South African property group Equites is planning to expand its solar capacity to diversify its revenue streams and enhance its environmental sustainability, according to the company’s Chief Operating Officer, Riaan Gous.
This expansion, requiring an investment of 136 million rand ($7.09 million) over the next 18 to 36 months, is an addition to the 9 megawatts announced in May. It is expected to reduce the company’s carbon emissions by approximately 20%.
The additional 8 megawatts of solar energy will be generated from a combination of 14 grid-tied and hybrid solar systems with battery storage, aiming to provide solar-generated power to tenants.
Equites has already brought about three-quarters of the 9 megawatts announced in May online, leading to a 30% reduction in carbon emissions for the first half of its 2024 financial year. This move aligns with the broader trend of companies across industries striving to improve their environmental sustainability.
Equites funds the installation of solar panels on its logistics sites, offering tenants discounted power compared to state utility tariffs and the option to install batteries at their expense. Gous emphasized that solar power generation will be a significant alternative revenue source for the company, with plans to increase it in the future.
The REIT (real estate investment trust) focused on logistics has more than doubled its total installed solar capacity over the past six months compared to the same period last year.