27 June 2025
Article by Helandi Moolman, Green & You
To be fair – every single person and business in South Africa would have installed a solar system by now, if they had the financial capacity. Nobody is disputing the need for, or the benefits of solar – the issue is mostly budget. Even though solar components have seen a significant price drop (in some cases way over 50%) in the past years, it is still a sizeable investment to make. One that was not fathomable a few decades ago – when the phrases load shedding or even power outages did not exist in the common vocabulary.
Luckily solar does not need to stay a grudge purchase. When investing in the right solar system – there are definite gains in the form of payback, autonomy etc.
Still – that does not solve the HOW. We all agree on the WHAT (get solar for your home and business), but we are stuck regarding the financing.
The good news? There are options. Quite a few actually.
Commercial Solar Financing Options:
Banks Solar Asset Financing – available at the major banks, accredited installers are vetted by the banks to provide you even more peace of mind and to protect your investment. Good payback (return on investment) can be seen with financing.
Private Solar Asset Financing – many financial institutions offer solar asset financing as well, also with good payback.
Refinancing of Solar Assets – Standard Bank, for example, offers refinancing on existing solar systems. If your company installed a solar system without using financing, they can now finance the system after-the-fact. This is helpful for cash flow, expansion on your solar system or on regular business operations.
PPA via Private Companies (Power Purchase Agreement) – this option is jointly lower on the risk and return scales. A good solution if payback is not the main focus, but rather to eliminate future Eskom price hikes, unpredictable bills, and have no risk regarding the investment or its maintenance. The PPA company owns the solar installation, maintains it and sells the power back to you, usually at a pre-determined rate for 20 years.
Residential Solar financing options
Home Bond – a solar installation can be financed with your home when buying a property, or even added to the bond at a later stage. This is probably in most cases the most cost effective (lowest interest rate) option for individuals.
Private Loan – not dependent on owning a property or having a home bond, but usually at a higher interest rate.
Energy/Renewable Loan– some banks offer a form of Energy Loans, that might offer better interest rates than private loans.
Landlord – tenants can also discuss terms and options with their landlord for solar installations, since data shows that solar installations can increase the value of your property and increase its rentability.
These are a few of the HOW options – now you can start planning your WHAT.