IMPACT interview: Solving the complex solar-power puzzle for asset owners
VerusSol founding partner, Joost Leendertse, on how generating your own green electricity solves a major problem in the market and can provide real financial gains. Interview by Richard Betts.
What are you seeing as the key priorities in the market at the moment?
When we talk to investors and building owners, decarbonisation and retaining asset values are two of the key issues which are high on the agenda. This is also true for the companies that lease the buildings, as they are looking to meet their own corporate sustainability goals. This means a big focus on green energy.
If your building generates its own solar energy, then it can play a significant role in extending the resilience of the building and also create financial and non-financial value.
What is your mission? What is the aim of VerusSol?
We see our mission as empowering the green strategy of investors and building owners to reduce their carbon footprint and help bring properties towards net-zero energy performance. Our aim is to maximise the direct consumption of renewable energy generated by the building itself and support the ESG performance for all the stakeholders, finding the sweet spot where there is a win-win for all.
Why is it important that the building generates its own power?
A building that generates its own renewable electricity has net-zero emissions for electricity consumption. This means that it will always be resilient to regulation, volatile energy markets and is nicely aligned in terms of both satisfaction and the future demands of occupiers. Generating your own green electricity also provides tangible financial gains for the key stakeholders.
‘If your building generates its own solar energy, then it can play a significant role in extending the resilience of the building.’
Joost Leendertse, VerusSol
As a building owner, you will always earn back your investment and benefit from higher rental income and a more resilient, valuable asset. The occupier benefits from a reduction in day-to-day operating expenses because it gives them fixed-priced renewable energy as part of an upgraded rental agreement. Importantly, the asset owner still maintains full control over the building.
How does this work in terms of the various regulatory frameworks across Europe?
This is a very complex area but we create tailored solutions to ensure it is fully compliant with the regulatory frameworks in all countries. Our clients are some of the largest global logistic investors and so it is important that it works across the whole of Europe.
We take care of the entire process, from development to management of the renewable electricity business throughout its lifecycle. In cooperation with the building owner, we develop the optimal solution for each building. As well as the different geographies, we also ensure the solution works for all the various fund structures, including the listed sector, as well as all investment horizons.
Where is the sweet spot in terms of renewable energy pricing and rent?
Our approach is to create a valuable partnership between the building owner and the occupier throughout the term of the lease. We provide the indirectly generated value of the solar energy system to the occupier in a way that allows the building owner to charge a higher rental income.
After extensive analysis, we have isolated a sweet spot between electricity pricing and the cost price of the solar energy system. When the pricing is in the sweet spot, it provides a win-win for the owner and occupier and this helps ensure the buy-in of all parties involved. Everyone has a positive outcome, and the biggest winner is the environment.
