
The htpNRG agreement and solar installation transfer to the new owner. This transferability enhances your property's appeal to buyers, as they're acquiring a hotel with locked-in energy savings and no solar debt.
What are 'avoidable costs' for a room?
Avoidable costs are variable expenses incurred only when a room is occupied (housekeeping, toiletries, utilities). Fixed costs are not included. For most hotels, avoidable costs range from $10–$18 per room-night.
Electricity Rate Comparison
With htpNRG Solar
3.8¢
per kWh
Without htpNRG (Grid Only)
12¢
per kWh (U.S. Average)
That's a 68% reduction in electricity costs for the portion of your energy covered by solar.
Source: EIA Report
Calculate Your Potential Savings
Every hotel is different. Find out exactly how much your property could save with a custom htpNRG solar analysis—at no cost and with no obligation.