PV Renting - an innovative financing tool for solar power
PV renting is an innovative financing option which allows schools, guest houses, public bodies, small and medium sized companies and many others to benefit from cheap and green solar power. Within the framework of the dena Renewable Energy Solutions Programme, maxx-solar energy PTY Ltd. has set up two PV renting pilot projects in Cape Town, a 20 kWp system at the Grimley School in Hout Bay and a 14 kWp system at the Atlantic Gold Guest House in Camps Bay demonstrating the financial viability of PV renting in South Africa.
PV renting means that one entity invests in a PV system (system owner) and rents the system to a second entity (system operator). The system operator uses the electricity and pays a monthly rent to the system owner. Furthermore, the system operator gets the option to buy the system after seven to twelfe years (similar to car leasing).
The PV-Renting concept includes the followings main steps:
1) A green investor (system owner) invests in a PV system which will be installed on the property of an electricity consumer (system operator), e.g. a school, household or company
2) The system owner rents the PV system out to the electricity consumer (system operator)
3) The system operator pays a rental fee per month and uses all the electricity produced by the PV system.
4) After seven to twelve years the system operator can buy out the system for a residual value of about R500 to R1500 per kWp installed and gets the electricity for free!
The PV Renting concept at a glance
Benefits of PV Renting
One main obstacle for the implementation of small-scale PV projects is the lack of sustainable financing tools. PV credits are hardly available, PV systems are not considered as assets for loans and thus credit assessments are complicated. But green investors who invest in PV systems know that a PV systems produces electricity for about 25 years and thus of course is an asset. The main advantages of PV renting are:
- Electricity consumers only undergo a simplified credit assessment.
- Everybody can get a PV system without investment.
- PV systems can substitute up to 80% of the Eskom electricity.
- Save up to 50% of the electricity bill.
- Fixed electricity price for the next 20 years.
- Contribute to save our planet for the next generation.
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