FINANCE SOLUTIONS

FINANCIAL MODEL
AGREEMENT OVERVIEW

FINANCIAL MODEL

Similar to a lease or rental agreement Renu Solar with its funding partners offers the market a unique power purchase agreement (PPA). A PPA allows a business to benefit from solar energy without the upfront costs of buying the system. The model is a cash generative from day 1. The concept in the model is power is purchased on a per Watt basis not dissimilar to how Eskom currently charges for power. The ideology and approach is to produce power cheaper than Eskom whilst simultaneously servicing the debt component of the solar system. In essence you can pay less for your power and pay off a system for a set period. Once the debt component is paid off, the power is then free and the exponential savings on electricity begins. This model is made available through both commercial banks and exclusive funding lines available to Renu Solar. The model is both flexible and bespoke to suit your requirements.

AGREEMENT OVERVIEW

Renu Solar makes power purchase agreements simple, logical and risk free. The model is unique as the system is owned by the client from day one. Renu Solar takes full operational risk on solar performance, with an electricity supply agreement recovering the costs of the system on a per watt basis. In the unlikely occurrence of the system not producing power, the time taken to rectify the fault will not exceed the initial agreement terms, making the only risk lying with the customer that of not benefiting from the discounted supply of energy whilst the system is inactive. The agreed new tariff is escalated annually by a fixed component, which allows planning and avoidance of tariff escalation above inflationary levels.

AGREEMENT EXAMPLE

25%

Cheaper power than your utility*

163

163 trees worth of CO2 saved

R 6 442 111

saved over 25 years

KEY TERMS

10.0

10 Year term

R 1.93

R 1.93 is your new electricity tariff*
(with 5.6% fixed escalation)

R 0.00

R 0 net upfront investment**

SOLAR DETAILS

59 kWp

59 system size (kWp)

56,626

kWh generated per year

R 724,311

Cost to build***
(excl VAT)

  • Renu Solar takes operational risk.
  • 5 – 13 year contracts.
  • Tier one equipment.
  • Simple contracts.
  • Maintenance and system performance by Renu Solar.
  • Exclusive funding lines.
  • The installation is owned by the customer.

The graph below illustrates the model with the PPA component indicated in blue. This portion highlighted in the graph, includes paying the debt component of a system. As one can see, the total cost of electricity, including serving the debt is often cheaper from Solar than current Eskom rates. 

This often sounds too good to be true, but understanding the improvement in solar technology and the steady decline of pricing, has now made solar financially viable on a commercial scale.

Let Renu Solar asses your office, building, shop, factory, and warehouse and start saving today and doing your part for the environment.