SA-based SOLA Group has received US $26.1 million from African Infrastructure Investment Managers (AIIM), and Nedbank Energy Finance.
The firm, founded in 2008, will put this money to use to build affordable solar PV solutions for individuals and businesses in South Africa.
Customers will no longer have to pay upfront for installation of the panels.
SOLA Group’s main operations are building, installing solar energy infrastructure. They also own and operate solar PV facilities, from which they sell solar energy to corporate clients and utilities through solar Power Purchase Agreement (PPA).
The PPA allows businesses to pay off and maintain their own solar energy systems at no upfront costs, while enjoying the immediate benefit of cost savings.
Orionis, a renewable energy fund, will see SOLA Group build 40 MW of solar PV projects for its corporate clients as an alternative for electricity.
Chris Haw, SOLA Group chairperson, said, “This partnership brings together three highly experienced entities whose combined skills offer consumers clean energy solutions at a time when our country desperately needs it.”
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Solar PV power is a sustainable and environmentally friendly form of power; the cherry on the icing is that it is very cheap to procure.
However, setting up solar PV projects is a capital intensive process, hence the USD 26.1 million will go a long way in helping to sustain SOLA Group buy and own their PV systems, which drastically cuts their costs.
Mr. Haw adds, “Operating at scale allows SOLA to provide lower tariffs and more competitive rates, reducing costs of financing. The model of electricity generation that incorporates both centralised and distributed electricity will improve the ability for South Africa to meet energy demand, reduce electricity costs and strengthen resilience to outages.”
