HomeCo energy

CASE STUDY

HomeCo large format and sub-regional shopping centre solar deployment

COMMERCIAL PROPERTY, LARGE FORMAT RETAIL, ENERGY STRATEGY, NET ZERO, SUSTAINABILITY, SOLAR DEPLOYMENT, ENERGY MANAGEMENT, REIT

Large format retail solar deployment

HMC Capital has committed to fostering healthy, sustainable communities through the responsible management of its funds and assets. A cornerstone of this strategy is its pledge to Climate Action, including a target to achieve net-zero carbon emissions by 2028.

HomeCo, an investment fund of HMC Capital, holds a portfolio of large-format and sub-regional shopping centres that offered strong potential for solar deployment.

To support this initiative, HMC Capital engaged 1Circle to deliver comprehensive commercial and technical advisory services. This scope included portfolio-wide analysis and asset prioritisation, feasibility assessments for solar at each asset, procurement, deployment, and ongoing performance management of the solar installations.

Challenge

The deployment of solar for HomeCo presented distinct challenges including:

  • Tight deployment timelines given the portfolio included over 50 assets
  • Significant diversity in existing conditions
  • Various local conditions and different Local Distribution Network Service provider requirements
  • High financial expectations
  • Legacy of caution about solar given the historic pitches by contractors and solution providers with partisan vested interests
  • Limited internal capacity to support the program
  • Limited knowledge nor experience in solar deployment, cost and options

 

 

Solution

1Circle fulfilled HomeCo’s requirements using its Solar Performance service.  Solar Performance is an end-to-end solution for commercial-scale solar.

The scope of work included:

  • Assessment of the shopping centre portfolio and working with HomeCo to determing a prioritised deployment plan
  • Complete of individual investment propositions that were bespoke to each asset
  • Evaluate shortlisted solar contractors and advise on selection
  • Advise on contractual arrangements and provide template technical requirements on which contracts were based
  • Negotiated with AGL custom PPA rates to comply with HomeCo set goals
  • Provided detailed oversight and coordination of contract (AGL) to deliver the solar system
  • Completed the system anniversary review and validated system savings

Results

Program results included:

On-site solar electricity

  • Deployed solar is designed to produce 50%+ common area renewable electricity from 2028

Financial Security & Cost Reduction

  • Achieved full solar savings recovery through a variable Power Purchase Agreement (PPA) with AGL
  • Solar system results in no additional electricity cost
  • PPA structure requires no up-front capital investment and produces high financial returns when the fund buyout of the PPA occurs in 2028

Emissions reduction

  • Solar system will meet half of Penrith’s sustainability target once the Solar PPA is bought out from AGL in 2028

Stakeholder Support & Improved Reputation

  • Unanimous support from all stakeholder groups for the switch to renewable energy, with stakeholders confidently educated about costs, sustainability options and broader benefits.

For further information contact 1circle