ABERDEEN STANDARD INVESTMENTS
PV Systems Achieve Internal Rates of Return (IRR) in Excess of 6% Per Building Over the Life of the Plant
“This IRR excluded the predicted cost increases to the cost of electricity meaning the actual figures could be much higher. This has improved the profitability, marketability and resilience of each of these buildings.”
Case Study information
Aberdeen Standard Investments (ASI) is a leading global asset manager dedicated to creating long-term value for its clients. The company takes stewardship and environmental, social and governance (ESG) roles seriously and as part of this ESG strategy asked EVORA Global to undertake a review of assets within two significant managed funds. The purpose of this review was to identify assets that may be suitable for the installation of photovoltaic panels: the technology that converts sunlight to electricity.
EVORA Global’s role was to identify suitable sites, negotiate with occupiers and solicitors, and arrange and project manage the physical installation of PV and metering systems at single-let and multi-let assets.
EVORA Global was provided with a list of assets with the details of the occupier for each asset together with salient asset management information, such as tenure and length of leases.
We created a shortlist of suitable assets, based on building size, and then undertook a desktop study of the roofs to determine potential suitability for the installation of a PV system.
On behalf of ASI we contacted the occupiers of those assets considered suitable to determine if they were interested in having a PV system. The model proposed was that the PV system was installed, owned and operated by ASI. ASI would receive the government feed-in-tariff while the occupier would purchase the electricity generated at a competitive rate.
A legal side letter was agreed covering the installation and maintenance of the PV system meaning that a formal deed of variation was not required for assets, subject to full repair and insuring leases.
Once this detail had all been agreed EVORA Global managed the installation, acting at the CDM Regulations (2015) Principal Designer and project manager.
The project is ongoing and forms part of our wider remit as one of two mechanical, electrical and public health services (MEP) consultants to ASI.
Several sites were identified with PV systems installed achieving internal rates of return (IRR) per building of in excess 6% over the life of the plant. This IRR excluded the predicted cost increases to the cost of electricity meaning the actual figures could be much higher.
This has improved the profitability, marketability and resilience of each of these buildings.