Turning the giant roofs of big box warehouses into the clean energy plants of the future

From large energy buyers making commitments to purchasing carbon free energy, to the UK government’s targets to expand to at least 70GW by 2035 - it’s clear we need more solar PV capacity.

As we covered in our recent blog post, the built environment presents a significant opportunity. The generation opportunity is greatest with the special asset class of big box warehouses - those that are 100,000 square feet and above. 

When tapping into the potential of big box warehouses, the key is to up-size solar installations to fully utilise their giant roofs. But with just 5% of the overall UK warehouses segment having adopted solar at all, it’s clear there are substantial hurdles to overcome. 

Why aren’t big box warehouses fully utilising solar?

A key contributor is their unique energy profile: while very large, their on-site energy consumption is relatively low. When fully utilised with rooftop solar, a big box warehouse’s on-site demand usually requires only one-third of its generation capacity, leaving two-thirds available for export.

Power design: A fully utilised big box roof can generate over 10 MW of power. However, on-site power equipment such as transformers were not selected for this capacity, and are often power rated too low to handle it safely. Transformer upgrades and modifications to other power equipment such as switchgear are subject to supply shortages and long lead times. 

Grid connections and export tariffs: Months or years-long DNO permitting queues and limitations severely restrict exporting excess generation. Upgrading substations to handle additional export is often cost-prohibitive. Even if energy can be exported, grid-offered tariffs fluctuate greatly and owners don't have revenue certainty from future unknowns like tenant voids.

Misaligned incentives: During the pre-construction phase, consultants often charge  £25,000 or more per building for months-long feasibility studies that recommend right-sizing to avoid grid issues. Offsetting all of these expensive steps requires a high on-site tenant tariff for financial viability. Tenants push back, and this critical alignment dead-ends. 

Cracking big box warehouses with a paradigm shift

A paradigm shift is required to fully utilise these big box warehouses: Toward a streamlined energy procurement process that reduces costs and connects exported energy to large energy buyers through a distributed energy network.

Aggregate: Large energy buyers like data centres (DCs) want reliable, cost-effective renewable energy at scale. Aggregating the excess generation from 10 big box warehouses can create a 50 MW block of power at a single point of access. This gives the buyer the same experience as a utility grade option, unlocking a new alternative energy asset class. 

Forecast and de-risk: DCs purchase power with a reliable production profile, without exposure to consumption risk like from fluctuations of an on-site tenant’s demand. To make aggregated excess energy a viable option, usage of AI presents a unique alternative to isolation via separate physical meters. Advanced forecasting of generation and demand can be leveraged to create physical or virtual PV system separations that deliver an expected power profile.

Managed energy network: To deliver this aggregated, de-risked energy to DCs, big box warehouses can’t be siloed power plants. They must be part of a managed, distributed energy network which automates, stores, and optimises energy distribution; administers downstream billing, settlement, and reconciliation; and provides transparent access to generation time and location data for matching. 

Operational efficiency: AI-based automation is instrumental in streamlining this process for cost reduction. Remote feasibility studies powered by generation and financial models, automated grid & procurement processes, and optimised energy distribution drive down costs. Coupled with guaranteed export tariffs via energy networks, competitive on-site tenant tariffs facilitate deal closure.

A new way forward for big box warehouses

The warehousing segment has the potential to generate up to 25GW of solar power - a significant portion lies in big box warehouses. The paradigm shift of streamlined energy procurement through aggregated, de-risked distributed energy networks holds the key to unleashing it. 

InRange is creating a new energy asset class from the built environment, unlocking new revenue streams for landlords and saving energy costs for tenants. The InRange platform provides guaranteed 10-year fixed export tariffs, with AI-powered matching of surplus energy to data centre and other in-network building demand through the InRange Marketplace. 

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