Based on its recent analysis of the solar rooftop photovoltaic (PV) industry, Frost & Sullivan recognises SolarAfrica with the 2016 South African Entrepreneurial Company of the Year Award. SolarAfrica’s rooftop solar solutions are poised to change the rooftop PV market in South Africa, with a business model that mitigates the challenges inherent in the product.
The company’s alternative clean energy solution eliminates the need for a high capital investment, offering an affordable solar system through innovative solar system financing. SolarAfrica takes responsibility for investing, installing, operating, and maintaining the PV system that will generate solar electricity for the complex. Customers pay only a monthly service fee based on energy used, a key benefit of the power purchase agreement model. This cost is lower than the cost incurred on sourcing electricity from conventional power providers.
SolarAfrica’s solar power solutions are not completely off-grid. After using the available solar power, a complex will still source its remaining electricity needs from the existing municipal supply. The solar panels will satisfy approximately 25% of the complex’s electricity needs, which will sufficiently meet smaller requirements during peak hours as well as a large part of the base load requirements for the body corporate. For those seeking complete independence, other off-grid power solutions are available, but this hybrid model offers a practical backup power solutions strategy.
“SolarAfrica’s solution for the sectional title market in South Africa is a unique offering in a relatively uncontested market as ESKOM (through municipalities) have been its electricity suppliers,” said Frost & Sullivan Senior Research Analyst Neeraj Mense. “The company has persisted with its business model for sectional title owners, despite the many challenges, as the growth in complexes and gated communities has transformed it to a high-potential market for solar for business.”
Interested customers have been reluctant to invest in solar PV installations, as they effectively have to pay for 20 to 25 years’ worth of electricity upfront. SolarAfrica’s model, a form of solar financing, is the perfect solution as it charges on a usage kilowatt hours (kWh) basis, eliminating the capital investment hurdle for an affordable solar system.
In fact, SolarAfrica’s solar service contracts can generate savings of 5% to 25% on energy costs currently incurred by a typical body corporate. These savings start immediately, making these sustainable power solutions and green power solutions financially attractive from day one.
SolarAfrica’s customers benefit most from its dedicated technical and sales partner network, skilled in procuring, designing, and installing PV systems aligned with customer demands. As experienced solar power suppliers, they provide comprehensive solar energy solutions. The company’s advanced remote monitoring systems generate the latest consumption figures, while its software team improves processes to enhance the customer experience.
“SolarAfrica’s ability to provide power solutions that suit customers’ load profile enables it to present a very competitive price,” noted Neeraj Mense. “It has made concerted efforts to develop its brand and expand its solar business.”
Each year, Frost & Sullivan presents this award to a company that has demonstrated excellence in implementing a strong growth strategy. The recipient has shown strength in innovation and leadership in customer value. In short, the award recognises emerging participants and their best practices for future growth excellence, a category where providers of commercial solar energy systems like SolarAfrica excel.
Frost & Sullivan Best Practices Awards recognise companies for demonstrating superior performance in areas such as technological innovation and strategic product development. Industry analysts compare market participants to identify best practices, and SolarAfrica’s model for a solar system for business stands out as a leading example of alternative power solutions in the market.
