Across the UK, warehouses, factories and agricultural buildings are sitting beneath thousands of square metres of potentially valuable roof space. As businesses look for new ways to manage rising costs and make better use of their assets, could the answer be right above their heads?
When businesses look for ways to improve profitability, attention usually turns to staffing, suppliers, equipment or the cost of running their premises. The roof rarely gets a mention. Yet for companies occupying large commercial buildings, it could be one of the most underused assets they own.
Drive through almost any industrial estate in Britain and the scale of the opportunity becomes apparent. Vast warehouses, distribution centres and manufacturing facilities stretch across acres of land, many with little more than ventilation equipment and rooflights occupying their rooftops.
These buildings already have a considerable footprint, but while the space beneath them is working hard, much of the area above remains unused.
That is beginning to change, particularly as businesses take a closer look at how they purchase, generate and manage their electricity.
A different way of looking at commercial property
For decades, commercial property has largely been valued for what happens inside it. The amount of warehouse space, production capacity, storage or office accommodation has determined how useful a building is to the business occupying it.
Solar generation introduces another consideration. What if the building itself could contribute towards its running costs?
A large factory roof, for example, may have the capacity to accommodate hundreds of solar panels, producing electricity during the working day when machinery, lighting, ventilation and other equipment are operating.
For a food producer, where refrigeration and processing equipment can account for a substantial proportion of electricity consumption, the opportunity may be particularly attractive. The same applies to agricultural businesses operating grain dryers, poultry housing and other energy-intensive facilities.
The principle is straightforward. Electricity generated and consumed on site is electricity that does not need to be purchased from a supplier. Over the lifetime of an installation, those savings can become substantial.
What makes this particularly interesting is that businesses are not necessarily having to find additional land or fundamentally change their operations. They are simply making better use of space they already occupy.
Could an empty roof become a source of income?
There is another side to the equation that is often overlooked.
Not every business consumes large amounts of electricity throughout the day. Some occupy enormous buildings but have relatively modest energy requirements, leaving the possibility of generating more solar electricity than they can use themselves.
Subject to grid connection arrangements, that surplus electricity can be exported, potentially providing an additional revenue stream.
For property owners, there may also be opportunities to lease suitable rooftop space to solar developers, while power purchase agreements can allow businesses to benefit from solar electricity without necessarily funding the installation themselves.
These options depend on the circumstances of the building, its ownership and the commercial arrangements available. Nevertheless, they raise an interesting question for landlords and business owners alike: could an asset that currently generates no direct return begin contributing financially?
In a commercial property market where every square metre has a value, it seems increasingly difficult to ignore the space above the building.
The businesses thinking about tomorrow, not just today
There is also a longer-term reason why commercial rooftops deserve more attention.
The electricity requirements of many businesses are changing. Manufacturers are investing in new technology, vehicle fleets are gradually moving towards electric alternatives, and businesses are increasingly considering battery storage as part of their energy infrastructure.
A building that meets a company's needs today may face very different electricity demands in five or ten years.
This makes the timing of investment important. A business planning to expand production, install EV charging facilities or replace existing equipment may benefit from considering its future energy requirements alongside the potential for on-site generation.
Solar is not going to remove every business's dependence on the grid, nor will it necessarily provide electricity at the times it is most needed. But when designed around a company's actual consumption and future plans, it can make a valuable contribution.
For some businesses, the question is moving beyond whether solar could reduce this year's electricity bill to what role it might play in the organisation's longer-term financial planning.
Of course, it isn't quite as simple as covering a roof with panels
Not every commercial roof will be suitable, and the largest possible installation is not always the most financially sensible.
The condition and structure of the building, its age, the available roof area and the way electricity is consumed all influence what can realistically be achieved.
There are practical considerations too. Grid connection capacity, the position of existing equipment and the potential need for future roof repairs can all affect a project's viability.
In some cases, combining a solar installation with planned roof refurbishment may make commercial sense. In others, a smaller system designed to maximise electricity consumed on site could deliver a better return than a much larger installation.
This is where the early feasibility work becomes particularly important. Understanding what a building can accommodate is only part of the picture. Understanding what the business actually needs is just as essential.
An opportunity that's been there all along
East Green Energy has been working in the renewable energy sector since 2007, delivering solar installations for commercial, industrial and agricultural businesses across the UK.
During that time, solar technology has advanced considerably, and so has the way businesses approach their energy requirements. What was once largely seen as an environmental investment is now increasingly being considered as part of wider financial and operational planning.
For many organisations, the attraction is no longer simply the ability to generate renewable electricity. It is the opportunity to reduce ongoing expenditure, make better use of existing property and gain greater control over a cost that can be difficult to predict.
And while solar carports, ground-mounted systems and battery storage are creating new opportunities, the conventional commercial rooftop still has an important role to play.
Across Britain's industrial estates, business parks and farms, there are buildings that have stood for decades without their owners giving much thought to the potential value of the space above them.
Perhaps it is time that changed.
East Green Energy works with businesses across the UK to assess the potential of commercial rooftop solar, from initial feasibility and design through to installation and ongoing maintenance. To find out what your building could generate, contact the team at East Green Energy.
