AMPYR Distributed Energy Powers the Warehousing Sector’s Shift to Onsite Renewables and Sustainability

Miles Thomas, Chief Commercial Officer at AMPYR Distributed Energy (ADE), shares insights into the logistics sector’s sustainability journey and explains why onsite renewable energy generation presents a compelling solution for warehouses aiming to reduce emissions and energy costs.

The UK Warehousing Association (UKWA) highlights that sustainability is becoming a key focus for businesses in the sector, with companies adopting eco-friendly practices like smart technologies, recycled materials, and water conservation. However, only 5% of UK warehouses have solar panels, despite having the potential for over 15GW of distributed generation. The high perceived cost of renewable energy systems and financial pressures such as rising energy prices, rents, and interest rates are major barriers.

Additionally, the leasehold ownership structure of most warehouses complicates investment in fixed assets like solar panels. While the financial and environmental benefits of onsite solar are clear, businesses hesitate due to upfront costs. Finding solutions that work for both tenants and property owners will be crucial in accelerating the sector’s adoption of renewable energy.

Breaking Down Barriers with Smart Solutions

At ADE, the company works with a wide range of customers in the warehousing and logistics sector to help them harness the benefits of onsite renewable energy generation. For example, a recent project for Parfetts Cash & Carry in Birmingham enabled the business to reduce its reliance on mains electricity by switching to onsite renewable energy.

Many businesses worry about initial investment costs, site suitability, and potential risks, but ADE offers a robust solution. Through innovative Power Purchase Agreements (PPAs), ADE covers the initial investment and sells the generated energy to the customer at a fixed, cost-effective price. This eliminates upfront costs and maintenance charges, making renewable energy technologies accessible and affordable.

ADE’s PPAs also include battery storage solutions, enabling warehouses to expand their solar arrays beyond typical energy demand and store surplus energy for overnight use. This helps manage inconsistent generation, minimize energy costs, and reduce carbon emissions further.

This approach allows businesses to allocate their capital to commercial growth strategies, saving money, cutting carbon emissions, and aligning with regulations—all with zero upfront costs.

Navigating Leasehold Complexities

While PPAs make onsite renewables accessible, tenants often ask if they can install solar panels on leasehold properties. The answer is yes, with the landlord’s consent, which is typically granted as solar enhances property value and sustainability.

Tenant consent requires two key documents: a Licence to Alter for modifications and a Licence to Underlet for maintenance access. These outline responsibilities for ownership, insurance, and maintenance. Lease agreements must also consider factors like renewals and property sales. While this process is familiar to experienced developers, it may not be suitable for all situations.

Overcoming Risks and Accelerating Adoption

Many businesses perceive onsite generation as too challenging, particularly due to concerns about grid connections, capacity, returns, pricing, and liabilities. However, these misconceptions are hindering progress in the industry.

In reality, distributed generation models are well-established globally. ADE is investing over £300 million in renewable energy projects across the UK and Europe, aiming to simplify access to onsite renewables and eliminate adoption barriers.

Businesses can access the required expertise and funding to implement the right renewable energy system, with no upfront costs. Understanding that companies don’t want renewable installations to become a liability, ADE handles all aspects, relieving businesses of the burden. This makes the solution particularly attractive to the warehousing and logistics sector.