By Gabe Phillips

By Gabe Phillips

he self-storage industry has always been about maximizing the value of space. While operators focus on optimizing their rentable square footage, many are overlooking significant revenue opportunities right above their heads and across their properties. At Catalyst Power, we’ve worked with numerous self-storage facility owners and operators to help them transform their facilities into modern clean energy hubs. From rooftop solar to EV charging stations, self-storage facilities are uniquely positioned to capitalize on the growing demand for energy while creating new revenue streams and serving their communities.

The energy landscape is transforming rapidly. U.S. electricity demand could rise 128 GW over the next five years, driven primarily by AI, data centers, and manufacturing growth. The country hasn’t seen that level of growth since the 1980s. Another factor driving demand is the growth of electric vehicles. EV adoption continues to accelerate, with U.S. EV sales growing by hitting a record 1.3 million in 2024, while charging infrastructure struggles to keep pace.

This surging demand is creating a premium market for space that can generate or support energy infrastructure. Self-storage facilities, with their large, unobstructed rooftops and often underutilized land parcels, represent prime real estate in this emerging marketplace.

Self-storage operators have two primary options for capitalizing on their energy potential: direct ownership or space leasing. Each approach offers distinct advantages and considerations.

1. Direct ownership allows facilities to generate their own electricity, potentially eliminating their power bills while selling excess generation back to the grid. This approach provides maximum long-term return on investment but requires more substantial upfront capital and ongoing management responsibility.
2. Space leasing offers a simpler path with minimal upfront investment. Under this model, facility owners lease their roof space or land to energy developers who handle all aspects of installation, maintenance, and operations. This generates steady, predictable income for 15 to 30 years while avoiding the upfront costs of development and operational responsibilities. For many self-storage operators, this “hands-off” approach aligns perfectly with their core business focus while unlocking new value from their existing assets.

Not every self-storage facility is ideal for energy development. Key considerations include roof age and condition, structural capacity, shading from nearby buildings or trees, and local utility interconnection requirements. However, many of the characteristics that make locations attractive for self-storage, like large unobstructed roofs and proximity to population centers, also make them excellent candidates for energy infrastructure.

Many modern self-storage facilities feature extensive flat roof areas with minimal mechanical equipment, making them particularly attractive to developers. While structural limitations may exist, many facilities can accommodate solar installations with minimal modifications.

For facility owners interested in exploring their energy potential, the first step is understanding their options. This typically involves:

• Evaluating your facility’s physical characteristics and electrical infrastructure,
• Reviewing local utility policies and interconnection capacity,
• Consulting with service providers about both ownership and leasing options, and
• Assessing financial implications under different scenarios.

While revenue generation drives most energy decisions, the benefits extend beyond direct financial returns. Energy installations can enhance a facility’s environmental credentials, potentially attracting environmentally conscious customers and improving community relations. Some operators have successfully marketed their clean energy commitments as part of broader sustainability initiatives. For example, my company always issues a local press release to highlight our partner’s environmental credentials, which can generate positive local media coverage.

Additionally, solar installations can provide ancillary benefits like roof protection and reduced heat load on upper-level units. These operational advantages complement the direct financial benefits of energy asset deployment.

Many self-storage facilities have additional untapped energy potential beyond their rooftops. Unused land parcels, buffer zones, and even parking areas can be ideal locations for ground-mounted energy systems. At Catalyst Power, we’ve helped facilities transform these underutilized spaces into additional revenue sources. We recently worked with a self-storage facility in Massachusetts that added both rooftop and ground-mounted solar at the same facility.

Ground-mounted systems offer several unique advantages:

• Optimal orientation for maximum production,
• Easier maintenance access compared to rooftop systems,
• Potential for dual use as covered parking or storage areas,
• Scalability to match available space, and
• No rooftop structural considerations to navigate.

For facilities with available land, ground-mounted systems can complement rooftop installations or serve as standalone projects. Some operators have found creative ways to integrate ground-mounted energy infrastructure with their facility expansion plans, reserving space for future building development while generating immediate revenue from energy production.

While solar offers the most immediate revenue potential, self-storage facilities are uniquely positioned to capitalize on other energy opportunities. EV charging stations can transform parking areas into additional revenue streams while attracting new customers, which is particularly valuable given that storage facilities are often near residential areas and major roads.

Battery storage systems represent another potential option, with utility companies increasingly willing to pay premium rates for grid-supporting storage capacity. U.S. battery storage capacity is projected to grow six-fold by 2028. As the electric grid modernizes to handle more intermittent renewable energy, the value of strategically located storage facilities is on the rise, driving up the value of hosting energy storage.

At Catalyst Power, we’ve seen increasing interest in these “energy hub” approaches where facilities combine multiple technologies to maximize both their energy potential and revenue opportunities. The economics of these integrated approaches can be particularly compelling for forward-thinking facility owners.

The self-storage industry’s evolution continues as operators seek new ways to maximize asset value. Energy infrastructure represents a natural extension of this trend, offering a way to generate value from previously unutilized space. The fundamental value proposition—turning unused roof and land space into revenue—will remain compelling as energy demand continues its upward trajectory. According to the Self Storage Association, the industry encompasses over two billion square feet of space across more than 50,000 facilities in the U.S., representing a massive untapped potential for energy generation.

For facility owners considering energy options, the key is to start the evaluation process now. Whether through direct ownership or space leasing, understanding your options positions you to make informed decisions about your facility’s future.

The energy opportunity for self-storage facilities isn’t just about adding new revenue streams—it’s about optimizing total asset value in an increasingly competitive market. Just as the industry has innovated in storage solutions, adopting energy technologies represents another way forward-thinking operators can stay ahead of the curve.

At Catalyst Power, we’ve seen firsthand how self-storage operators who embrace these opportunities are positioning themselves for long-term success, creating multiple revenue streams while contributing to a more sustainable future. The time to capitalize on these opportunities is now.