EDITOR ' S CHOICE
SOLAR BY DESIGN AN OPPORTUNITY FOR DEVELOPERS
For smaller property developers, solar can easily be seen as an additional cost alongside the other demands of bringing a development to market. Construction costs, planning, infrastructure, finance and tenant demand will understandably take priority. However, the way solar is incorporated can create opportunities that go beyond simply reducing electricity consumption, and some developers are cashing in.
The key is to consider solar as part of the commercial proposition from the beginning, rather than something added once the build is complete.
Litton Developments provides an interesting example. Working with Geo Green Power, Litton has installed solar PV across 10 commercial buildings in Derbyshire and South Yorkshire, delivering more than 1.1MWpk of combined capacity.
What makes the approach particularly relevant to developers is the model behind these installations. Litton established Litton Energy, an internal energy distribution model through which electricity generated by its solar systems can be sold directly to tenants occupying its properties.
This creates a commercial relationship that benefits both landlord and occupier. Tenants can access electricity at rates well below grid prices, reducing operating costs and providing some protection from fluctuations in energy market. For Litton, the electricity generated by its buildings creates a recurring revenue opportunity, turning the solar
installation into an active commercial asset rather than simply a sustainability investment.
For smaller developers, solar does not necessarily need to be justified solely by the savings it delivers. It can contribute to the attractiveness of a development to prospective occupiers, support its environmental credentials and, depending on the structure of the project, potentially form part of the revenue model.
Factoring in these elements makes the point at which solar is considered particularly important. Designing it into a development from the outset allows roof space, orientation, structural requirements, electrical infrastructure and energy demand to be considered alongside the scheme. It also avoids the limitations of trying to retrofit a system after construction.
Not every development will suit the same approach, and the commercial model will depend on the buildings, occupiers and energy requirements. However, Litton demonstrates that solar can be much more than a technology installed to satisfy a sustainability requirement.
For developers looking at their next retail park, business scheme or other commercial project, incorporating solar at the design stage could create additional value for both the property and the businesses that occupy it. Energy generation can become part of the building’ s commercial design and appeal, rather than an afterthought once construction is finished.
www. geogreenpower. com.
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