Funding Models
How to pay for solar — or not
Whether you have capital to invest or want zero upfront cost, there's a model that works for your business. As an approved supplier on both Standard Bank and Nedbank panels with VAF facilities, we'll help you choose the right structure.
Funded Solar / PPA
Zero capital outlay. Pay for energy at a discounted rate.
Best for: Businesses that want savings without capex
Energy Lease
Fixed monthly payments. Predictable energy costs.
Best for: Budget-conscious businesses wanting predictability
Real Savings
What the numbers look like
Here's a typical example for a commercial property spending R200,000/month on electricity:
Current monthly spend
Municipal tariff @ R2.80/kWh
R200,000
Solar PPA rate
Locked in, 5-7% annual escalation
R1.90/kWh
Monthly savings
30%+ reduction from day one
R60,000+
Annual savings
Growing each year as tariffs rise
R720,000+
25-year total savings
Cumulative savings over agreement term
R30M+
* Indicative example only. Actual savings depend on site-specific conditions, load profile, and prevailing tariff rates.
Frequently Asked Questions
What is the minimum site size for funded solar?
Funded solar typically requires a minimum monthly electricity spend of R100,000+ and a suitable roof or land area. Smaller sites may still qualify — contact us to discuss.
How does the S12B tax incentive work?
Section 12B of the Income Tax Act allows businesses to deduct 100% of the cost of qualifying renewable energy assets in the first year. This applies to capex purchases and significantly improves ROI.
Can I switch from funded to owned later?
Yes. Most PPA and lease agreements include a buyout option after a defined period, typically at a pre-agreed residual value.
What escalation rate applies to PPAs?
Typically 5-7% annually — significantly below the 10-15% municipal tariff increases we've seen in recent years.
Do I need to change my Eskom or municipal account?
No. Your existing supply agreement stays in place. Solar supplements your grid supply — you only draw from the grid what solar doesn't cover.