Info
Info
News Article

Savills Energy Calls For Greater Investment In Commercial Rooftop Solar

News

With news that the International Energy Agency (IEA) expects solar to become the biggest single source of energy by 2050, the expectation is that rooftop solar will account for around half of the world's total solar PV installations.

However, Savills Energy's Giles Hanglin is warning that work still needs to be done if the UK is to benefit from this trend and is calling on the Department for Energy and Climate Change (DECC) to outline the next steps in its solar strategy.

Hanglin, who looks after the national coordination of solar rooftop delivery for leading property and energy consultancy Savills Energy, has suggested that three areas need to be progressed if solar PV is to reach its full potential in the UK: grid capacity, property valuations and the impact on leasehold and tenancy agreements.

At a recent briefing with DECC, Hanglin said, "With around 70% of the UK's commercial property being leasehold, this is an area that certainly has to be broached to allow substantial growth in capacity of solar PV on rooftops. Indeed, all of the evidence from our valuers and third parties shows that solar can add significant value to a commercial property. 

"One of the challenges this raises is that average commercial lease lengths are under 10 years, while landlords need to be persuaded to make what is typically a 25-year investment in solar.

"The legal suite of documents for the roof sublease, power purchase agreement (PPA), installation procurement and operation and maintenance (O&M) contract must be right in order to ensure that a property and the agreement around it can be valued with accuracy."

Hanglin went on to outline the benefits to both landlords and tenants looking to invest in rooftop solar.

He said, "When you consider the returns on investment, capital appreciation, improvement in EPC ratings of buildings, as well as improvement in their CSR and green credentials, the opportunities for landlords looking to take on solar PV installations are considerable. There have also been a number of studies showing how solar can add value to a commercial property.

"Alongside the potential electricity cost savings from the discounted solar PV electricity, business tenants will also be able to take advantage of improving their green credentials and CSR. There have been some really positive announcements from top tier retail names of late, in terms of investing in large scale rooftop solar, but there is still plenty to be done."  

Calling on DECC to outline the next steps in its solar strategy, Hanglin said, "We believe commercial rooftop solar will prove to be vital in helping to meet future energy requirements. As such, we welcome the DECC consultation into increasing permitted development under planning up to 1MW in size and also the discussion around plans to allow rooftop solar installations to be transferred between buildings without losing Feed in Tariff (FIT) accreditation. 

"The investment all parties are making at the moment to ensure that rooftop solar works effectively will pay dividends for our long-term energy security and we look forward to working with DECC to overcome potential barriers to success."

Going Green In Lancashire – Hundreds Of Houses Installed With Solar Panels In Ground-breaking Project
Solar Power As Rental Offer Launched By Aggreko
Tandem PV Devices Feel The Heat
TLT Advises Innova Energy On £30m Refinancing Of 57 MW Solar Portfolio
UK'S Largest Battery Ready To Balance The Grid
NextEnergy Capital Acquires Its First Asset In Portugal 17.4MWp Solar PV Project
Ingenious Invests In Electric Vehicle Charging Firm
TLT Advises Santander On 30MW Flagship Battery Storage Project
UK Green Tech Company Myenergi To Double Workforce By 2021
Everoze Creates Skyray To Design And Engineer Great Solar PV Projects
Sonnedix Named ESG Global Solar Power Generation Sector Leader By GRESB
Sharp Launches New 440W Half-cut Cell PV Panel
Analysis Of UK Commercial Roof Space Shows Solar PV Film Can Achieve Net Zero Without Greenfield Sites
SOLARWATT Links With Easy Roof To Provide Building-integrated PV For Better-looking Buildings And Smart EV Charging
FIMER Powers UK Largest Rooftop Solar Project
Greencoat Renewables Announces First Transaction In Nordic Market
Habitat Enerdy Enters Balancing Mechanism With Largest Battery
FRV And Harmony Energy To Develop Second UK Utility Scale Battery Project
Low Carbon Develop UK’s Largest Community-owned Solar Park
Oakapple Renewable Energy Appoint Stuart Gentry To Head Business Development
New Innovation Set To Change Renewable Energy Market
The Smarter E South America Postponed To October 18-20, 2021
Power Roll Trials Solar PV To Power Up Himalayan Villages
Sunstore Solar Launches WattGrid, A New Range Of Turnkey Off-grid Power Systems
×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
×
Logo
×
Register - Step 1

You may choose to subscribe to the Smart Solar Magazine, the Smart Solar Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in:
 
X
Info
X
Info
{taasPodcastNotification} Array
Live Event