Solar energy is increasingly becoming a key component of a company’s sustainability strategy. Komatsu UK, a leading manufacturer of construction and mining equipment, has taken a significant step towards reducing its environmental impact by partnering with solar installation company AR Power to implement a 1.76 MWp solar photovoltaic (PV) system at its manufacturing facility in Birtley.
Benefits of Solar Energy
- Reduces reliance on grid electricity and decreases carbon emissions
- Generates an estimated 1.6 million kWh of electricity annually
- Decreases Komatsu’s carbon footprint by an estimated 8.75 million kg each year
Key Features of the Solar PV Installation
| System Details | 3,912 solar panels |
| Annual Energy Production | 1.6 million kWh |
| Estimated Carbon Emissions Reduction | 8.75 million kg |
Alignment with Sustainability Goals
Komatsu’s partnership with AR Power aligns with the company’s global sustainability goals and contributes to the region’s push for more renewable energy sources.
Asset Finance Solution
Komatsu chose an asset finance model over a Power Purchase Agreement (PPA) due to the higher return on investment and anticipated payback period of around seven years.
Benefits of Asset Finance
- Higher return on investment
- Anticipated payback period of around seven years
- Ownership of the solar PV system after the completion of the finance term
Quote from Paul Blanchard, Managing Director at Komatsu UK
Paul Blanchard, managing director at Komatsu UK, said: “Partnering with AR Power, a local company, has been key in helping us move forward with our sustainability strategy. “We’ve been exploring solar energy for some time, but it wasn’t until we worked with AR Power that we could make this project a reality. “Their asset finance solution allowed us to make this significant investment in clean energy, while supporting a North East business that shares our values of environmental responsibility and regional economic growth.”
Quote from Stephen Armstrong, Head of Commercial at AR Power
Stephen Armstrong, head of commercial at AR Power, said: “This project is a great example of how North East businesses can collaborate to create sustainable solutions for the region. “We’re proud to be working with Komatsu, a company that has a long history of innovation and quality, to help them reduce their carbon footprint and make significant savings on energy costs. “This commercial solar panel installation is the largest rooftop project we’ve undertaken and highlights the growing demand for renewable energy solutions in the region’s industrial sector.”
Installation Process
The installation process began at the beginning of the year and is expected to be completed by July 2025.
Conclusion
Komatsu’s investment in solar energy supports its ongoing operations at the Birtley site, where the company manufactures and supplies equipment for industries including construction and mining.
