Power Purchase Agreement
Get a top-tier solar energy system without any upfront cost or ongoing maintenance expenses with a PPA.
You can power your daytime operations with cheaper solar energy while reducing your business’s carbon footprint. It’s solar savings made simple and accessible.
Solution benefits
No capital investment
We install capex-free clean energy solutions with fully installed systems.
Cheaper tariffs
Pay only for the solar energy you use at a tariff that is up to 50% cheaper.
All-inclusive contracts
Maintenance, cleaning and insurance are all included in your PPA.
Performance guaranteed
We monitor your system to ensure maximum uptime and performance.
How does a PPA compare to other commercial solar solution options?
MOST POPULAR
PPA
A CAPEX-free solar agreement where your business receives all the benefits of owning a system without the expense or hassle of operating and maintaining one.
Capital investment
No
Discounted solar tariffs
Insurance
Maintenance & monitoring
Panel cleaning
Full system ownership
No
Cash Purchase
If you have the cash, you can buy an entire commercial solar energy system in a single payment. You will have complete ownership of and responsibility for the solar energy system.
Capital investment
Discounted solar tariffs
No
Insurance
No
Maintenance & monitoring
No*
Panel cleaning
No*
Full system ownership
* Maintenance, monitoring and panel cleaning options available through SolarAfrica
Roof Rental
A favoured solar solution choice for owners of commercial shopping centres and strip malls. Monetise your previously unused roof space and save.
Capital investment
No
Discounted solar tariffs
No
Insurance
Maintenance & monitoring
Panel cleaning
Full system ownership
No
* Maintenance, monitoring and panel cleaning options available through SolarAfrica
Capital investment
Discounted solar tariffs
Insurance
Maintenance & monitoring
Panel cleaning
Full system ownership
PPA
MOST POPULAR
A CAPEX-free solar agreement where your business receives all the benefits of owning a system without the expense or hassle of operating and maintaining one.
Cash Purchase
If you have the cash, you can buy an entire commercial solar energy system in a single payment. You will have complete ownership of and responsibility for the solar energy system.
Roof Rental
A favoured solar solution choice for owners of commercial shopping centres and strip malls. Monetise your previously unused roof space and save.
* Maintenance, monitoring and panel cleaning options available through SolarAfrica
01. What is a Power Purchase Agreement?
A PPA is a contract to sell the power a solar service provider (electricity generator) produces to the customer (off-taker). The solar service provider will own, install, and maintain the solar energy system on the customer’s property.
The solar service provider will be responsible for all the costs of purchasing, installing, and maintaining the entire system. The customer will only pay for the electricity they use from the solar energy system at a predetermined tariff.
02. What are the key features of a PPA?
Dates & Tenure: When the agreement starts and how long it is active.
Rates & Escalations: The tariff you’ll pay for your solar energy, including clear details about future increases.
Maintenance & Insurance: What your solar service provider will maintain and what is covered by insurance.
Buy-out & Extensions: How you can extend the contract, terminate it early, or opt for a buy-out.
Tax and RECs: The transfer of any green benefits such as tax breaks or renewable energy credits (RECs)
03. Who owns the solar energy equipment in a PPA?
With a PPA, the customer doesn’t own the solar energy system, but they reap the full benefits of having one. The solar service provider will purchase, possess, and maintain the solar panels, batteries, inverters, and performance monitoring systems. The customer pays only for the electricity that it consumes a rate that can be 50% cheaper utility power.
That means your business gets green, cheap electricity without having to worry about buying equipment or maintaining it.
04. What can my business expect from a PPA service provider?
With PPA, you only pay for the solar electricity you use, not a cent more.
The solar service provider will monitor the system on your premises at their expense. Should there be a fault, breakage, or malfunction they will take care of it. Your part in the deal is to use and pay for the electricity that the solar system generates. Since the solar provider only gets paid from the solar electricity that your business uses, it’s in their best interest to keep the solar system working efficiently.
05. Why is a PPA a better financing option?
PPA is suitable for large-scale projects that need to reduce their electricity costs over the long term.
Buying a solar solution in cash can easily run into millions of Rands. Securing a solar loan agreement may be easier on your bank account, but it can impact your credit rating and usually comes with restrictive terms. Any finance you need after the solar project will come at a higher interest or principal, making it tricky to take on larger projects in future.
06. Which hidden costs should I look out for?
Monitoring software, internet, data, and equipment to check on your system 24/7.
Maintenance hours, skills and equipment needed to keep your system producing and in tip-top shape.
Repairs/replacement of solar panels damaged by hail, debris, defects, etc. An often unforeseen and expensive cost.
Cleaning to remove any dust/dirt preventing solar panels from producing. And no, rainwater doesn’t count.
Call-out fees every time you need a service provider to check on the system.
Rooftop access that requires expensive work-at-height machinery you need to rent or even buy.
Insurance that might cover only the basics, leading to more expenses and excess down the line.
07. Why should I choose a SolarAfrica PPA?
We pioneered PPAs in South Africa over a decade ago and have delivered more than 200 projects across South Africa. We value the solution over a sale and our in-house experts take the time to understand your energy usage and requirements to create the perfect PPA for your business. A system that is too big will be a waste, and a system that is too small will not give you the power you need. Our products and services also come with guarantees.
Our portfolio of clean energy projects stretches across the country, bringing the power of renewable energy to hundreds of businesses.
Upgrade to Electricity 2.0
Your one source for expert advice, groundbreaking trends and actionable answers to all your energy-related questions.
