Unlocking a renewable energy strategy
Installing solar on our buildings is a great idea in theory – after all, it immediately reduces operational energy use, lowering bills for the landlord. However, for Mirvac, it’s been a difficult investment to justify. While we love passing on value to our tenants, we needed to find a way to gain some payback to offset the upfront costs. The solution came to light this year: what if Mirvac was to establish a separate business as an energy provider?
The idea quickly gained momentum, and after several intensive months of development we had an entity established: Mirvac Energy.
Mirvac Energy is essentially a new offgrid energy provider.
The idea is that Mirvac Energy pays to install renewable energy systems on our own assets. Then, through a partnership with a preferred supplier, we sell the energy generated back to the building as an offgrid
supplier. In this way, we can offset the initial cost of the solar installation and gain long-term profit from the sale of the energy – as well as capital uplift from leasing roof space.
Orion Springfield central and one darling island
are already on board
We have now commissioned over 1.1 MW solar PV at these assets, giving us a strong starting point to trial Mirvac Energy – with installation due in 2017, this will enable us to achieve one of our strategy commitments one year ahead of time. While it’s unlikely that 100% of the energy required by these buildings will be provided by Mirvac Energy, we certainly believe we can supply a significant portion. Which means greater value for tenants, and a whole new revenue stream for Mirvac. Certainly a huge achievement, and evidence that setting long term goals, like being Net Positive, leads to innovation.