The partnership will see the installation of a 1.76 MWp solar photovoltaic (PV) system at Komatsu UK’s Northeast manufacturing plant.
The new system, made up of 3,912 panels, can generate around 1.6m kWh of electricity annually, cutting carbon emissions by 8.75m kg per year.
Komatsu's Commitment to Sustainable Manufacturing
Paul Blanchard, managing director of Komatsu UK, said: “This partnership with AR Power allows us to integrate renewable energy solutions into our manufacturing operations, reducing energy costs and enhancing sustainability. The decision to invest in solar power reflects our ongoing commitment to improving energy efficiency and reducing our carbon footprint while also supporting long-term cost savings through asset finance.”
Solar PV System Designed for Operational Efficiency
Komatsu chose an asset finance model over a Power Purchase Agreement (PPA) due to the higher return on investment and anticipated payback period of around seven years. The solar PV system, once fully operational, will be owned outright by Komatsu following the completion of the finance term.
AR Power's Role in the Project
Stephen Armstrong, head of commercial at AR Power, said: “This project demonstrates how manufacturing companies can utilise renewable energy solutions to improve operational efficiency and reduce energy costs. We are proud to have designed and be currently installing the largest commercial solar panel installation we’ve undertaken, reflecting the increasing demand for sustainable energy solutions across the industrial sector.”
Future Outlook for Komatsu and AR Power
The project is scheduled for completion by July 2025.