Sudima’s Auckland Airport hotel became New Zealand’s first hotel to achieve Toitū net carbonzero certification in 2013 and made the switch to Toitū carbonreduce in 2022. The company is now building on this work, with rooftop solar panels further reducing the hotel’s carbon emissions.
The hotel’s solar panels are owned and managed by a third party that Sudima pays for its energy use. This is known as a power purchase agreement (PPA) and can be a good option for businesses that want to benefit from solar without the commitment of capital investment or maintenance responsibilities.
This case study covers Sudima’s decision to enter into a PPA, and the benefits they are getting from rooftop solar.
Project summary
| Company: | Sudima Hotels |
| Project: | Power purchase agreement (PPA) for rooftop solar |
| Site region: | Auckland |
| Hardware: | 125kW solar array |
In 2022, Sudima Hotels entered a power purchase agreement with Sunergise to supply solar energy from the roof of its Auckland Airport hotel.
Sunergise designed and financed the installation of solar panels on the hotel roof and provides ongoing maintenance. Sudima pays for the electricity it uses from the solar system, and any surplus is sold back to the grid by Sunergise.
Sudima’s solar achievements
- 115,000 kWh
energy produced each year
- 30 %
cheaper electricity from solar
- 12.3 t
carbon emissions avoided each year
The benefits of solar
The hotel opted to install the maximum capacity of solar its roof space could support. Their 125kW solar array is modelled to provide 20% of the hotel's daytime electricity demand. In 2023, it provided just over 10% of the hotel’s total electricity needs.
The electricity cost from their solar PPA is around 30% cheaper than the electricity it was purchasing from the grid.
Electricity and gas make up around 80% of the hotel’s emissions profile. Sudima is determined to reduce emissions as much as possible, maintaining their brand as a sustainable tourism operator. Solar energy is helping reduce emissions by 12.3 tonnes each year.
When we’re bidding for contracts for room nights, there are lots of questions around sustainability, what we’re doing and how we’re running as a business. So we find that we’re attracting more customers by being more sustainable.
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.
Why a solar PPA works for Sudima
Having the whole process managed from start to finish was a key deciding factor for Sudima in opting for a PPA over outright ownership of their solar panels, says Kanika Jhunjhnuwala, Chief Sustainability Officer at the hotel chain.
The company explored a number of options, including purchasing solar outright, but settled on a power purchase agreement (PPA) with Sunergise, a solar power service company that installs, operates and manages solar power arrays in New Zealand and abroad.
Sudima opted for this approach due to its predictable cost of electricity, cashflow considerations and ease of having the hardware installed and managed by a third party.
As part of the agreement, the hotel has a fixed cost for its solar-generated energy for the next 20 years – meaning this portion of its electricity use won’t be subject to volatility in the market.
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