Amidst ongoing power supply issues, solar power has become a viable, if not essential, option for business in South Africa. With many businesses seeking cost-effective, reliable alternatives to the unstable national grid, SolarSaver has become a major success story. The solar energy company now manages over 650 self-financed installations across South Africa, Namibia and Botswana, the largest fleet of commercial solar photovoltaic (“PV”) systems in the Southern African region.
While most of SolarSaver’s business was initially in Namibia, substantial investment backing from the Pembani Remgro Infrastructure Fund (PRIF) in 2017, a US$302 million private equity fund established by Remgro Limited and Phuthuma Nhleko, allowed the company to aggressively grow its South African portfolio.
RMB Corvest then came on board in 2022 as the main investor behind Sedgeley Energy, the exclusive provider of engineering, procurement and construction (“EPC”) and maintenance services to SolarSaver. “The partnership with RMB Corvest enables us to reach more potential customers and expand our operations,” says SolarSaver Managing Director Tim Frankish. “With their support, we have continued to innovate and offer affordable solar solutions to a wider market.”
The business has taken a unique approach: offering its clients solar photovoltaic solutions on a rent-to-own basis, eliminating the need for any capital investment on the part of clients and allowing them to pay only for the greener power produced. This ‘hassle-free, capex-free’ concept has proved extremely popular and addressed the barrier of large capital investment for solar system ownership. SolarSaver effectively operates as an independent power producer, leasing high-quality solar PV systems to clients who seek to reduce their reliance on the grid and harness renewable energy. SolarSaver owns and manages the solar system on a term agreement.
However, with the instability of load shedding and power outages across South Africa, consistent power supply is also a priority. SolarSaver now offers both grid-tied and hybrid solar systems. Existing clients are able to add batteries to their grid-tied systems, and new clients can install hybrid solutions from the outset. Clients have the option of set monthly fees, or outright purchase of the hybrid solar systems.
“We’re now providing existing and new clients with 24-hour power solutions through fully-financed, customised solar-battery systems,” says Frankish. “We have steered clear of expensive quick-fixes and focused on long-term solutions. We believe that by partnering with businesses and investing with a long-term view, we can provide a real alternative to Eskom.”
SolarSaver has a range of clients across various sectors, from retail to manufacturing, fuel to food processing, agriculture to hospitality. Large commercial and residential developments also form part of the portfolio. The majority of these businesses have grid-tied systems, and most clients have reduced their reliance on grid power by up to 30%.
With South Africa’s electricity prices increasing by over 450% in the last decade, installing grid-tied solar has been a ‘no-brainer’ for these businesses, says Frankish. “SolarSaver tariffs are significantly cheaper than the equivalent cost of grid power, so clients start saving on their electricity bills from day one. Rates then only increase in line with CPI inflation, so clients’ savings grow each year as grid tariffs increase significantly beyond that,” explains Frankish. “SolarSaver also remains responsible for all ongoing monitoring, maintenance and insurance. It’s in our interest to ensure that the photovoltaic systems are operating at peak performance and that translates into better savings for our clients.”
Frankish says that even if the cost of a full battery system is prohibitive, businesses are taking a long-term view. Installing a solar solution means businesses reap immediate cost-saving benefits with no capital cost, as well as having the potential to link batteries to the system that is already in place in the future.
SolarSaver is paving the way for a cleaner, greener future, providing tailored grid-tied or hybrid solar installations that make solar power more accessible and affordable for businesses across Southern Africa.