Finance solutions for solar PV

The high demand, growing trend and technological advances have helped decrease the cost of solar PV systems. While there are different costs to consider, financial solutions like solar power finance can help businesses get the ball rolling.

Solar power finance is where clients make use of innovative financial mechanisms and incentives that have the potential to unlock substantial demand for energy services in South Africa. “It’s essentially an opportunity, in and of itself, but it’s also a driver of opportunities in the energy sector,” explains Energy Analyst, Reshmi Muringathuparambil of Green Cape, a SAPVIA member and leading non-profit organisation focused on the development of the green economy. Here are just some of the options available:

Commercial banks and SAPVIA members such as Absa and Nedbank provide loans covering 70% to 100% of the capital costs within a five to ten-year loan term.

A Power Purchase Agreement is an innovative model that the EPCs or developers offer. It enables South Africans to diversify their energy sources without the upfront costs associated with switching to solar. The provider owns the system which means they lay out the capital for installation. The buyer purchases electricity at a predetermined rate, with no upfront costs.

Online impact investing platforms like local crowdfunding platforms such as The Sun Exchange and FedGroup Ventures, allows individuals to buy solar PV panels or cells. These are then rented to businesses at no upfront cost. “The owners of the panels/cells receive a rental or income for the lifetime of the panels/cells and businesses usually immediately start to save on their energy bill,” explains Muringathuparambil.

Read the full article on solar PV financing with and accredited list of financers and solar PV installers from SAPVIA:

https://www.sapvia.co.za/finance-solutions-for-pv-systems/

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