How you pay for it
Rental
Benefits from day one, with no deposit. With no deposit or significant cash outlay, your solar solution can be rented at a fixed rate for a specified lease period. You enjoy the savings and the backup from the start, without investing capital, and the provider keeps the system running.
- Deposit
- None
- Monthly cost
- Fixed rental
- Who owns the system
- The rental provider
- Typical term
- 5 to 10 years
How a solar rental works
Under a rental, the solar PV system, and battery storage where it is included, is owned by a rental provider and installed at your property for an agreed lease period. You pay a fixed monthly rental, set in the agreement, for the use of the system. There is no deposit and no significant cash outlay, so the capital you would have spent stays in the business.
The difference from a PPA is how you pay. A PPA bills you per kWh for the solar energy you use, so the amount changes month to month. A rental is a fixed amount, regardless of how much the system produces in a given month. That makes budgeting simple, and it means the benefit of a sunny month, or of using more of the solar energy on site, is yours. It also means the system has to be sized correctly, which is why we start from your load profile.
Rental agreements are written so the provider keeps the system working. Maintenance, monitoring and repairs are normally part of the monthly amount, and the provider has every reason to keep the system in good order because it owns it.
Who pays for what
The rental agreement sets out the detail. A typical commercial rental divides responsibilities like this.
Installation
Paid for by the rental provider. You pay no deposit and no installation fee upfront.
Maintenance and repairs
Normally included in the rental for the full term, including the repair or replacement of failed components.
Insurance
Set out in the agreement. Some rentals include insurance; others ask you to add the system to your own policy. We will make sure you know which applies before you sign.
Monitoring
Remote monitoring is included, so faults are picked up and attended to without you having to find them.
Your monthly cost
One fixed rental, which may escalate annually by an amount stated in the agreement, plus your reduced utility account.
Benefits and trade-offs
Rental suits a business, farm or school that wants the savings and the reliability of solar without capital expenditure or a long-term financing commitment. It keeps cash and borrowing capacity free for the core operation. Because the provider maintains the system, there is very little for you to manage.
The trade-offs are worth being clear about. You never own the system unless the agreement offers a purchase option, so over the long run renting usually costs more than owning. You cannot claim the Section 12B allowance, because that benefit generally goes to the owner of the asset, which is the provider. The rental is normally treated as an operating expense of the business; how it appears in your financial statements depends on your accounting framework, so check with your accountant. And because the rental is fixed, your saving depends on the system being sized to energy you actually use.
What you need
The site
- A sound roof, carport or ground area with good solar exposure
- Ownership of the property, or the owner's consent and a lease that covers the rental period
- Reasonable access for the provider to inspect and maintain the system
The business
- Credit vetting by the rental provider, usually on financial and bank statements
- At least 12 months of electricity accounts, so the system is sized to your load
- Your backup requirements, if battery storage is part of the rental
From consult to a running system
SolarSkye structures the solution and works with the rental arrangement that suits you. The design and installation standard does not change because the system is rented.
- 01Consult & Site AuditWe review your accounts and load profile and assess the site, then size a system whose output you will use.
- 02Solution Design & DiscussionWe present the design and the indicative rental terms, side by side with what owning the system would look like.
- 03Vetting and agreementThe rental provider completes its credit check. You review the rental amount, escalation, term, insurance and end-of-term options before signing.
- 04Approvals & InstallationWe obtain grid-connection approval and any registration required, then our in-house team installs.
- 05Inspections & CommissioningThe system is tested, certified and commissioned, and the rental period starts.
- 06Monitoring & MaintenanceThe system is monitored and maintained for the term, so it keeps delivering the savings you are paying for.
Rental questions
How long is a typical rental term?
Commercial solar rentals in South Africa commonly run for 5 to 10 years. Some smaller systems are offered on shorter terms. The term affects the monthly amount, and we will show you the options.
What happens at the end of the rental?
Depending on the agreement, you can renew the rental, upgrade to a new system, buy the system at a value set in the contract, or have it removed by the provider. We make sure these options are clear before you commit.
How is a rental different from a PPA?
A PPA charges a tariff for each kWh of solar energy you use. A rental charges a fixed monthly amount for the use of the system, whatever it produces. Both need no capital outlay, and in both the provider owns the system.
Can I include batteries in a rental?
Yes. Battery energy storage (BESS) is often provided on a rental basis, either together with the solar PV or alongside a PPA for the solar component.
Is rental available for homes?
Yes. Rental is one of the simplest ways for a homeowner to get solar and backup power without a large upfront payment. The process is the same: we start with your usage and your roof.
Start saving without a deposit
Send us your recent electricity accounts and tell us about your site. We will size a system to your usage and show you what a rental would look like, alongside the other ownership models.
Power On!