Included in amongst all the considerations when sourcing a new solar system for your business, is taking into consideration the option of a Power Purchase Agreement [PPA], instead of traditional outright purchase.
If the thought of a capital solar investment is daunting, entering into a PPA might be a viable option for you and your business.
The PPA concept has been mainstream in overseas countries for quite some time now, but it is still quite a foreign concept here in South Africa.
In the most basic and simple terms, a solar PPA is an agreement for a solar company that will pay for the installation of a solar system for your business and will sell you the power it generates, at a lower rate than what you’d normally receive from your current energy supplier.
No upfront capital expenditure is required for the installation of a solar system. The costs will be incurred by the agreed amount of R/kWh you use.
Additionally, you will not be held responsible for the ongoing costs of maintaining the solar system or insurance for the system, thus giving you zero risk. And by paying the lower rates, your operating cost savings will be immediate.
Even though awareness of PPA in South Africa is still relatively low, it’s a viable option for any business to consider.