Image credit: [bilanol]©123RF.com
With banks and other lenders becoming increasingly likely to fund solar undertakings, solar power may be the alternative energy source to reduce South Africa’s reliance on Eskom.
With loadshedding firmly back on the agenda, business and property owners must come up with solutions to keep the lights on, trade moving and production flowing. Buildings that are not equipped with alternative power face hours of lost productivity or sales when loadshedding kicks in, which drastically impacts their bottom line and that of tenants. Solar energy is the most accessible alternative power source in South Africa, to eliminate reliance on the Eskom grid.
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The perception of solar energy is that it’s a very expensive installation to take on, particularly due to the initial costs. Fortunately, funding institutions are increasingly funding solar, making it an economically viable decision for commercial, retail and industrial businesses.
Typically, the funding of solar installation is over a three-year period. Loadshedding is predicted to continue for at least another five years, so conceivably you could have installed, paid off and be paying less for reliable solar energy before Eskom is back at full capacity.
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Renting out solar powered roofs
Another interesting trend is solar providers setting up shop on the rooftop of a company, renting the space and then selling back the solar energy to the tenants of the building. This trade agreement is usually based on the building strictly using the solar energy being generated on the rooftop. It also means the owner doesn’t assume the risk of owning the solar panels.
This type of agreement provides an additional revenue stream for landlords through the rental of the rooftop, which would’ve otherwise not been utilised at all. In addition, the solar energy cost per month can be passed to the tenant, which may be much lower than regular electricity.
Brightening up value
A solar-powered property is considered a hot commodity compared to one that is strictly connected to the Eskom grid. It attracts tenants, as every business prefers consistent power.
It’s worth noting than in some industries, the cost of integrating solar can be cheaper if you require less storage capacity. For example, factories that mostly operate in daylight hours would likely be able to use up all the solar energy generated per day. A smaller commercial offering or one that operates primarily at night would likely need storage as they don’t require the daily amount of energy that the solar panels generate. They would need to purchase battery packs to store solar energy, which adds to the installation costs. But …….