The Future: Renewables & Commercial Property
Understanding the intricacies of energy sources and rates can be difficult and it is essential that owners and occupiers of commercial property stay informed about the regulatory requirements and opportunities available to help the UK Government reach their ambitious aim to be net zero by 2050, says Commercial Property Solicitor Lucy George.
What should I think about in regard to increasing energy costs as a commercial property owner?
In order to tackle the increase in energy costs, commercial property owners must understand the structure of energy rates to get the best deal. Energy costs are comprised of two main components: the unit rate (price per kilowatt-hour of energy consumed) and the standing charge (a fixed daily fee covering administrative costs). Comparing and negotiating these rates with suppliers can help to find a cost-effective solution.
Whilst implementing energy-efficient technologies, such as LED lighting, smart heating and cooling systems can help to significantly reduce energy consumption, there is increasing focus on renewable energy sources. Renewable energy is predicted to dominate the electricity supply over the next 3 years.
What is the thought on the future of renewable energy?
The International Energy Agency expect renewable output to grow by an average of more than 10% from 2023-2025, led by wind and solar PV supported by the Energy Security Strategy.
An example of a popular renewable energy source is Solar PV, which helps to reduce operational costs and also plays an important role in the accurate budgeting of costs. Solar PV panels can be mounted on both roofs (sloped and flat) as well as on the ground and therefore cause little interference to the day-to-day running of a business.
One of the main advantages of solar PV is that clean energy is provided and with the current climate, not only will this be attractive to potential purchasers and tenants, but could potentially help to increase a property’s value.
Generating renewable energy on-site not only reduces reliance on the grid but can provide opportunities for income generated through feed-in tariffs and the sale of excess energy back to the grid.
How can the energy generated be stored?
The ability to store renewable energy, through battery storage, enables property owners and/or occupiers to take control and plan for their future. The batteries store energy for use at a later time, charging during the day if connected to a solar PV system, or during the night from the grid if demand is low.
Here at mfg Solicitors we can provide advice on the legal requirements for renewable projects to ensure that regulations are adhered to, and your profits are maximised.
We act for both Landowners and Developers on a range of mixed-use development projects, with particular focus on solar and battery storage facilities.
If you are a Landowner or Developer and you require any assistance with a proposed solar or battery project, please do get in touch with our Commercial Property team. Contact Commercial Property Solicitor Lucy George by emailing lucy.george@mfgsolicitors.com or call 01905 610410.
