Distribution Centres

Distributed solar, the economics are attractive right now

The distribution centre is a specialised commercial building stocked with goods or products that are distributed to resellers and wholesalers. Each distribution centre has unique and intensive energy requirements that include temperature control, lighting and other facilities such as electric forklifts, conveyer systems and refrigeration systems for storing and handling frozen goods.

Large distribution centres often owned by large property groups whose tenants have medium to long-term leases, have tenants pursuing more sustainable businesses and operations and there is a growing demand for more energy efficient buildings.

The very nature of the distribution centre with its large available roof space makes it ideal for a solar system to address the energy concerns of tenants.

For distribution centres solar PV is a significant financial investment that can help lower energy costs, reduce operating expenses, and relieve pressure on cash flow. For example, building owners who install a solar system can earn income by on-selling solar electricity to tenants, whilst building operators enjoy the benefits of lower cost of energy.

With access flexible financing options such as Capex, Chattel Mortgage or a Power Purchase Agreement which remove the barriers for investing in solar, reduce operating costs or create a new income stream- now is the time to leverage the returns on a solar system.

Solar is a sound and practical investment for building owners and operators for the following reasons.

  • Distribution centres have a large roof surface ideal for solar PV installation.
  • Distribution centres mostly operate during daylight hours with a constant load profile, daylight electricity demand can be offset from solar generation, creating significant cost savings.
  • Building owners that invest in solar can create a new income stream selling solar energy to tenants. Tenants can purchase solar energy at a lower cost than grid electricity prices.
  • Tenants may elect to finance a solar installation and enjoy the benefits of lower cost of energy for the term of their lease agreement.
  • Solar offers significant energy and costs savings and helps protect against future increases in electricity costs.
  • Solar helps internal sustainability goals and reduce carbon footprint.
  • Solar is a low-risk strategy to reduce operating costs.