Long-standing North East Automotive Alliance members, Komatsu UK Ltd and AR Power have teamed up on a project which will help the Birtley-based manufacturer reduce their reliance on energy from the grid and their CO2 emissions.
Komatsu UK Ltd have already taken significant steps to reduce their carbon output and installing an effective rooftop solar PV system is a further commitment towards their sustainability journey.
They reached out to commercial solar installers, AR Power based in Washington, to provide a quote to design and install a system. Initially the team at Komatsu were looking at Power Purchase Agreement model where an investor would cover the cost of the system and sell energy back to them at a reduced cost, however AR Power presented a much more attractive option, asset finance.
Once the team at Komatsu had seen the cash-positive figures for an asset finance payment model, it was clear that the asset finance scheme would provide greater savings on their energy bills over the next 25 years rather than using a PPA model. They would also own the system after all payments have been made to the finance company.
The in-house team at AR Power designed a 1.76 MWp system consisting of 3,912 panels which is estimated to generate 1,641,862 kWh of energy for the machinery manufacturer per year. This system will significantly reduce their carbon footprint, saving 8,752,569 kg of CO2e each year, contributing substantially to their carbon reduction initiatives.
The state-of-the-art SolarEdge Technologies system meets all RC62 fire safety recommendations and includes a firefighter gateway to isolate the system if the emergency services are called out, ARC detection at the inverters, and ensuring that the panels switch to extra low voltage when the AC supply is disconnected to keep everyone working on or near the system safe.
Pre-project planning involved comprehensive risk assessments and coordination throughout with AR Power’s in-house Health, Safety & Environmental Manager, Project Manager, and the wider operations team. This thorough planning ensures that everyone on-site remains safe, and Komatsu’s day-to-day operations experience minimal disruption. AR Power are dedicated to upholding the highest standards of CDM compliance, ensuring that all health and safety regulations are strictly followed throughout the project lifecycle.
Paul Blanchard, Managing Director at Komatsu UK Ltd and NEAA Energy Board Member said “Komatsu UK have been considering the installation of a rooftop PV system over a number of years but it was not until the collaboration with AR Power and the potential of the asset finance model was explored could the justification for the project be achieved. The additional benefit with working with AR Power is that they are a local business, which supports manufacturing in the North East.”
Paul Butler, Chief Executive Officer at the North East Automotive Alliance said “It’s fantastic to see NEAA members Komatsu and AR Power collaborating on this sustainability project. This exemplifies the true spirit of the NEAA – fostering partnerships and driving innovation within the North East automotive sector.”
Stephen Armstrong, Head of Commercial at AR Power said “The NEAA has been a key supporter of AR Power for several years, providing valuable opportunities to showcase our expertise to its members. Through their annual expos and promotion on their marketing platforms, we have strengthened our presence in the industry. Our membership in the NEAA has played a significant role in fostering connections, particularly with the esteemed team at Komatsu. We are privileged to collaborate with such a renowned global company. This is also very exciting for AR Power, as on completion it will be our largest commercial rooftop install to date.”
The installation started early January 2025 and is estimated to be completed by June.
If you would like to explore installing solar for your company or would like to know how much you could save on your energy bills and carbon output over the next 25 years, please get in touch with AR Power today.
