Rooftop rental agreements as a green finance mechanism for solar PV

The document details a green finance mechanism where a solar developer finances, installs, and maintains a rooftop PV system on a commercial property. The property owner receives rental income, while the tenant purchases the generated electricity via a Power Purchase Agreement (PPA). A specific implementation for Pick n Pay in Brackenfell, Cape Town, resulted in a 22.12% reduction in the outlet's carbon footprint and created a new annual revenue stream of approximately R188,000 for the property owner.

• The power purchase and rental agreement (PP-RA) model involves a lease where a solar PV developer finances, installs, operates, and maintains a system on a property owner's roof in exchange for paying the owner rental income. The property owner or tenant then buys the electricity through a PPA with tariffs typically designed to be similar to the distribution utility's rate.
• A 250.8 kW solar PV system installed by Decentral Energy for Pick n Pay in Brackenfell, Cape Town, generates 287,348.16 kWh annually, covering 22.12% of the site's yearly electricity 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.
• Based on a 2021 Eskom estimated grid emission factor of 1.06 kg CO2e/kWh, the Brackenfell installation saves 304,588 kg CO2e per year and creates an annual revenue stream of approximately R188,000.

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} }