Distributed solar, the economics are attractive right now
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.
- 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.