Solar Solutions For Property Owners

Working with property owners to utilise the footprint of their property portfolio with solar energy

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Harnessing Solar Energy For Your UK Property Portfolio

Maximising the potential of your property portfolio through solar energy is a strategic move in the competitive landscape of industrial and commercial property ownership and management. Amid the complexities of tenant management, relationship maintenance, property occupancy, lease renewals, and the ever-evolving terrain of environmental regulatory compliance, this industry faces constant challenges.

We at Shawton Energy understand the current demands on property portfolios to enhance competitiveness, provide added value to tenants, explore new revenue avenues, and meet the growing expectations for improved net-zero carbon credentials.

In response to these industry needs, Shawton Energy presents Shawton Solar Property Solutions (SSPS), a tailored product designed to support property portfolio owners seeking to harness the solar potential within their estates.

So, what does our offering entail?

Cost savings for your tenants

Income generation to you as the owner of the property

Increased property value

Improved EPC ratings for your property

Delivering on yours and your tenant’s CSR, ESG and Environmental objectives

Getting ahead of legislative changes

There are 3 options for you to consider;

Energy Cost & Carbon Savings – If you are currently paying for the energy that comes to your property’s site and then you pass that cost on to your tenant then why not allow us to invest in solar onto your property and allow you to buy the energy from that solar for a much reduced cost? You will be able to pass some or all of that financial saving and 100% carbon saving onto your tenants to ensure they are receiving cheaper electricity and a reduction in carbon to help them achieve their environmental objectives.
Increased Lease value – If your tenant is paying their electricity bills direct to their energy supplier then, through the energy cost savings, you can increase lease costs to your tenants by less than their energy cost saving. The customer will see a decrease in their overall costs and you will secure better terms on your lease income.
Export Potential – Typically we will size the solar project to your tenant’s requirements to give best value and payback on the projects. However if we can secure export onto the grid by the local network operator then we can potentially oversize the project, subject to tenant demand and roof size, and monetise any excess energy.

Increasing Property Values

Many UK business owners are interested in the advantages of solar power but worry about its impact on property values. Fortunately, solar power can actually enhance property value by up to 5%.

In today’s eco-conscious environment, renewable energy is essential for business sustainability. Responsible business practices now play a significant role in boosting property value. Solar power, which generates clean and sustainable electricity, stands out as a key investment opportunity for commercial property owners.

Several factors make solar power an attractive addition to commercial properties. Below are the top reasons:

Financial Resilience

Installing solar panels on commercial properties can lead to substantial electricity cost reductions, enhancing financial stability. Lower operating expenses and predictable cash flow make properties more attractive to potential buyers, offering long-term financial benefits.

Competitive Edge

In a crowded commercial real estate market, properties with solar installations are appealing to tenants who aim to reduce their environmental impact and operate sustainably. This advantage is particularly strong among businesses committed to environmental values and responsible practices.

Boosting Property Resale Value

Solar panels significantly increase a property’s resale value. Studies show that solar-powered buildings often command 10-30% higher premiums compared to non-solar properties. This increase is due to the property’s green credentials and improved EPC rating, lower operating costs, and reduced carbon footprint.

Enhancing Property Appeal

Beyond providing clean energy, solar panels add a contemporary aesthetic to commercial properties. Their sleek, modern design enhances curb appeal, attracting potential tenants and buyers.

Positive Commercial Reputation

Integrating solar power into commercial properties demonstrates a commitment to sustainability and environmental responsibility. This commitment positively influences tenants, investors, and the broader community, boosting the property’s reputation and appeal to a wider range of stakeholders.

Virtual power purchase agreements for solar PV solutions

Investing in solar power is not just a financial decision; it’s an investment in the future. By adopting solar technology, property owners reduce their environmental impact, lower operating costs, and increase asset value. As solar energy continues to gain traction, its benefits for commercial property will grow, making it a prudent choice for forward-thinking business owners. Harnessing solar energy not only elevates property value but also supports a greener future and a more sustainable financial foundation.

There are also a number of value added benefits to adding solar to your properties

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Increased Property Value

Solar Panels can enhance the overall value of a commercial property. Many businesses and tenants are becoming increasingly environmentally conscious, and having a sustainable energy source like solar power can make a property more attractive and valuable.

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Environmental Responsibility

Adopting solar power aligns with sustainability goals and demonstrates a commitment to environmental responsibility. This can be a positive marketing point for the property, appealing to tenants who prioritise green practices.

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Corporate Social Responsibility (CSR)

Many businesses are incorporating CSR into their operations. By installing solar panels, a commercial landlord can contribute to the reduction of carbon emissions and showcase their commitment to social and environmental responsibility.

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Long-Term Stability

Solar panels have a long lifespan and require relatively low maintenance. By investing in solar, commercial landlords can secure a stable and predictable energy/revenue source for the property over the long term.

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Legislative Compliance

Solar with positively impact your property’s current EPC rating. Also, there may be future regulations or requirements mandating the use of renewable energy sources in commercial properties. Installing solar panels can help landlords stay ahead of potential regulatory changes and ensure compliance with evolving environmental standards.

Why Shawton Energy?

Various funding models

Dependent on how you want to fund the project we can either undertake the works and you fund the project as a capital outlay and we do the ongoing operation and maintenance or Shawton Energy can invest in the project ensuring there is no upfront capital needed and receiving a fully managed, fully delivered project for your energy needs.

Access to the best technical and cost-effective equipment

Through our global procurement capability and working with the best manufacturers you’re ensured the best equipment at the most competitive cost.

Long-term energy partner

With contracts between 10 and 25 years we want to be your long term energy partner of choice.

Expertise

Tap into the expertise to ensure the technical journey is completely managed on your behalf in co-ordination with your property teams.

Reporting

Have full transparency on how the assets are performing through state-of-the-art digital dashboards.

Customer Service

Industry leading customer service to ensure billing/payments are accurate and efficient.

Case Study

Shawton Energy worked with CBREIM, the landlord for HSL Chairs, to support their tenant’s net zero ambitions and develop a solar solution at their Leeds Distribution Centre.

We worked with HSL’s landlord, CBREIM, to understand the requirements of both themselves and HSL, ensuring we delivered a solution that delivered on both parties’ objectives. A true collaboration between three engaged businesses, the project – based in Leeds – was designed to deliver long-term renewable energy for HSL and a happy and stable tenant for CBREIM.

THE PROCESS

We sat down with CBREIM to understand what the drivers were for this project, for both themselves and their tenant. We understood they wanted to protect their customer from the rising costs of energy – going a long way to achieving their tenant’s net zero ambitions and, ultimately, increasing the attractiveness of their property. We analysed the current energy usage and the physical site requirements to design a system that ensured that HSL had minimal excess energy to export – allowing them to use as much of the renewable energy they generated as possible. It was also important to them that their day-to-day operations were not impacted

THE RESULT

In just over three weeks, we installed a 125kWP system that is now providing HSL with 115,678kWh of energy annually, 40% of their annual electricity requirement, all whiledisruption to their day-to-day site operations was kept to a minimum. This means that HSL are avoiding over 34 tonnes of carbon annually, providing a boost to their net zero targets. The installation has also allowed CBREIM to provide their tenants with an enhanced site and will mean secured tenancy for years to come. Shawton Energy will continue to work with HSL and CBREIM by ensuring the project’s ongoing effective operation – providing an annual maintenance service. This will ensure that the propertyretains a valuable asset for both the current tenant and future tenants for years to come.

“Working within the travel and tourism sector provides both a responsibility and an opportunity to be a catalyst for change within the industry. We try our best inside the hotel to be as sustainable as possible, so it makes sense to try our best on the outside with the installation of the new solar-panelled roof. We are very excited about our future aspirations to become more sustainable. This is simply the beginning of our efforts to pave a new dawn within the sector across Scotland and beyond.”

Simon Benson, Head of Estates, HSL Ltd

3

Weeks Installation Time

34,697

kg Of Carbon Saved Annually

115,678

kWh Annual Energy Generation

126.15

kWp Array Output

Minimum Energy Efficiency Standards (MEES)

From 1st April 2023, all leased non-domestic properties in England and Wales must now comply with the Minimum Energy Efficiency Standards (MEES) Regulations 2018, meaning that the property must be rated as E or above on its Energy Performance Certificate (EPC) for the lease to be lawful.

The Minimum Energy Efficiency Standards were introduced in 2018 in order to improve the energy efficiency of the built environment, which is responsible for around 18% of UK greenhouse gas emissions according to 2019 data from the UK government’s Department for Business, Energy and Industrial Strategy (BEIS).

Power purchase agreements for solar PV solutions

Since 2018, these regulations have only applied to new non-domestic rental agreements and lease extensions, however this has now been extended to cover all existing leases, including properties that are currently occupied.

To raise the EPC score, landlords are encouraged to implement energy efficiency improvement measures, such as those provided in their current EPC Recommendation Report.

Landlords who are in breach of the regulations (i.e. currently renting out a property with an EPC rating of F or G) must take steps to ensure their property meets the required standard, otherwise they could face a financial penalty. These penalties can rise as high as £150,000 (or 20% of the rateable value of the property – whichever is higher), depending on the length of time the landlord has been in breach of the regulations.

There are certain types of property which are exempt from MEES regulations, such as;

Short lettings of 6 months or less;
Lettings of 99 years or more;
Properties which do not require an EPC
- E.g. Certain listed buildings (where energy efficiency improvements would unacceptably alter their character or appearance), temporary buildings, buildings used for worship, or buildings that are to be demolished.

Implementing solar energy directly impacts a building’s Energy Performance Certificate (EPC) rating by improving its energy efficiency and reducing carbon emissions. When solar panels are installed, they generate renewable electricity on-site, reducing the building’s reliance on fossil-fuel-based grid power. This not only lowers energy costs but also decreases the building’s carbon footprint, both of which are key factors in EPC assessments.

As a result, the building’s EPC rating improves, often moving it into a more favourable category. For large commercial properties, a better EPC rating can enhance the building’s market appeal, comply with stricter regulations, and increase overall asset value, making solar an investment that delivers both environmental and financial benefits.

Who are Shawton Energy?

We are a renewable technology provider with the experience and expertise to plan, design, install and maintain a solar panel system that perfectly complements those who have a property portfolio.

Through a joint venture with Lazard Asset Management we are able to fund new and existing projects, typically between a 10- 25 year partnership, through a Power Purchase Agreement (PPA). This allows our customers to exploit the value of solar energy but without the Opex and Capex constraints.

We have a large portfolio of projects throughout the UK enabling us to deliver high quality, safe and cost effective projects that produce 100% renewable energy at a price that is less than what you’d buy off the grid.

Who are Lazard?

Lazard are a global investment house and bank and are 50% equity owners of Shawton Energy. Established in 1848 they are publicly traded on the NY Stock Exchange and mange $239 billion of client assets.

Working collaboratively with Shawton Energy, they want to invest £250m into renewable projects across the UK in the next 3-5 years as well as a further £1 billion for large scale renewable projects.