Office building powered by the sun

Demand for solar energy is growing among New Zealand businesses looking to reduce electricity costs and demonstrate a commitment to sustainability.

Commercial property company Argosy Property Limited invested in a 60kW solar array to help power its office building at 105 Carlton Gore Road in Grafton, Auckland.

This case study details Argosy’s decision to purchase the solar panels outright, and how the business is benefitting from the investment.

Project summary

Company:	Argosy Property Limited
Project:	Outright purchase of rooftop solar
Site region:	Auckland
Hardware:	60kW solar array

Argosy installed solar to enhance the building's environmental performance and achieve a higher Green Star rating. The 60kW system generates approximately 90,000 kilowatt-hours (kWh) of clean electricity a year, reducing the building’s reliance on the grid and decreasing electricity costs by 10%.

The solar array generates around 30% of the base building’s energy use, with a peak contribution in summer of 35%. This supports the building's heating, ventilation, and air conditioning (HVAC) system, hot water supply, and electric vehicle charging.

Argosy’s solar achievements

90,000 kWh
energy produced each year
7 yrs
payback period
9.6 t
carbon emissions avoided each year
10 %
reduction in electricity costs

The benefits of solar

For tenants:

By generating clean energy on-site, Argosy is helping to create a more sustainable and environmentally friendly building for its tenants.
Argosy can offer discounted electricity rates for common areas compared to the grid price, providing tangible financial benefits to tenants.

For shareholders:

Argosy says the investment in solar energy demonstrates a commitment to responsible and future-focused property management.
By reducing operating costs and enhancing the building’s environmental credentials, the solar array contributes to the long-term value of the property.

For the environment:

The solar array is estimated to abate 9.6 tonnes of carbon dioxide emissions each year, helping to reduce the building’s carbon footprint and contribute to a cleaner energy future.

Solar energy reduces our reliance on grid-supplied electricity, especially during peak daylight hours. This not only helps us contribute to a more sustainable future but also provides greater energy independence.

Nathan Herbert, Argosy Environmental Engineer

Outright purchase vs PPA

Outright purchase gives you full ownership of the solar system and all the energy it generates.

With a power purchase agreement (PPA), a third party owns the system while you pay for the electricity generated, typically at a lower rate than grid prices.

Both methods have distinct advantages, and the choice between them depends on your business’s long-term energy strategy, financial goals and risk tolerance.

Read Sudima Hotels PPA case study

Why purchasing solar outright was the best option for Argosy

An outright purchase involves the business buying the systems itself, either through direct payment or financing options. This approach provides the customer with full ownership of the system, including the benefits of the electricity cost savings. However, it can require a significant initial investment and the assumption of maintenance responsibilities.

Argosy’s environmental, social and governance (ESG) team considered various options, including a power purchase agreement (PPA), before deciding to purchase the solar array outright. This approach ensures long-term ownership and control over the energy generated. The decision to prioritise outright ownership aligns with Argosy’s model of complete ownership of its properties. Once the payback period is over, it gives the business the ability to have complete freedom over pricing electricity to the tenant.

Outright ownership gives us greater control over the array’s operation and maintenance. It positions us for long-term financial benefits once the payback period is reached, and we have more flexibility over energy pricing for tenants.

Saatyesh Bhana, Argosy Head of Sustainability

The sun has not set on Argosy’s solar ambitions

Argosy’s commitment to renewable energy extends beyond the 105 Carlton Gore Road building. The company is actively pursuing solar installations on other commercial properties within its portfolio. An industrial development project at 224 Neilson Street, Onehunga will feature a larger solar array to accommodate electric truck charging and any increases to tenant’s electricity needs.