Langley Mill, Derbyshire

NGRE is a UK logistics asset owner and Toray Advanced Composites is an industry leader in developing and producing advanced materials for satellite and space exploration programs.

Longevity Power arranged for the installation of 885 high efficiency solar panels to provide 16% of the building’s annual electricity consumption. During peak production on sunny summer days the utility provides up to 60% of the current electricity consumption, saving the tenant thousands of pounds in electricity costs, and providing additional rental income for the landlord.

Rather than signing a separate Power Purchase Agreement, Longevity Power helped NGRE Logistics to negotiate a green rental enhancement, easing the administrative burden and enhancing the value of the asset.

Project Background

NGRE Logistics was seeking solutions to reduce their Scope 3 emissions and extend the lease of one of their industrial assets in Langley Mill, Derbyshire. They approached Longevity Power, a leading renewable energy advisor and installer, to explore the feasibility of installing a solar PV system on their rooftop.

Challenges

Negotiating a rental enhancement:Longevity Power performed a detailed financial analysis for both the landlord and the occupier, performing a sensitivity analysis to rigorously stress test the business case for both parties allowing them to arrive at a fair rental enhancement.

Maximising Rooftop Space: The primary challenge involved utilising the available rooftop space as efficiently as possible, to accommodate a system large enough to meet the client’s energy demands.

Grid Connection: Ensuring seamless grid connection for the solar system was crucial to the project and involved robust coordination with the local Distribution Network Operator (DNO) to secure the necessary approvals.

Solutions

Detailed Site Survey and Design: Our team conducted a comprehensive site survey to assess the rooftop’s dimensions, orientation, and sun exposure. We then designed a customised solar PV system layout that maximised usable space while adhering to safety regulations.

Seamless Grid Integration: We coordinated extensively with the DNO to obtain the necessary approvals and ensure the system complied with grid interconnection requirements.

Project Implementation: The project was executed  with meticulous planning and adherence to the highest possible safety standards. Our experienced installation team ensured a smooth and efficient installation process, minimising disruption to the client’s operations. At the end of the project, a thermographic analysis was performed to check for any faulty modules, string outages, and inverter anomalies.

Benefits

Significant Cost Savings: The 469 kWp solar PV system is estimated to generate over 420,000 kWh of clean electricity annually, resulting in substantial cost savings on the tenant’s electricity bills.

Reduced Carbon Emissions: By generating clean solar energy, Toray Industries will reduce their carbon footprint by 1,100 tonnes over the lifetime of the PV system.

Increased Energy Independence: The solar PV system provides the tenant with greater energy independence, hedging against volatile electricity prices and ensuring a more predictable energy budget.

Enhanced Asset Value: The solar PV system provides NGRE Logistics with a satisfied tenant with an extended lease. Furthermore, in opting for a rental enhancement as opposed to a separate PPA contract, the asset value has been enhanced by over £1 million, based on the prevailing market cap rates.