With the adoption of solar PV systems by commercial and industrial businesses now mainstream, the most significant consideration for companies is selecting the most appropriate financing option for their project. Charl Alheit, chief investment officer at SolarAfrica, looks at five options: PPAs, fixed roof rentals, lease agreement/equipment rental, upfront capital investment, and bank financing.
As years of mismanagement at energy utility Eskom results in continued power outages and energy tariff increases across South Africa’s industrial and manufacturing sectors, domestic businesses are increasingly looking to renewable energy alternatives to power their commercial operations.
Perhaps the most favoured alternative to state-supplied power, rooftop solar photovoltaic (solar PV) systems are progressively being considered the most readily accessible off-grid energy solution in South Africa.
According to the Department of Mineral Resources and Energy, South Africa’s solar resource is one of the highest in the world, with an annual 24-hour global solar radiation average of about 220W/m2.
When this is considered alongside the 300% increase in domestic electricity prices over the last thirteen years, the growing trend towards solar for businesses appears inevitable.
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