SDCL Energy Efficiency Income Trust PLC (LON:SEIT) has signed an agreement with supermarkets giant Tesco PLC (LON:TSCO) for a portfolio of rooftop solar projects.
The energy efficiency sector investor said Tesco will enter a power purchase agreement for each individual site, with SDCL to be responsible for installing, operating, and maintaining each project.
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The trust said the initial batch of projects will be around 1 megawatt and are the first phase of approximately 5 megawatts programme, with additional solar projects are planned under a framework agreement.
It has partnered with Kingspan Energy Ltd, which will be the engineering, operating, and construction contractor under the deal.
SDCL’s chief executive Jonathan Maxwell commented: "We are continuing to deliver on the pipeline opportunities identified at the time of our initial public offering and are pleased to announce our first investment in rooftop solar [photovoltaics].”
He added: “With all the revenues being generated from the [power purchase agreements] and costs being largely fixed, this is a positive, stable investment for [SDCL] and one we are delighted to add to our growing portfolio.”
In afternoon trading, SDCL shares held steady at 105.50p.