Rooftop rental agreements as a green finance mechanism for solar PV

This case study by GreenCape examines the application of a power purchase and rental agreement (PP-RA) model to finance a 250.8 kW solar photovoltaic (PV) system for a Pick n Pay retail outlet in Brackenfell, Cape Town. The model allows a solar developer to finance, install, and maintain the system on a property owner's roof in exchange for rental payments, while the tenant purchases the generated electricity via a Power Purchase Agreement (PPA).

• The power purchase and rental agreement (PP-RA) model enables solar PV installation by having a developer finance, install, operate, and maintain the system on a property owner's roof. The property owner receives rental income, and the tenant purchases electricity through a PPA with a tariff typically designed to be similar to the distribution utility's rate with linked increases.
• A 250.8 kW solar PV system installed by Decentral Energy at Pick n Pay in Brackenfell, Cape Town, covers 22.12% of the outlet's yearly electricity consumption, generating 287 348.16 kWh against a total consumption of 1 298 789.14 kWh.
• The financial terms for the Pick n Pay Brackenfell project include a starting PPA rate of R1.6 / kWh (compared to a municipal tariff of R1.98 / kWh) with an annual escalation of CPI + 3% over a 20-year contract term. The arrangement generates a monthly roof rental income of R15 666.68 and monthly electricity savings of R 2 959.68.
• Based on a 2021 Eskom estimated electricity grid emission factor for South Africa of 1.06 kg CO2e/kWh, the Brackenfell installation reduces the outlet's carbon footprint by 22.12%, saving 304 588 kg CO2e per year.

APA

Poorun, A., & Reddy, P. (n.d.). Rooftop rental agreements as a green finance mechanism for solar PV. GreenCape. https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Energy-3_-Rooftop-solar-PV-as-a-green-finance-mechanisms-PnP_Case-Study.pdf

Chicago

Poorun, Argon, and Prian Reddy. Rooftop rental agreements as a green finance mechanism for solar PV. GreenCape, n.d. https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Energy-3_-Rooftop-solar-PV-as-a-green-finance-mechanisms-PnP_Case-Study.pdf.

Wikipedia

{{cite report |last1=Poorun |first1=Argon |last2=Reddy |first2=Prian |title=Rooftop rental agreements as a green finance mechanism for solar PV |publisher=GreenCape |url=https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Energy-3_-Rooftop-solar-PV-as-a-green-finance-mechanisms-PnP_Case-Study.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{poorunndrooftop, author = {Poorun, Argon and Reddy, Prian}, title = {{Rooftop rental agreements as a green finance mechanism for solar PV}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Energy-3_-Rooftop-solar-PV-as-a-green-finance-mechanisms-PnP_Case-Study.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }