Why PepsiCo is Investing £3.6m in UK Solar

PepsiCo has revealed plans for a significant investment in solar energy at its Southern Region Distribution Centre (SRDC) in Leicester, UK.

The multi-million pound project is part of company's efforts to integrate sustainability across its operations, which support the production and distribution of brands including Lay's, Doritos, Pepsi-Cola and Mountain Dew.

The initiative involves installing solar panels across 30,000 m² of roof space at the Leicester facility, an area equivalent to approximately four football pitches.

PepsiCo is working with Ineco Energy, a specialist in energy infrastructure, to deliver the project.

Once completed, the solar panels are anticipated to generate 100% of the energy required to power the logistics centre throughout the year, which could reduce demand on the national electricity grid.

Construction on the solar power system is expected to be completed by September 2026.

UK Climate Minister Katie White says: "We welcome PepsiCo's decision to embrace our rooftop solar revolution in powering their Walkers crisps distribution centre in Leicester – adding extra crunch to our clean energy mission.

"It's a great example of how businesses in Britain can cut emissions, lower bills and strengthen our energy security."

PepsiCo's solar project

The solar power system is expected to produce around 2.84 GWh of renewable electricity annually, sufficient to power approximately 1,000 UK homes for a year.

Any surplus electricity will be directed towards the adjacent Walkers crisps manufacturing plant, one of the world's largest crisp factories.

Andy Smethurst, UK Warehousing & Logistics Director at PepsiCo, says: "Leicester is already home to one of the world's largest crisp factories and now we're delivering one of the most complex solar power systems, right here in the East Midlands.

"It's a major milestone for PepsiCo UK and shows how we're continuing to find new ways to power our sites and operate more sustainably."

The system will operate year-round, providing consistent clean energy to support the distribution centre's daily operations.

By generating power at the point of use, the facility aims to reduce transmission losses and enhance energy efficiency.

Investments in sustainability

PepsiCo is investing £3.6m (US$4.7m) in the solar panel installation, following a £14m (US$18.3m) investment to upgrade its distribution centre in 2021.

The distribution centre plays a crucial role in PepsiCo's UK supply chain, distributing products manufactured at the company's six factories across the country.

The 2021 investment was one of the biggest UK logistics investments in PepsiCo's history, introducing state-of-the-art equipment and technology throughout the site.

This new solar project complements similar sustainability investments across PepsiCo's UK locations.

Recent initiatives include switching to electric ovens at its Leicester site, installing efficient machinery on its manufacturing line in Coventry and investing in new efficient fryers at its Brigg facility.

According to the company, these initiatives have contributed to reducing greenhouse gas emissions by around 2,400 tonnes per year.

Angus Rose, Director at Ineco Energy, says: "Ineco is incredibly proud to be delivering this flagship solar project for PepsiCo.

"Once operational, it will be one of the largest rooftop systems of its kind in the UK food manufacturing sector, generating the same amount of energy that the SRDC uses in a full year.

"This project has required a collaborative and highly technical approach and we're delighted to now be moving into the construction phase. We look forward to continuing our strong relationship with the PepsiCo team."