Two Blues Solar has introduced the growth of its funding capability within the UK by means of a three way partnership settlement with US renewable-focused personal fairness agency True Green Capital Management. The funding offers Two Blues Solar the capability to fund and deploy as much as 300 on-site photo voltaic initiatives to energy-intensive companies over the subsequent 5 years. At no price to clients, Two Blues Solar may save UK enterprise as much as £260 million in vitality prices over 25 years.
Almost half of UK companies are making ready for price will increase within the subsequent 12 months and 72% undertaking excessive vitality costs will negatively have an effect on their income within the subsequent two years. While wholesale vitality costs have fallen since file highs in 2022, this solely displays a part of the broader vitality spending for companies. Notably, nearly half of a enterprise’s vitality invoice goes to finance non-commodity prices, together with many prices for grid upgrades. The UK Government’s dedication to a completely decarbonised electrical energy system by 2035 requires important funding in grid infrastructure, estimated at £170bn to £210bn, with UK companies paying most of that price. Forecasts present that costs won’t return to pre-crisis ranges earlier than 2030, suggesting that top vitality prices will stay an ongoing concern for UK companies.
Solar is among the least expensive types of renewable vitality, however solely accounted for five% of the UK’s whole vitality manufacturing final 12 months. There are lots of of 1000’s of sq. meters of unused industrial rooftop area appropriate for photo voltaic vitality technology within the UK. The occupants of those buildings are lacking a chance to cut back their vitality prices and scale back carbon emissions.
“It’s simple to recommend that photo voltaic needs to be a part of each enterprise technique to beat the long-term rise in vitality costs and meet the trade’s web zero targets,” defined Daniel Levene, co-founder of Two Blues. Solar, “But that assertion fails to contemplate. the fact of the scenario for a lot of energy-intensive companies. Prices are rising throughout the board, and companies have a number of priorities competing for his or her capital and time; many can not put money into on-site energy technology. We goal to assist them obtain that.”
Two Blues Solar was constructed to handle this downside and allow companies to change to photo voltaic vitality freed from cost. The firm installs photo voltaic panels on industrial area on the roof or adjoining land, promoting vitality to the constructing’s occupants at charges as much as 60% decrease than conventional suppliers by means of a Power Purchase Agreement (PPA). The price of a photo voltaic set up undertaking for the Two Blues is upwards of £200,000; these are the initiatives that conventional financing often reductions as too small or inconsistent with their strict funding standards. However, Two Blues Solar gives a versatile answer that serves a variety of enterprise varieties and sizes, together with tenants with brief leases and landlords with numerous and complicated property portfolios.
By putting in photo voltaic panels on a 2,500 sqm roof – a medium-sized manufacturing unit or warehouse – the occupants can acquire about 320,000kWh / 12 months. The common occupier will use round 80% of that, saving round £864,000 in vitality prices and 1.8 kilotons of carbon over the lifetime of a typical PPA contract, based mostly on present common costs.
The set up course of, together with securing the mandatory permits, will be accomplished inside twenty-six weeks, after which Two Blues Solar retains possession of the panels and has full accountability for the continuing upkeep, permitting companies to profit instantly from decreased vitality prices. .
