Zero Upfront

Solar Power Purchase Agreement — R0 Upfront, Immediate Savings

A Power Purchase Agreement (PPA) is the simplest way for a South African business to access the savings of solar energy without the capital cost of purchasing the system.

Under a Panyanru Solar PPA, we fund, install, own, and maintain a solar system on your premises — entirely at our cost. In return, you purchase the electricity the system generates at a fixed tariff that is guaranteed to be lower than your current Eskom rate for the duration of the 20-year agreement.

You start saving from Day 1, with no capital outlay, no maintenance responsibility, and no risk.

PPA vs Purchasing Solar — The Key Differences

Feature EPC Purchase (You Buy) PPA (Panyanru Solar Funds)
Upfront capital cost R1.5M–R12M+ R0
Equipment ownership You own immediately Panyanru Solar owns for PPA term
Maintenance responsibility You (or separate O&M contract) Panyanru Solar — fully included
Benefit from Day 1 After capital recovery (3–5 years) Yes — from first invoice
Section 12B tax benefit Yes — significant deduction Year 1 May apply to some components (consult your tax advisor)
Best for Capex-rich businesses; owned property; large systems Businesses with limited capex; focus on core operations; monthly bill above R80,000
20-year electricity cost certainty Dependent on Eskom tariff increases Fixed escalation rate (typically CPI+2%)

How a Panyanru Solar PPA Works — 8 Steps:

1 Free assessment: Our engineers assess your premises, review your electricity profile, and confirm whether a PPA is the right structure for your situation.
2 Proposal delivery: We deliver a detailed PPA proposal showing: system size, Year 1 PPA tariff, 20-year Eskom comparison model, and your projected annual and cumulative savings.
3 Heads of Agreement: Once commercial terms are agreed, we sign a non-binding Heads of Agreement to secure the project while finance and legal processes run in parallel.
4 Finance and legal: Panyanru Solar arranges project finance (typically DBSA Green Finance at preferential B-BBEE terms). Our legal team prepares the full PPA agreement for your legal team's review.
5 Financial close: PPA signed. DBSA loan executed. NERSA SSEG application submitted. Equipment ordered.
6 Installation: Panyanru Solar installs the full system at our cost. Typically 8–12 weeks from financial close to commissioning.
7 Commercial Operation Date (COD): System is commissioned and grid-connected. Your first monthly PPA invoice is issued based on actual metered generation.
8 20-year operation: Panyanru Solar monitors, maintains, and insures the system for the full PPA term. Monthly generation report issued to you. You pay the monthly invoice — nothing else.

Who Qualifies for a PPA?

Not every business qualifies for a PPA. The key criteria:

  • Monthly electricity bill above R80,000 (typically translating to a system above 300kWp)
  • Creditworthy occupier: JSE-listed company, national retailer, government entity, large manufacturer, or company with 5+ year trading history and clean credit record
  • Property tenure: own the building, or have a lease with at least 15 years remaining
  • Roof suitability: 800m²+ of unshaded, structurally sound roof, OR available ground area for ground-mount installation
  • Not in financial distress: Panyanru Solar's finance partners require a creditworthy offtaker

20-Year Savings Example — 500kWp System

Year PPA Tariff (R/kWh) Eskom Equivalent (R/kWh) Annual Saving Cumulative Saving
Year 1 R0.97 R1.38 R584,000 R584,000
Year 3 R1.12 R1.71 R718,000 R1.94M
Year 5 R1.22 R2.10 R880,000 R3.6M
Year 10 R1.41 R3.58 R1.52M R9.8M
Year 15 R1.63 R6.11 R2.60M R22.5M
Year 20 R1.88 R10.42 R4.44M R47.3M

Based on: 500kWp system, 22% capacity factor (Gauteng), 7.5% annual PPA escalation, 11.2% annual Eskom tariff escalation (MYPD5 average), 90% self-consumption ratio.

End-of-Term Options — What happens after 20 years?

Option 1: Extend

Extend the PPA for a further 5 years at a market tariff (typically significantly below Eskom by Year 20).

Option 2: Purchase

Purchase the solar asset from Panyanru Solar at depreciated replacement cost — you take ownership of a fully operational system.

Option 3: Remove

Panyanru Solar decommissions and removes the system at no cost to you. Roof is restored to its original condition.

See if your business qualifies for a PPA

Complete our 5-question qualifying form. Our team will respond within 2 business days with a preliminary eligibility assessment.

Check My PPA Eligibility →