Funding Models

How to pay for solar — or not

Whether you have capital to invest or want zero upfront cost, there's a model that works for your business. As an approved supplier on both Standard Bank and Nedbank panels with VAF facilities, we'll help you choose the right structure.

Most Popular

Funded Solar / PPA

Zero capital outlay. Pay for energy at a discounted rate.

No upfront investment
Immediate savings
Full O&M included
Off-balance sheet
25-year price certainty
Own the asset
Maximum long-term savings

Best for: Businesses that want savings without capex

Energy Lease

Fixed monthly payments. Predictable energy costs.

No upfront investment
Immediate savings
Full O&M included
Off-balance sheet
Fixed monthly cost
Own the asset
Maximum long-term savings

Best for: Budget-conscious businesses wanting predictability

Capex Purchase

Buy the system outright. Maximum long-term returns.

No upfront investment
Immediate savings
Full O&M available
Own the asset from day 1
Maximum ROI over lifetime
S12B tax incentive eligible
Fastest payback period

Best for: Businesses with available capital wanting maximum returns

Live Savings Calculator

See your numbers in 5 seconds

Slide to your monthly bill and operating hours — we’ll show you indicative system size and savings. The detailed site-specific report arrives by email.

R200k
R50kR2M
12 hrs
6 hrs24 hrs

System size

185 kWp

Monthly saving

R22k

Year 1 saving

R270k

25-year saving

R51.3M

Indicative figures only. Assumes a typical commercial tariff of R2.80/kWh, PPA rate around R1.90/kWh, and South African solar yield of 4.5 kWh/kWp/day. Actual savings depend on your site, load profile, roof condition and prevailing tariffs.

Get the detailed report

Site-specific savings, in your inbox

We’ll model your specific site, tariff and load profile — not the slider averages — and email the full report within 24 hours.

  • Detailed report emailed within 24 hours
  • Free, no-obligation feasibility review
  • Your details stay with SolarXgen — never shared

Frequently Asked Questions

What is the minimum site size for funded solar?

Funded solar typically requires a minimum monthly electricity spend of R100,000+ and a suitable roof or land area. Smaller sites may still qualify — contact us to discuss.

How does the S12B tax incentive work?

Section 12B of the Income Tax Act allows businesses to deduct 100% of the cost of qualifying renewable energy assets in the first year. This applies to capex purchases and significantly improves ROI.

Can I switch from funded to owned later?

Yes. Most PPA and lease agreements include a buyout option after a defined period, typically at a pre-agreed residual value.

What escalation rate applies to PPAs?

Typically 5-7% annually — significantly below the 10-15% municipal tariff increases we've seen in recent years.

Do I need to change my Eskom or municipal account?

No. Your existing supply agreement stays in place. Solar supplements your grid supply — you only draw from the grid what solar doesn't cover.

Not sure which model is right?

Run the live calculator above for indicative numbers, or send us your site details — we'll model all options and email the full report.