Solar Power Purchase Agreements (PPAs) have increased in popularity among South African businesses looking to protect themselves against ever-rising energy costs and the disruptions of load shedding.
Many business owners see PPAs as merely a financing solution. Here’s why they’re wrong.
While finance is certainly a key element, the true value of a PPA lies far beyond that. It’s a comprehensive package that delivers reliable, optimised solar energy through expert asset management and operations and maintenance (O&M).
Financing only captures a fraction of the story.
Owning a solar system involves complexities beyond the initial installation. The system’s technical components require continual monitoring and regular maintenance. From solar panel cleaning and inspections to component replacements, O&M is crucial for long-term system health and optimal performance.
A PPA places your solar plant in the capable hands of an experienced team of engineers and technicians, relieving you of the burden of managing these details. Your dedicated solar management team actively monitors, manages and maintains the power asset to maximise its energy generation. And while they work behind the scenes to ensure your system performs at its peak, you focus on your core business.
Unpredictable energy bills can strain your budget. PPAs offer predictable electricity tariffs and guaranteed energy production, insulating you from abnormal price increases and ensuring cost certainty. This predictability allows for better financial planning and budgeting, allowing you to focus on growth and profitability.
With a PPA, the provider assumes the performance risk of the solar system. They guarantee a certain level of energy output, and if the system underperforms, they bear the financial responsibility. This risk-sharing model minimises your exposure to potential setbacks and provides peace of mind.
Of course, a PPA is an excellent way for a business to go solar without the upfront capital expenditure required to purchase a solar and/or backup energy system outright. But, while financing plays a part, much of the real value of a PPA lies in the ongoing expertise, support and peace of mind you receive from your provider. It’s a strategic decision that delivers clean, reliable energy while reducing risk and freeing up your valuable time and resources.
That’s why it’s also important that you choose the right PPA partner to embark on your renewable energy journey with. The Decentral Energy team has a proven track record of building and operating commercial solar PV and battery systems in South Africa. As the trusted partner to retail, residential and commercial property owners across the country, we have successfully handled everything from small residential complexes to large industrial parks for listed property groups.
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