SSE Energy Solutions and Ortus Energy serve up solar progress at Iceland
Partnering with SSE Energy Solutions and Ortus Energy, Iceland Foods has reached a significant milestone on its net zero journey. It has completed the first phase of one of the most ambitious solar installations in the food logistics sector, with funding from a Power Purchase Agreement (PPA).
Powering up solar installations
The milestone follows the commissioning of rooftop solar systems at two of six distribution centres, which are now halfway through their first operational year. The two sites are expected to generate around 3MW of electricity, which would reduce the company’s carbon output by 550 tonnes of CO₂ in one year.
Ortus Energy, the installation partner, has estimated that the solar systems at the two sites could power an average Iceland store for almost six years.
The UK warehousing sector offers a clear pathway to accelerate decarbonisation through rooftop solar. This project with Iceland shows how major energy users can capture long-term value from their real estate by generating clean electricity on-site. Through our PPA model and collaboration with SSE Energy Solutions, we’re proud to be delivering some of the largest rooftop solar projects in the UK and offering a bespoke solution that balances sustainability, cost-efficiency, and energy security for British industry.
Serving up predictable energy prices
SSE Energy Solutions, the funding partner, is financing the project through a power purchase agreement (PPA). As per the agreement, Iceland will pay a fixed rate for the energy generated over the next 25 years, with no upfront investment. This offers access to renewable energy at a predictable price, protecting against fluctuating prices while supporting sustainability objectives.
We want to be a strategic energy partner for businesses by helping them achieve their decarbonisation aims and delivering the benefits of low-carbon electricity at a stable cost directly to their doors and roofs. Rooftop space across the industrial and commercial sector offers a viable path to help the government meet its target of 45-47GW of installed solar capacity by 2030.
Turning up the heat on the food logistics sector
According to the UK Warehousing Association, Britain’s warehouse rooftops could generate up to 15GW of solar capacity if fully utilised. Iceland has demonstrated how food logistics can play a key role in the UK’s path to net zero. The solar systems have a high generating capacity relative to the rooftop footprint, making them some of the most efficient in the industry. This highlights the strategic planning behind the project, as well as the strong suitability of food logistics infrastructure for on-site solar generation.
Food warehousing is uniquely positioned to benefit from rooftop solar. It offers lower and more secure electricity costs, reduces environmental impact, increases asset value, and makes use of existing infrastructure without additional land requirements. Iceland’s forward-looking approach sets a benchmark for the sector, showing that sustainability and operational efficiency can go hand in hand.
About SSE Energy Solutions
SSE Energy Solutions is a leading provider of low-carbon energy solutions to businesses, supplying gas and electricity to almost 350,000 business premises across Great Britain.
SSE is part way through a five-year programme to invest £17.5bn in new low-carbon energy infrastructure out to 2027. As the shopfront of this investment, SSE Energy Solutions is helping businesses reduce their emissions with innovative energy solutions such as Corporate Power Purchase Agreements (CPPAs) and energy efficiency measures through its Smart Buildings business.
About Ortus Energy
Ortus Energy is powering up British industry by delivering renewable energy on a commercial scale. In strategic partnership with SSE Energy Solutions, Ortus helps commercial and industrial businesses transition to on-site renewable power through fully financed and expertly managed solutions.
With a laser-like focus on large-scale properties with high energy demands – such as logistics centers, agricultural buildings, manufacturing facilities and food warehousing – Ortus Energy’s Power Purchase Agreement enables businesses to reduce carbon emissions, lower energy costs and improve energy resilience without upfront capital investment. By unlocking the untapped potential of commercial roof space, Ortus is accelerating the UK’s path to net zero while expertly creating long-term value for occupiers and property owners alike.
This is just one of the many power purchase agreements (PPAs) with SSE Energy Solutions. Stay up to date with the latest news and insights, and updates on this exciting collaboration.
*BEIS Non-Domestic National Energy Efficiency Data Framework has been used to estimate total warehouse floor area. This data shows 35000 warehouses over 1000 sq. m (~10000 sq. ft) in size, with a total floor area of 150 million sq. m and average energy use of 11.2 TWh (75% of 14.4 TWh total electricity use) Assumptions: Roof area = floor area. Solar peak capacity = 200kW/m2 = 5000m2 /MW. Roof space fitted = 50%. Average load factor = 11% Total peak capacity = (150,000,000/5000)×50% = 15000MW = 15 GW
