Extra Space Storage is honored to be featured in Nareit’s 2023 REIT Industry ESG Report, reflecting our commitment to a sustainable future and an innovative approach to energy.
Nareit’s annual industry ESG report showcases the innovative programs that REITs have implemented to address environmental, social, and governance (ESG) challenges. Self-storage plays a significant role in the real estate landscape, representing 7% of the total REIT equity market cap by sector. At Extra Space Storage, as the largest self storage company in the U.S., we recognize our impact and are committed to leading sustainability efforts that uplift the entire industry.
Extra Space Storage Solar and Energy Efficiency Programs
Our journey with solar energy began in 2010 with a pilot program. While the environmental advantages of solar were evident, it was essential for us to evaluate the financial implications. Our strategy was to roll out solar in states with tax incentives and credits, and later expand into regions with high electricity costs. The result? A comprehensive solar program that today has installations on over half of our wholly-owned properties. Steve Potter, Sr. Facilities Project Manager, has been with Extra Space for four years and plays a crucial role by overseeing the enormous job of construction for all Extra Space solar projects.
“With half of the properties in our wholly-owned portfolio powered by the sun, we’ve produced the solar renewable energy equivalent of over 30 million pounds of coal burned,” shared McKall Morris, Sr. Manager of Communications and Sustainability at Extra Space.
Our commitment to solar doesn’t end there. With around 75 new solar installations annually and an investment of roughly $20 million each year, we are continually expanding our solar footprint. Notably, advancements in solar technology have enabled us to enhance properties previously deemed financially unsuitable for such installations. We’re especially excited about our community solar projects in New Jersey and New Mexico, aimed at supporting low- and middle-income communities by making electricity more affordable.
Besides our passion for solar, our overall approach to energy consumption has us actively upgrading HVAC systems, integrating LED lighting, and converting older and inefficient buildings into updated state-of-the-art storage facilities. We’ve also increased our energy reporting processes with a newly dedicated team member focused on utility data collection.
At Extra Space, we firmly believe that investments in solar and energy efficiency benefit not just the environment but our employees, shareholders, and the communities we’re part of. We’re committed to championing a sustainable future and are delighted to be featured in Nareit’s 2023 ESG Report.
View the full Extra Space Storage case study on page 52 of the Nareit 2023 REIT Industry ESG Report or learn more about our sustainability efforts on our Investor Relations page.