finance

Power Purchase Agreement

Baus Power undertakes the installation, ownership, and operation of solar PV facilities, delivering solar energy to corporate clients.

Businesses can adopt solar Power Purchase Agreements (PPAs) to finance and maintain their solar energy systems without any upfront investment, immediately benefiting from cost savings.

The undeniable cost savings and reliability of solar PV solutions are prompting businesses to capitalize on these advantages through Power Purchase Agreements.

By opting for solar finance options, businesses can bypass initial purchase and installation expenses, while still enjoying the benefits of clean energy, contributing to a sustainable future.

A commercial solar PPA facilitates the installation of an integrated solar photovoltaic system, featuring a customized monthly payment plan. PPAs may also include the option to take ownership of the system after the financing period, with no upfront installation costs. Payments under a PPA are based solely on the energy generated by the system during daylight hours.

The specifics of power purchase are delineated in the PPA or solar lease, which is negotiated individually with each client to ensure a mutually beneficial agreement. For many clients, solar costs are lower than those of electricity from the national grid.

In South Africa, with the decreasing costs of solar equipment and escalating electricity tariffs, it is anticipated that large-scale solar facilities will offer power at costs lower than Eskom’s lowest bulk tariff from 2019 onwards, making solar a compelling option for all energy-intensive clients to consider

This structure shields businesses from fluctuations in utility tariff increases, enabling precise predictions and budgeting for energy costs. With a solar Power Purchase Agreement (PPA), clients benefit from a fixed rental escalation, providing flexibility through buy-out options and the ability to relocate the system to another property if needed. Additionally, the absence of installation costs allows for optimal sizing of the solar system, potentially paired with batteries to further reduce demand charges. PPAs typically span 10 to 20 years.

Baus Power’s technical experts handle the design, installation, and maintenance of financed solar systems, ensuring optimal operation and continuous monitoring. This allows businesses to focus on their core activities while benefiting from a competitive and sustainable energy solution..

  1. Deployment of a comprehensive solar photovoltaic (PV) system.
  2. Elimination of upfront expenses.
  3. Instantaneous cost savings.
  4. Absence of supplementary maintenance or insurance expenses.
  5. Assurance of consistent energy costs in the future.
  6. Enduring reductions in electricity expenses.
  7. Mitigation of the property’s carbon emissions.