The evolution of solar finance: Powering South Africa’s shift to solar
WITH electricity tariffs continuing to rise and sustainability goals becoming essential, more South African businesses and property owners are turning to solar power. The business case is clear, but upfront costs have traditionally been a major barrier.
Companies like Candi Solar are changing this with performance-based finance models that make solar accessible, affordable, and low-risk. These models link repayments to actual system performance, remove large upfront investments, and unlock tax benefits — turning solar from a capital expense into a predictable operating cost.
A 100 kWp system may cost between R1.5 million and R3.5 million, while a 1 MWp system can reach R16 million. Today, the challenge is less about convincing companies to adopt solar and more about helping them finance it effectively.
Traditional options
Bank loans and self-financing give businesses ownership and allow tax incentives, but fixed repayments, collateral requirements, and exposure to performance risk can strain cash flow. Power Purchase Agreements (PPAs) remove upfront investment, with the developer owning and maintaining the system and selling power at a set rate per kWh. However, ownership remains with the developer, so the client loses tax and depreciation benefits.
Performance-Linked Instalment Sale (PLIS)
To bridge this gap, Candi Solar offers the Performance-Linked Instalment Sale (PLIS). It provides no upfront cost, immediate ownership, and payments tied to the system’s actual generation. Clients also benefit from Section 12B, which offers a 100% first-year deduction on qualifying installations. Repayments can be tailored to seasonal cash-flow patterns, easing financial pressure.
Solar Refinancing (Solar Refi)
Solar Refi assists businesses that already own solar systems to release capital or escape restrictive finance terms. Candi either purchases the existing asset or provides a loan against it, injecting liquidity into the business. The client then buys power at a discounted rate and only pays when the system performs. Candi also assumes maintenance and performance risk.
Ongoing performance assurance
For businesses that already self-funded installations, Solar Max and Solar Protect+ ensure long-term system performance, with the latter offering compensation if generation falls short.
With over 165 installations and strong backing from international investors, Candi Solar is enabling businesses to adopt solar confidently, affordably, and sustainably.
