Komatsu UK, a global leader in construction and mining equipment, has partnered with AR Power, a North East-based solar installation company, to implement a 1.76 MWp solar photovoltaic (PV) system at its Birtley manufacturing facility.

The solar PV installation, consisting of 3,912 panels designed and fitted by AR Power, will generate an estimated 1.6 million kWh of electricity annually. This energy production will reduce Komatsu’s reliance on grid electricity and decrease its carbon emissions by an estimated 8.75 million kg each year. The installation aligns with Komatsu’s global sustainability goals while also contributing to the region’s push for more renewable energy sources.

Paul Blanchard, Managing Director at Komatsu UK, said: “Partnering with AR Power, a local company, has been key in helping us move forward with our sustainability strategy. We’ve been exploring solar energy for some time, but it wasn’t until we worked with AR Power that we could make this project a reality. Their asset finance solution allowed us to make this significant investment in clean energy, while supporting a North East business that shares our values of environmental responsibility and regional economic growth.”

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, allowing the company to benefit from long-term energy savings.

Stephen Armstrong, Head of Commercial at AR Power, said: “This project is a great example of how North East businesses can collaborate to create sustainable solutions for the region. We’re proud to be working with Komatsu, a company that has a long history of innovation and quality, to help them reduce their carbon footprint and make significant savings on energy costs. This commercial solar panel installation is the largest rooftop project we’ve undertaken and is a testament to the growing demand for renewable energy solutions in the region’s industrial sector.”

The installation process began at the beginning of the year and is expected to be completed by July 2025. Komatsu’s investment in solar energy supports its ongoing operations at the Birtley site, where the company manufactures and supplies equipment for industries including construction and mining. As part of its broader commitment to sustainability, Komatsu continues to integrate green energy solutions across its operations, helping drive the North East’s transition to a more sustainable future.

For more information about AR Power services and solutions visit: https://www.arpower.co.uk