A 4MW rooftop solar project – spread across more than 70 different store locations – is on the verge of completion and will represent what could be the country’s biggest rooftop solar power purchase agreement.
The rollout of rooftop solar by Upstream Energy, on behalf of Beacon Lighting, Australia’s biggest specialist lighting retailer, is already delivering savings on electricity bills of 20-25 per cent, and up to 35 per cent in some stores in particularly sunny areas.
The project – one of Australia’s most ambitious rooftop solar installations – has been led by Upstream Solar, which has supplied the capital, done the installations in conjunction with Beacon Solar, negotiated with the landlords and organised the PPAs to sell the solar output to the Beacon Lighting tenants.
Beacon Lighting needed pay no money for the installation, but the company is reaping average savings of around 25 per cent on its electricity bill – up to 35 per cent in some locations.
So content is it that it has now made rooftop solar installations mandatory for every new store – it rolls out about two each year – and executive chairman Ian Robinson is urging other large format retail chains to do the same.
Getting the landlords across the line was the biggest challenge. Mostly it was about education, what it meant for their rooftops (very little in most cases), and the attraction of renting our roof-space on top of the building as well as the shops and offices inside
The sealer is the prospect that the landlords will assume ownership once the average 12-year PPAs are concluded. That will give them an extra asset, and an extra attraction for new lessees.
“We install the installation, we monitor it, we maintain it, and the incentive for the landlord is that it gets the asset at the completion of the PPA, and ends up with a more sustainable building. And they get a bargaining tool for future (lease) agreements.”
Begley says he expects other chains to follow, and is being supported by Robinson who is also chair of the Large Format Retail Association.
“We consider that to be the next phase – moving across the commercial space with similar projects and PPA,” Begley says.
Then it will also look at the creation of localised micro-grids, using the roof space, installing solar and storage, and allowing a micro-grid with trading. “That will be the future,” Begley says.
In the meantime, there are also opportunities in the smaller scale 5MW to 10MW solar farms that can be installed easily on the grid, and can then be used to write PPAs with various customers. It will be a lot easier than negotiating with 70 or so different landlords.
Giles Parkinson is founder and editor of One Step Off The Grid, and also edits and founded Renew Economy and The Driven. He has been a journalist for 35 years and is a former business and deputy editor of the Australian Financial Review.
This post was published on October 19, 2017 11:39 am
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Wow. This could the start of something very big. Has anyone estimated how much energy could be generated from all the roofs of all the large format retail stores in Australia? What is that sound I hear ... could it be the sound of the death spiral speeding up?
IIRC (someone please help here), the largest energy users per square foot/meter are RESTAURANTS. Depending on locale, much of this could be made electric:
* lighting, air-conditioning, registers, signage = all electric anyway;
* refrigeration and (frequently walk-in) freezers = all electric;
* deep-fat-fryers (french fries, etc.) = mostly electric for safety (oil burns);
* sheet steel short-order grill surfaces = probably gas but could be electric;
* burners = gas and probably can't NOT be gas.
I'd be interested in how many Kw/h per day a McDonald's uses, and whether a rooftop array (given their store sizes) could get anywhere close to that wattage. I suspect not. BUT: They typically have decently sized parking lots, and a carport-style solar roof might make that convenient for customers not wanting their cars to be hot, etc.
McDonald's is based on Oakbrook, IL. Can someone reach out to them and post this idea?