4 steps to incorporating solar in your MEES strategy

If you’re here, you know that MEES (the Minimum Energy Efficiency Standards) have implemented regulations that impact all commercial landlords, requiring an EPC rating of E by April 2023, a C by April 2027, and B by April 2030. Since non-compliance can mean lease termination, the stakes are high.

You may be considering the right investment to improve your buildings’ rating, from the straightforward of upgrading lighting systems to the complex of installing Building Management Systems. Installing solar has the potential to have an outsized impact both on your rating, as well as added revenue and tenant benefits.

Here are 4 steps you can take to find if solar is the right investment:

1. Assess your building’s potential

You can get an assessment of your building’s potential energy generation based on attributes of your roof such as size, orientation, and obstructions. An optimised PV layout can be created, accounting for tradeoffs between the cost of equipment vs. energy generation potential.

This can be done by a solar vendor performing an on-site visit and a manual PV design, or by a vendor that performs a remote and automated assessment. For portfolios, a remote assessment of many buildings that hones in on the best potentials may be a better fit.

2. Incorporate your building’s demand

A building’s on-site demand is a big component of solar feasibility. For a tenant that utilises energy primarily during daytime, the benefits are clear. For those with a different demand curve, inclusion of a battery can help shift the generation to match non-daylight demand.

It’s important to also consider future demand projections, such as an increase from installation of EV chargers, or a decrease in case of a lapse in tenancy. Your solar vendor can help to work with your tenant in getting their half-hourly demand data to identify their profile.

3. Find the balance between generation and demand

Given steps 1 and 2, an analysis can be made for solar sizing. It should account for:

1. The price the on-site tenant will pay for the generated energy.
2. The cost of installation and hardware.
3. Matching of annual half-hourly solar generation to demand.
4. The desired return on investment (IRR, payback period, yield on cost).

A major component in a solar-sizing decision is what will be done with excess energy generation not consumed by the on-site tenant. This strategy can have an outsized impact on the financials of the installation, and is dependent on:

1. The desire to incorporate a battery, or expectation of future demand growth.
2. Availability of grid network capacity at the supply point near the site.
3. Whether you’ll sell the excess directly to the grid, or work with a solar vendor that can sell it at a premium above grid prices.

Your solar vendor can bring these factors together and provide a set of recommendations for installation sizing.

4. Understand the EPC rating impact of the installation

Depending on your chosen vendor and these criteria, you can get good or even outstanding returns on your solar investment. But what about your EPC rating?? A building may get up to 15 additional SAP points with an on-site solar system, which can translate to a rating increase of one or two grades. By working with an accredited assessor, facilitated by your solar vendor, the exact impact of your planned installation can be evaluated.

Now that we’ve covered the 4 steps to evaluating solar in your MEES strategy, we’re here to get you started. With a remote, free assessment of your portfolio, we’ll analyse your buildings’ potential and demand, match the excess to our network of energy buyers, and recommend a solar rollout plan that will meet your needs. Contact us to get started!