ENERGY IN RETAIL, HOTELS & LEISURE


Solar set to shine in the retail sector


As retail faces rising competition and disruption, businesses are turning to onsite renewables to cut costs and manage energy volatility. Miles Thomas explores the options and how businesses can make informed investment decisions.


Miles Thomas


CEO at AMPYR Distributed Energy (ADE)


www.ampyrde.com A


s a leading funder of rooftop solar, we have already seen major retail centres such as the Metro Centre in


Gateshead and the Merry Hill Centre in Dudley commit to installing rooftop solar to power their communal areas. The investments align with wider environmental and commercial commitments that are transforming the centres into night and day venues with enhanced hospitality and entertainment offerings. Power Purchase Agreements


(PPAs) enable onsite renewables with no upfront costs, plus ongoing maintenance to ensure optimal performance throughout their lifetime. This makes rooftop solar an increasingly attractive option to access cost effective energy whether for communal areas in covered shopping centres or for vast retail spaces such as outdoor, furniture, DIY, superstore, electrical, pet or homeware outlets.


Evolving sector The retail sector is under increasing pressure to innovate to survive, with rising staff and packaging costs increasing pressure on budgets in 2025. The fortunes and ownership of major retail parks have been impacted by COVID and the shift to online shopping, with falling footfall and shuttered shops leading many to rethink their strategies. Yet the latest figures show that they still marginally outperform other retail


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opportunities such as the High Street, with new store openings continuing to rise. However, the Centre for Retail Research reported 34 retail companies with multiple stores ceased trading in 2024, affecting 7,537 stores and 55,914 employees. This was the highest number of stores affected in a calendar year since the Centre for Retail Research has been collating this data in 2007. Ownership of retail centres has


also shifted significantly over recent years, with an increasingly diverse set of landlords ranging from real estate specialists, private equity funds and local councils. The British Retail Consortium


(BRC) has already identified that it has a potential role to play in helping to catalyse PPAs between renters and landlords to help accelerate the adoption of onsite renewables. It has also developed a Retailer/Landlord Net Zero Building Protocol, which offers important advice on making the most of a cooperative relationship to drive energy management improvements. These shifts can be seen at both Metro Centre and Merry Hill, which


The funding and operating models are now proven and should give confidence


are increasing their restaurant and entertainment offers to increase revenues from day to night economies. They are also balancing these


shifts with a focus on environmental enhancements including EV charging powered by solar panel canopies and investment in rooftop solar. Solar car park canopies are already being written into legislation in the EU but are unlikely to be mandated in the UK, so adoption will be worth following to understand the real-world savings achievable.


Opportunity for retail There are some 680 shopping centres in the UK and the signs are that vacancy rates are starting to drop, and investment is underway. The BRC has been working with shopping centres and the High Street to tackle rising energy costs and decarbonisation. It cites the Carbon Trust that has calculated that a 20% cut in energy costs can represent the same bottom-line benefit as a 5% increase in sales. All retail properties have an


associated energy demand, primarily for lighting, space heating and cooling and refrigeration. Responsibility for site operations and energy will depend on building ownership and tenancy agreements, with control lying with the residing retailer, the landlord or specialist site managers. According to the BRC’s Pathway


2 Energy strategy, the vast majority of the sector’s site emissions are


Rooftop solar arrays are helping retail centres cut energy costs without upfront investment through Power Purchase Agreements


from electricity (84%). With available roofspace, solar is an accessible option for many to help reduce energy costs and increase energy resilience. Funding via PPAs is especially


attractive to sites with upwards of 100,000 kWh demand, as it can help to reduce energy costs by between 30-50%. With complex ownership and leasing models a potential barrier, expert guidance combined with PPAs is helping to de-risk the adoption of onsite renewables. Access to renewable energy has an important role to play in ensuring that sustainability goals can be met, as well as reducing energy bills at a time when operational costs are under increasing pressure. Solar projects are now reaching maturity and can be designed and deployed rapidly to deliver benefits within a matter of weeks. As the retail sector continues to


evolve to overcome past challenges and adapt to new realities, the adoption of renewable energy as part of its future makes increasing sense from both a practical and financial point of view. The funding and operating models are now proven and should give confidence. In a market that has become accustomed to change, the opportunity to bring greater energy independence and lower costs supplies to the energy sector can be transformative. ■


EIBI | SEPTEMBER 2025


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