Solar Finance Options
Several financing options exist within the solar industry. Although they may vary according to the service provider, there are essentially five or more
types of financing options that are available. Our financing approach is flexible we welcome direct capital investment, but we are happy to provide
bespoke financing solutions through Solar Power Purchasing Agreements (PPAs) where appropriate.
Cash Purchase Options
This is when a business owner or individual makes an outright purchase for the solar power generating plant. A solar power plant is an asset that
can last for decades, so buying it in cash will give you a clear balance sheet. It is a straightforward transaction where you will have complete
ownership and responsibility for the system. The advantage of buying cash is that you would have purchased your future energy needs today, so
you won't have to worry about inflation.
Benefits of Cash Purchase
❖ Own the system from day one.
❖ Greater ROI
❖ Pay off the system quicker and benefit from the savings that come with a solar PV plant for the remaining life of the system.
❖ Achieve sustainability goals.
❖ Reduce your carbon emissions and reach your green energy targets.
❖ Tax incentives
❖ Spread the cost of your asset over 3 years or claim 100% of the Capex costs in the first year of using your system
❖ Avoid long-term agreements if your business only has a limited contracting period or resource expectancy.
❖ Warranty
❖ We provide product & workmanship warranties for the first 12 months.
❖ Maintenance options are available: find out about our maintenance options for your system.
Loan Purchase Options
Purchasing solar PV plants through a bank financing solution is like a cash purchasing option it has the same advantages and benefits as a cash
purchase with other added advantages. It comes with some other disadvantages such as reducing one credit rating if not well managed leading to loss of assets.
Purchasing Under a Deferred Payment Agreement (DPA)
With the DPA Solar purchasing options the client makes a percentage upfront deposit for the cost of the solar PV plant to the developer at an
agreed percentage between the developer and the customer and the remaining sum of money is deferred for at an easy instalment rate within a
specified period of time. The benefits of buying solar under DPA are that it makes going solar affordable and flexible. With Eco Southern Energy
DPA purchasing option you also have the option to make your own payment plan and keep your monthly instalment less than or equal to your
monthly electricity bills thereby allowing the solar PV plant to pay for itself.
Some of the Benefits of Purchasing Solar DPA
❖ Get cleaner, low-tariff energy.
❖ The developer provides operation and maintenance services for the solar PV power plant
❖ Reach your sustainability goals quickly with solar energy and add tangible results to your corporate responsibility endeavours. Solar DPA
comes with Renewable Energy Certificates (RECs) or Guarantee, which add to your green credentials.
❖ Make money for your business. Energy is key to your operations.
❖ Flexible payments solution
Solar Power Purchasing Agreement
A Solar PPAs is a financial agreement that is signed between the business owner and the solar PV plant developer and works more like the
rental method, where the business owner only pays for the electricity generated at a tariff that is much cheaper than Eskom. This tariff increases
annually at fixed escalation rates, allowing businesses to predict future energy costs accurately. The solar PV plant developer owns, installs, and
maintains the solar PV system on the customer's property. The developer is responsible for all the costs of purchasing, installing, and maintaining
the entire system. The customer only pays for the electricity generated from the solar power plant at a predetermined rate.
Who owns it:
The solar PV plant belongs to the developer until the end of the agreement, or in some instances, the business owner will be able
to purchase the system.
Insurance: A PPA allows business owners to have the peace of mind that the solar system on their roof is always monitored and insured
accordingly, and any damage caused to the solar system will be fully covered.The Benefits of a Solar PPA
Power Purchase Agreements is a simple, stress-free for businesses to receive all the benefits of owning a solar system without the expense or
stress of operating and maintaining one. It is a risk-free approach that enables businesses to reduce their operating costs and start saving from
day one.
How Does My Business Benefit from a Solar PPA
A Solar PPAs is an efficient and effective green energy business model that allows you to enjoy the following benefit from day one.
❖ Get cleaner, low-tariff energy with no capital outlay.
❖ Have the solar service company provide complete maintenance, repair, and replacement costs for the entire solar energy system.
❖ Hedge your business from the risk of fluctuating energy prices. Rather than having to buy your energy at market rates (which rely on
variables like supply and demand forces, reservoir levels, reserve power, charges, etc.), you will have a predetermined rate that is constant.
❖ Have energy costs that will also not be subject to inflationary pressures. With a constant, predictable energy rate, your business will be
making savings for decades.
❖ Reach your sustainability goals quickly with solar energy and add tangible results to your corporate responsibility endeavours. Solar PPAs
come with Renewable Energy Certificates (RECs) or Guarantee, which add to your green credentials.
Why is PPA a Better Solar Financing Option
Solar PPAs are suitable for large-scale projects that need to reduce their electricity costs over the long term. Buying a solar solution in cash for a
large project can easily run into millions of Rands. Purchasing Solar energy through bank loans is another good method but has a direct effect on
your credit rating if not well managed.
What Can My Business Expect from a Solar PPAs Service Provider
With Solar PPAs, you only pay for the energy generated. The solar service provider will provide monitoring and maintenance for the system on
your premises at no additional cost to you. Should there be a fault, breakage, or malfunction of any kind, the solar service provider will take care
of it. Your part in the deal is to use and pay for the electricity that the solar power plant generates. The solar service provider will take care of the
rest.
Key Features of a Solar Power Purchase Agreement
❖ Solar PPAs agreement defines the terms of the contract for selling and purchasing of electricity generated between the developer and the
customer. A PPA will have the following basic features:
❖ The commencement date of the relationship between the solar service provider and the customer. It will also have an implementation
schedule that includes project assessment, administrative procedures, and system installation.
Roof Rental Solution
This is another very important and easy way for owners of commercial shopping centres and malls, to monetize their unused roof space for solar
panel installation. At Eco Southern Energy we make use of this space for solar panel installations to generate electricity for the rentals of the malls.
The costs of maintenance, operation, and insurance remain the service of Eco Southern Energy.
Solar PPA - Power Purchase Agreement (Wheeling System)
With new legislation in place, IPPs are now able to generate power from a central location and wheel that power through the grid network to a
private off-taker. Eco Southern Energy allows for this offsite energy generation and supply. Wheeling Solar PPA with us allows for a larger portion
of your energy demand to be supplied through cheaper cleaner energy sources
