Why solar power is the smart choice for South African businesses
South African businesses must consider switching to solar power, as it offers much better value for money than grid-supplied electricity.
Eskom electricity prices are only set to go up, as Eskom has asked the regulator NERSA for permission to raise prices to its direct customers by 36.15%.
Should NERSA approve this, South African businesses will see a huge increase in their monthly electricity bills.
Thankfully, investing in solar power through MetSolar is a cheaper alternative for your business.
MetSolar offers complete turnkey solutions, including engineering, procurement, construction, monitoring and maintenance – while your system pays itself off in three to five years.
MetSolar also offers several ways to fund your business’s solar solution – and you can choose the option that best suits your needs.
These options include buying a solar system for cash, financing your solar system, renting a solar system, or entering into a power purchase agreement.
We detail each of these options, below.
Cash purchase
A cash purchase gives you the best return on your investment and provides full ownership of your solar system from day one.
With a cash purchase, you are also eligible for the SARS 12B Tax Incentive – as well as accelerated depreciation of 125% for the first year.
Your purchase comes with a service level agreement with MetSolar, too, covering all operational and maintenance requirements.
Asset finance
MetSolar is an approved supplier to many South African finance providers – including Standard Bank, WesBank, Recharge by Investec and others, who offer custom finance models to fit each client’s needs.
These finance products are available in up to 10-year terms, and you can recover the VAT on the full system cost at the start of the loan agreement.
Your business is also eligible for accelerated depreciation of 125% in the first year – and you will receive a service level agreement with MetSolar for all operational and maintenance requirements.
Leases and rentals
Lease and rental agreements are available at a low fixed monthly payment.
These agreements can include zero-down financing options, as well as the ability to rent-to-own.
The rental payments are fully tax deductible, and can be fixed or escalating depending on your preferred payment structure.
MetSolar and its partners can work with your organisation to replace or upgrade ageing technology over the course of your rental period, too, while buyout options are also available.
Power purchase agreement
MetSolar has relationships with leading independent power producers who can offer your business agreements to buy cheaper, more reliable solar power.
There are zero-down finance options available, as well as up to 20-year payment terms – with operational, maintenance, and insurance all included in your agreement.
With these agreements, you only pay for the energy you use and the per kWh rate is up to 50% cheaper than standard Eskom tariffs.
Furthermore, there is a fixed annual escalation that is much lower than Eskom’s requested tariff increases.
Click here to learn more about how MetSolar can help your business.
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