Industrial leader goes all-in on solar

12:47 pm today

Solar panels on a roof.

Photo: Supplied

New Zealand's largest industrial landlord, Calder Stewart, plans to spend $110 million turning the rooftops of its buildings into solar power stations, in a move aimed at lowering electricity costs for tenants and creating a new energy revenue stream.

The company intends to install up to 170,000 solar panels across its national portfolio over the next decade.

At full rollout, the system is expected to generate enough electricity each year to power between 15,000 and 20,000 homes.

Director Sam Stewart says industrial rooftops have long been an underused asset, despite their scale and proximity to large energy users.

"We build these buildings and the roof is sitting there unused," he says.

"The opportunity is to turn that into a productive asset."

Sam Stewart.

Photo: Supplied

The solar programme is aimed at large industrial occupiers, including manufacturers and logistics firms, where power is a significant operating cost.

Stewart says the model offers two key advantages: cheaper electricity and longer-term price certainty.

Tenants will continue to buy power through their existing retailers, but a portion will be supplied directly from rooftop solar at a lower cost.

Calder Stewart is also offering power pricing arrangements of more than a decade in length - longer than typical electricity contracts - giving businesses greater certainty over one of their core expenses.

The company says generating electricity onsite can also reduce reliance on the national grid, avoiding some transmission costs and energy losses that are normally built into power bills.

Over time, Calder Stewart plans to add battery storage to many of its sites, allowing solar energy generated during the day to be stored and used during peak demand periods in the morning and evening.

Solar panels on a roof.

Photo: Supplied

Stewart says energy costs are becoming an increasingly important factor in leasing decisions, particularly for large industrial occupiers operating in competitive domestic and export markets.

He says more commercial and industrial property owners need to consider onsite generation as part of their long-term strategy.

"Property as an industry has spent decades assuming it can just connect to the grid and get the power it needs," he says.

"That may still be possible, but businesses should not assume they will be paying the same price forever."

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