Electron Green has announced a strategic partnership with Knight Frank Investment Management (KFIM).
The collaboration aims to revolutionise the commercial solar landscape by delivering cost-effective solar electricity to commercial tenants.
The divide between landlords and tenants concerning FRI (full repair and insurance) leases and contract lengths has hindered the widespread adoption of solar energy in the commercial sector.
Less than 1 per cent of commercial rooves in the UK are currently equipped with solar panels, despite the impending need for over 80 per cent of commercial properties to undergo energy-related modifications within the next decade to adhere to forthcoming energy regulations.
KFIM, boasting a portfolio worth around £4bn in the UK and internationally, has taken note of the urgent climate crisis and the crucial role it can play alongside Electron Green in leading the industry towards a more sustainable and environmentally-friendly trajectory.
By partnering with Electron Green, KFIM is taking a proactive stance to tackle the solar dilemma.
The prevailing issue of solar installation costs and benefits distribution will be addressed by KFIM covering the expenses of solar photovoltaic systems and collaborating with Electron Green to oversee the comprehensive solar program, including negotiations with tenants.
As the UK’s energy regulations tighten, with non-residential properties required to attain an EPC rating of at least C by 2027, properties that fail to meet these standards face the risk of decreased demand and value.
This is due to environmentally-conscious businesses seeking eco-friendly premises and the financial benefits that accompany them.
The partnership allows KFIM to ensure EPC compliance while offering commercial tenants access to affordable and sustainable solar energy without the burden of installation and maintenance costs.
Oliver Donaldson, senior investment manager at KFIM, emphasised the partnership’s alignment with their sustainability goals, stating that ‘tenants will benefit from clean and low-cost electricity without the upfront capital investment’
Electron Green’s chief executive, Daniel Green, underscored the pivotal moment the commercial property sector is at, stressing the importance of taking action to avoid unlettable properties.
He highlighted the nascent utilisation of solar electricity in commercial property, with only one per cent of rooftops effectively harnessed for energy generation.
With ambitious corporate and national net-zero objectives, this figure falls far short of expectations.
This strategic partnership signals a substantial shift towards sustainable and green business practices.
As KFIM and Electron Green collaborate to transform the commercial solar landscape, they aim to drive both environmental benefits and economic savings for businesses across Europe.
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