Do you have a large rooftop area that is currently undeveloped? Did you know that free space could be earning you revenue without costing you a cent? With a Decentral Energy solar roof rental agreement, you could add another revenue stream to your property by renting out your roof for a solar PV plant. You will further benefit from the solar energy generated at or below the cost of your utility supply, and lessen your dependence on the Eskom or municipal grid.
In this article, we break down everything you need to know.
What is a solar roof rental agreement?
A solar roof rental agreement, also known as a power purchase and rental agreement (PPRA), is a lease agreement that is signed between a property owner and a solar services provider. The solar services provider finances, installs, owns, and operates a solar PV system on the property and pays rental to the property owner. The provider then either exports all the power generated to the grid or sells it (or some of it) to the property owner or their tenants.
What are the benefits of roof rental income?
Your roof rental revenues are underpinned by a long-term lease agreement with Decentral. Although a roof doesn’t form part of your gross lettable area, roof rental revenues can be capitalised. In this way, they can increase both the value of your property and your ability to raise gearing.
Will my roof work for solar?
If you’d like to pursue a roof rental agreement, get in touch with us. Our team will do a thorough assessment of your roof at no charge to determine its suitability for solar energy generation. The factors we consider include your property’s location, the direction the roof faces, the roof’s state, and its construction material.
For instance, north-, northeast-, and northwest-facing roofs simply do not get enough direct sunlight for effective solar generation. Additionally, the structure and state of some roofs cannot support a solar PV system. However, just about all roofing materials are appropriate for solar installations, including tiles, standing seam metal and corrugated steel.
What is more, solar PV systems don’t even require a traditional roof. Carports make fantastic solar panel mounts, and it is even possible to float panels on dams or lakes!
How much money could I make from renting out my roof?
The rental amount you will receive depends on several factors, including the specific site solar yield of your property. We currently typically offer R100,000 to R1 million per annum for small-scale projects (terms and conditions apply).
In effect, signing a Decentral Energy solar roof rental agreement is like gaining a bonus tenant: one that will increase the value of your property without any headaches or additional risk.
What happens with my energy bills?
If you or your tenants use the solar energy generated onsite, you will have two energy bills to pay: your regular Eskom or municipality bill, and one from Decentral. The first will be reduced, since you will be consuming less energy from the grid. We also guarantee that you will pay a lower tariff for our clean energy than for Eskom or municipal power.
Would I have to pay for all the power generated?
No. Decentral Energy roof rental agreements operate on a “no take no pay” or “pay as you go” basis. This means you pay only for what you consume.
What are the risks and who takes care of the details?
Our roof rental agreements carry no risk for you. Decentral Energy is responsible for the installation, as well as the day-to-day operation, maintenance, and insurance of the solar PV system. We also provide additional security hardware and monitoring where necessary.
What happens to the system after the rental period?
With a Decentral Energy solar roof rental agreement, you will have full ownership of the system after the expiry of the rental term (typically 20 years). We also offer buy-out options that allow you to own your installation outright after a period of time.
If you’re interested in pursuing a roof rental or power purchase agreement, get in touch with us today. We’ll assess your needs and the suitability of your property for solar energy generation, and put a proposal together so that you can start benefitting as soon as possible from the financial and environmental savings that solar power provides. Take a look at some of our recent projects.