If you are currently paying your monthly electricity bill, then you can afford solar!
Most companies in South Africa believe that going solar means you must be in immediate possession of capital to purchase the equipment, so the majority avoid the topic of solar energy even though they are aware of the cost and environmental benefits.
They simply believe that to spend lots of money now to attain future savings is not necessary, especially at the expense of current investment plans in the business and future capital growth, which is a very understandable statement.
The problem with this situation is that most companies are not well educated on the different types of solar financing, this is because most solar companies in South Africa only offer the cash option to their customers due to capacity to assist with other financial solutions.
However, there are different types of solar financing:
Cash: Pay for the equipment in full upfront
Rental: Zero upfront, pay a fixed monthly fee in return for renting a system and using its power. You can own the system after term.
PPA: Pay only for the power the solar panels produce with an option to own the equipment at the end of contract term
Financed/Loan: Get a loan from the bank “equipment financing” and own the equipment after the contract term
With the Cash option, you can see a return on investment sooner than the other options and the savings are greater in the future because you immediately start producing your own free energy after installation.
The Financed solution is great for when the customer is financing it as part of a new building or renovation and fully understands the benefits of solar solutions. This option is also for those without the upfront capital and would like to pay for the system in loan installments, so they can see a fast return on investment.
The Rental option is very popular because you don’t have to pay any upfront capital to install the system, the solution provider (BlueShift Energy Solutions) will purchase and install (maintenance and insurance included) the system on your property, while you rent it monthly at a fixed fee and in return you use all the power the system generates, at the end of the rental period you get to own the system.
The PPA finance solution is long term based, the contract starts from 10 years to 25 years, you get a fixed rate KWh for the duration of contract term. This option is great because you pay Zero upfront capital and the installation and maintenance cost is covered by the developer, all you pay for is the energy produced.
So, we can safely say…. If you are concerned about the environment and about serious saving your money, then going solar and renewable energy is the best way forward.