Alternative energy sources for businesses
Energy demand saw the return of load-shedding in South Africa. As
power utility Eskom turned, businesses are looking for ways to lessen
their dependence on the beleaguered national power provider.
“The long-term risk to business continuity and sustainability is very
concerning. Business owners cannot afford to sit on their hands and
trust that government will resolve the situation, especially when
alternative options are becoming more readily available,” says Tim
Frankish, managing director of international solar energy company
SolarSaver.
Electricity prices in South Africa have increased by over 350%
in the past decade and a plethora of solar businesses have sprung
up in response, but few offer solutions that don’t require major
upfront capital investment. “Many business owners are reluctant
to allocate millions of rands of capital expenditure to purchase a
solar installation, when that capital could be used to grow their core
businesses,” said Frankish. In response, SolarSaver takes a different
approach: offering its clients solar photovoltaic solutions on a rent-
to-own basis, eliminating the need for any capital investment on
the part of clients. Customised systems are designed and installed
free-of-charge, and clients then only pay for the cheaper, ‘greener’
power that is produced.
SolarSaver is, however, quick to point out that their core offering
doesn’t yet solve the problem of load-shedding: “Standard, grid-tied,
solar photovoltaic systems cannot operate when there is no grid
availability, for example during load-shedding, for many technical
reasons, but those systems are still a great first step for any business
looking to reduce its dependence on Eskom,” suggested Frankish.
The concept has proven extremely popular, and SolarSaver now
manages the largest fleet of self-financed rooftop installations in
southern Africa. Much of SolarSaver’s initial growth was in Namibia,
but the group is now increasingly focused on the South African
market, thanks in large part to substantial investment backing from
the Pembani-Remgro Infrastructure Fund (PRIF), a USD435-
million private equity fund established by Phuthuma Nhleko and
Johann Rupert, which focuses on infrastructure and energy-related
investments in Africa. “The investment by PRIF gives us the ability
to substantially grow our portfolio in South Africa on a sustainable
basis. It’s very exciting,” added Frankish. b