- Equites will achieve the additional capacity through 136 million rands ($7.09 million) in capex in 18 to 36 months.
- The expansion in May reduced the company’s carbon emissions by 30% for the first half of its 2024 financial year.
South African property group Equites has disclosed plans to increase its solar capacity. The Chief Operating Officer of Equites, Riaan Gous, said it is part of the company’s efforts to diversify its revenue. He added that the move could help the firm become more environmentally friendly. Equites will achieve the additional capacity through 136 million rands ($7.09 million) in capex in about 18 to 36 months. Gous said it comes in addition to the 9 megawatts announced in May and will likely reduce the group’s carbon emissions by about 20 per cent.
The additional 8 megawatts in energy combines 14 grid-tied and hybrid solar with battery storage systems. This comes as the real estate investment trust (REIT) tries to grow alternative revenue sources by providing solar-generated power to tenants. The COO said Equites has brought about three-quarters of the 9 megawatts announced in May online. Consequently, this reduced the company’s carbon emissions by 30 per cent for the first half of its 2024 financial year. This comes at a time when companies across industries are aiming to become more environmentally friendly.
According to Gous, the company funds the installation of solar panels on its logistics sites. The installed panels provide power to tenants at a discount to the tariff charged by the state utility. It also gives tenants the option to install batteries at their own cost. “It (solar-related power generation) will be an important alternative source of revenue, and it’s something which we will be focusing on in the coming years to ensure that we increase that over time as well.”
The logistics-focused REIT’s total solar installed capacity more than doubled over the six months ended August 31. This is compared with the same period a year ago. On Tuesday, the group announced the distribution of 65.37 cents per share for its half-year ended August 31, down from 81.58 cents a year earlier.