GLP To Invest $82 Million In Commercial Solar Power Systems

Global Logistic Properties Limited (GLP) has announced it will install solar panels on the rooftops of 22 its properties in Japan.

Electricity generated by the systems, enough to supply the power needs of 5,300 households, will be sold to utility companies under Japan’s solar feed in tariff program. Under the initiative, GLP will receive JPY40 (AUD$0.43) per kilowatt hour over a 20-year period.

The company says its US$82 million investment will generate a leveraged Internal Rate of Return (IRR) of approximately 17% and create a new revenue stream for GLP.

The commercial solar power systems will be installed on 305,000 square meters of rooftop and will have a collective capacity of 29.6MW. The company says Yingli Green Energy Holding Company Limited is expected to supply the solar panels.

Global Logistic Properties Limited owns, manages and leases out 505 completed properties in 205 logistics parks spread across 60 cities and states in China, Japan and Brazil.

In Australia, commercial solar power uptake is still in its infancy; but with rising electricity costs continuing to put pressure on the bottom line of companies, it won’t be long before the residential rooftop solar revolution is echoed in the commercial sector.

According to Australian solar provider Energy Matters; only 200m2 of free roof space in good condition, unimpeded and unshaded; with preferably a northerly aspect is needed to provide a significant benefit.

“If you are paying more than 20c/kWh for your daytime electricity usage, a system sized to your daytime load will provide a payback time of between 5 and 7 years – after which time, the electricity you generate is essentially free,” says the company’s commercial solar arm.

Energy Matters has executed a number of commercial scale projects for clients including Ullrich Aluminium, Australia Post, The Big Strawberry, Melbourne Water, Coles, Victoria University, RMIT and the University of Southern Queensland.