Projects  /  Tennant Station
Case study · LED Lighting

Tennant Station

NRG Incentives partnered with Terra Commercial Management on a high-efficiency LED retrofit at Tennant Station in Morgan Hill, CA — brighter, safer exterior and common-area lighting with meaningful energy savings and zero out of pocket.

Tennant Station
Tennant StationLED retrofit · shopping center
$57,506
annual energy savings
$4,792.13
monthly savings
2.75 yrs
payback period
$0
out-of-pocket cost
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The challenge

Tennant Station, a shopping center in Morgan Hill, CA managed by Terra Commercial Management, ran aging lighting across its exterior and common areas — costly to power and maintain, and a safety and curb-appeal concern for tenants and shoppers after dark.

The solution

NRG Incentives modernized 422 fixtures across exterior and common-area zones, backed by a 10-year LED fixture warranty. A $17,000 utility rebate reduced the net cost to $158,068, delivered with zero out of pocket to ownership.

The results

The retrofit delivers $57,505.59 in annual energy savings — about $4,792.13 a month — recovering the $158,067.85 net investment in roughly 2.75 years, then compounding into net savings. Brighter, even light improves safety and the property's presence across the center.

Return on investment — net cash position over 10 years
Break-even 2.75 yrs
+$416,988
$400k$200k$0
Yr 0Yr 2Yr 4Yr 6Yr 8Yr 10
Additional financial impact

What the upgrade is worth to the asset

Two of the levers an upgrade like this moves — value created and interest avoided. Adjust the rates to match your underwriting.

Added property value
$1,045,556$958,426$884,701$821,508$766,741$718,820
a one-time lift to the property's value at a 5.5%6%6.5%7%7.5%8% cap rate — capitalizing $57,506/yr in energy savings.
Cap rate
0% financing — interest you avoid
$12,645$14,226$15,491$15,807$17,387$18,968
in interest avoided each year at 8%9%9.8%10%11%12% — on the $158,068 project cost, financed at 0%.
Interest rate