Progress through practice: shaping energy strategy in commercial real estate

Energy is no longer a background cost in commercial property, but a driver of competitiveness. Rising tariffs, new supply models and investor expectations mean the way buildings use and procure electricity shapes both operating margins and long-term resilience, and investors increasingly judge portfolios on this basis. There is no single fix. Solar, batteries and wheeling renewable energy all have a role, but none should stand alone. What works is a layered approach that starts with efficiency and then builds towards renewables, wheeling and storage where conditions allow. The sequence matters, and every step must make sense financially and operationally.
 
It starts with insight
Energy management starts with insight. Without the right data, waste remains invisible. One meter for an entire building hides the problem, but multiple meters, benchmarks and dashboards bring it into focus. They reveal the office that consumes as much power on weekends as it does during the week, or the tenant whose usage far exceeds peers of a similar size. Once those patterns are visible, conversations begin and habits can shift. Cooling is more closely matched to occupancy; lights are switched off sooner and demand tapers during quiet periods. Data makes waste visible, and once it is visible, it can be changed. The next step is to act on those insights through measures that permanently reduce demand.
 
Using less to gain more
Energy efficiency is often referred to as the first fuel, as the most effective energy strategy begins by using less. Efficiency is often overlooked because it feels incremental, yet it delivers the biggest and most reliable gains. Replacing outdated lighting with LEDs, upgrading cooling systems to modern low energy alternatives, or ensuring buildings are only conditioned when occupied all reduce consumption immediately. These projects may not be eye-catching, but they shift the baseline permanently. Lower demand means lower bills, and it also means every later step, from installing solar panels to investing in storage, becomes more cost effective. In commercial property, where utilities are one of the largest controllable expenses, efficiency is the foundation on which every other part of the energy mix depends.
 
The case for onsite renewables
After demand has been reduced, onsite renewables are often the next lever to consider. In South Africa, retail centres are the most natural fit. Large rooftops and steady seven-day demand mean solar power can be generated and consumed onsite. Offices, by contrast, face more constraints: roof space is smaller, often shaded, and weekday occupancy means demand does not always match solar production. This is reflected in Redefine’s portfolio, where more than 40MW of its 52MW installed capacity is in retail, compared with just 4.6MW in offices and 7.4MW in industrial.
 
Solar installations on carports are also emerging, particularly in retail environments. They extend the available surface area for solar while offering practical benefits such as shading for cars. Together these projects reflect a broader industry trend to make every square metre of usable space contribute to generation.
 
Unlocking power beyond the site
Onsite generation has limits. Office roofs are small, industrial demand is low, and even the largest retail installations cannot cover a building’s needs year round. To move beyond those constraints, property owners are turning to wheeling. This allows electricity generated in one location to be credited to consumption in another, using the national grid as the balancing mechanism. For commercial real estate, it means that a solar farm in one province can lower the operating costs of an office block in another.
 
The next development is virtual wheeling. Many properties fall under municipalities that do not yet have wheeling frameworks in place. Virtual wheeling allows businesses to continue receiving their utility bills from the municipality, while Eskom handles reconciliation and refunds for wheeled energy. This means that energy procurement can become cleaner and more cost-efficient without immediate changes to tenant billing arrangements, although metering, contracts or data requirements may need updating.
 
Making supply work harder with storage
Even with onsite generation and wheeling agreements in place, the cost of electricity still depends on when it is consumed. Peak tariffs in the early morning and evening can erode much of the benefit from cheaper supply. This is where batteries come in. Their primary role is in arbitrage: charging when tariffs are low and discharging when electricity is expensive. This reduces exposure to peak pricing and helps smooth out demand.Recent South African case studies show that businesses pairing solar with battery storage under time-of-use tariffs are already achieving measurable savings.
 
Batteries also extend the value of onsite renewables. Excess solar produced in the middle of the day can be stored and released in the evening when demand rises. As technology improves, with longer lifespans and falling costs, the case for batteries as a cost management tool is becoming stronger. In an environment where utilities are one of the largest controllable expenses, they are emerging as an important part of the energy mix.
 
Progress through practice
There is no single technology that can transform the energy profile of commercial real estate. Progress comes from a layered approach that starts with insight, builds through efficiency and adds onsite generation, wheeling and storage where they make sense. Each lever reduces risk, protects margins and strengthens resilience when applied with financial discipline.
 
Energy strategy is not about a perfect endpoint but about continuous progress. Cutting waste, generating where possible, procuring where necessary and optimising along the way leads to greener buildings and more competitive assets that can withstand cost pressure while meeting the expectations of tenants and investors.