Working on sunshine

UK warehousing has the roof space for up to 15GW of new solar power, which could double the UK’s solar capacity, cut carbon emissions by 2 million tonnes a year, and slice between 40% to 80% off warehousing electricity costs, according to research by the UK Warehousing Association (UKWA).

With the climate crisis and Russia’s invasion of Ukraine highlighting the urgent need for clean energy and security of supply, fitting solar panels to warehouse rooftops appears to make sense, particularly in an industry transitioning from diesel to electrified fleets and increasing its use of electric forklifts and robotics.

So why are so few warehouses kitted out with rooftop solar panels in the UK? The UKWA research shows that just 5% of warehouses currently have solar panels, most of which only cover 10% to 25% of the available space.

UKWA points to the distribution network operators (DNOs) as the largest fly in the ointment – these regional, privatised entities are responsible for connecting homes and businesses to the grid.

With high energy prices and an urgent need for renewable resources, why are so few UK warehouses fitted with rooftop solar panels? Carol Millett investigates

The association does not pull its punches, describing DNOs as “extortionate and highly ineffective monopolist gatekeepers that are preventing businesses from investing in energy generation and connecting to the energy grid – controlling who can get access to the electricity grid, when, and at what cost”.

Clare Bottle, UKWA chief executive, adds: “We need a fundamental rethink of the way in which DNOs hold power over access to the grid, how they get renewable schemes connected to the grid, and the prices they charge.”

UKWA is not alone in its concerns. Last month, the Environmental Audit Committee wrote to the govern-

Information management services giant Iron Mountain has 10 on-site solar installations in the UK. Phil Shepley, vice president and UK head of commercial, says ensuring the facilities can adequately support the installation of on-site solar is key.

“For example, we must guarantee the additional weight on the roof can be supported, check that electrical systems are updated to support solar panels, and secure landlord permissions,” he explains.

“In addition to this we have to finalise designs with our insurance company and ensure that the design accounts for connecting to the grid.”

Shepley says the environmental benefits are clear. “In 2022 we generated approximately 919,710kWh of electricity, which is equivalent to approximately 652 tonnes of CO2 avoided emissions in 2022,” he says. “Furthermore, panels offer financial benefits because the solar power generated costs less than the grid, providing instant utility savings.

The company used a PPA to fund the project. “The cost for power is set for the contract term, enabling predictability on utility spend month over month,” says Shepley. “We are currently working to set up electric vehicle charging stations at our buildings that have solar roofs, which further reduces our dependency on the grid and keeps costs low.

“Finally, solar panels offer greater resiliency. If the grid incurs any outages, solar panels will continue to function and supply energy to the warehouses. To support this, we are also currently evaluating on-site battery storage options.”

He explains: “The problem is the vast majority of warehouses are built speculatively by developers who aren’t prepared to invest in something their tenants may not need. So they mostly fit an element of solar to help their BREEAM rating, usually covering office consumption, but not the warehouse.”

Gresty says this is changing, pointing to the rising use of robotics and electric vehicles. This is prompting tenants to demand the fitting of solar panels, and landlords are in turn looking to the likes of ASG.

IN ment criticising the snail-like pace of DNO grid connections. It said: “In some cases, developers are having to wait 10 to 15 years to secure a connection for solar installations.”

Much of the problem lies with a lack of grid capacity, complicated by the DNOs’ inefficient queueing system for connection, clogged up by “zombie” applications that are either defunct or nowhere near ready to go.

To add insult to injury, DNOs can charge developers thousands of pounds towards having the network upgraded, if there is insufficient capacity in their area, before they can be connected.

In its defence, the Energy Networks Association (ENA), which represents DNOs, argues the grid was never designed to handle smaller, scattered solar installations and is struggling to meet soaring demand.

Last year, DNOs received a total of 164GW of new connection requests, which the ENA points out is “an entire grid’s worth of capacity”.

Nonetheless, urged on by regulator Ofgem, it has pledged to ensure faster grid connections, clear the backlog of applications and implement a “first ready, first served” rather than a “first come, first served” system, which National Grid estimates could shorten connection times by two to 10 years for many projects.

However, DNOs are not the only drag factor, says Tony Gresty, MD of ASG Energy Services, which provides solar power to the warehousing sector.

COUNT

Tim Cook, commercial energy consultant at solar panel installer SolarSense, echoes this view: “We’ve seen increasing numbers of commercial landlords looking at deploying solar across their portfolio over the past couple of years, prompted by tenants needing to save on electricity.”

He adds: “Once landlords see how it adds value to their real estate, gives them a revenue stream by selling tenants discounted electricity, and a return on investment of around 10%, it’s win-win all round.”

Then there are those businesses whose clients are demanding their suppliers meet Scope 3 targets on their emissions.

“Particularly firms dealing with big retailers or large PLCs,” says Gresty. “Those clients are asking for their carbon strategy – that’s going to incentivise a lot of operators to use solar to cut their Scope 3 emissions.”

Engineering firm Renishaw has used SolarSense to fit its UK warehousing with rooftop solar panels. Ben Goodare, head of sustainability, admits Renishaw’s first scheme was driven by the need to meet planning requirements. He recalls: “It proved very quickly it’s a great way to save lots of money,” prompting Renishaw to fit solar PV to its entire UK estate.

“I don’t believe we actually have a viable roof in the UK left without solar panels on it,” Goodare adds. “The business is fairly energy intensive, so the panels provide about 15% of our electricity demand – but 15% off our electricity bill is a significant amount of money every year.”

Goodare says solar will also play a key role in the future, helping Renishaw reach net zero and achieve energy independence to protect it from geopolitical events.

Another hurdle is the cost of fitting solar PV. Options range from: capital investment up-front, which allows a business to directly benefit from the savings; leasing