Vicinity Rolls Out Australia’s Largest Property Solar Program

ASX-listed shopping mall giant Vicinity Centres has announced the injection of a further $50 million into its solar energy program unveiled earlier this year.

The investment, which now surpasses $75 million, will create the largest property solar program in the country.

The first stage, announced in April, is already under way at five shopping centres in South Australia and Western Australia.

The Melbourne-based investment trust currently holds approximately $6.9 billion worth of shopping centres around Australia

When completed, the two stages will be capable of generating 48.5 gigawatt hours of power annually, potentially reducing Vicinity's consumption of grid electricity by 40 per cent.

The company highlighted a reduction in its environmental footprint across communities as its prime motivator with 17 further shopping centres to be topped with panels.

Related: Vicinity to Launch $1 Billion Property Fund with Singapore's Keppel Corp

“This investment will generate clean power for our centres for the long term, make a positive environmental impact and deliver shared value for our customers, retailers and investors,” Vicinity Centres executive general manager Justin Mills said.

“As technology advances so does the business case for solar.”

The new solar panels will add 20.6 megawatts annually to the 11.2 megawatts capacity achieved in the first stage, enough to power 5,000 homes and equivalent to removing 18,000 cars.

“We anticipate strong investment returns with the project to generate an IRR of approximately 12 per cent, while also reducing our consumption from the national electricity grid by up to 40 per cent,” Mills said.

When completed, the two stages will be capable generating 48.5 gigawatt hours of power annually.

“We’re committed to energy leadership targeting renewable energy, combined with battery and other storage technology and creating efficiencies across our portfolio, as part of Vicinity’s Integrated Energy Strategy.”

Second stage installation is due to commence later this year.

Earlier this year, Vicinity announced plans for the sale of up to $1 billion of sub-regional and neighbourhood shopping centres.

The announcement signalled the company's need to protect profits as retail owners face growing competition from online retailers.