Executive decision-makers’ guide to investing in renewable energy 2025

The 'Executive decision-makers’ guide to investing in renewable energy 2025' by GreenCape provides a strategic framework for South African businesses to transition to renewable energy. It details the differences between embedded generation and wheeling, outlines various financing models and bank-specific instruments, and explains the role of backup storage in enhancing energy resilience. The guide also lists available tax incentives and identifies systemic hurdles such as grid constraints and a dynamic policy environment.

• Private procurement of renewable energy in South Africa has increased due to regulatory changes in 2022/23, with solar PV leading the market because of its lower cost, scalability, and shorter implementation timelines.
• Businesses can implement renewable energy via embedded generation (on-site installation like rooftop solar) or wheeling (procuring energy from remote plants via a transmission network). Wheeling is suitable for high-demand profiles and does not require on-site space, but it does not protect users from loadshedding.
• The guide outlines four primary financing models: outright purchase (full ownership and savings), debt finance (commercial loans over 5-10 years), lease-to-own (fixed monthly payments for 10 years), and Power Purchase Agreements (PPA), where the provider owns the asset and the customer pays for energy units at a rate lower than the utility tariff for 10-20 years.
• Major South African banks offer specific renewable energy instruments: ABSA provides the Bounce back solar loan (BBSL) and African Rainbow energy and power platform (AREP); FNB offers ecoEnergy Loans and alternative energy solutions (AES) up to R50 million; Standard Bank provides a Business solar loan (R10k - R10 million); and Nedbank offers 'Avo solar' and sustainability linked loans.
• Backup storage technologies provide benefits beyond loadshedding protection, including peak reduction/shaving to avoid demand charges, load shifting for time-of-use tariffs, and improved utilization of renewable installations. Li-ion batteries offer high efficiency and density but face lithium supply chain constraints and safety risks, while advanced lead acid batteries have lower upfront costs but shorter lifespans of 2-3 years.
• Several tax incentives are available to businesses, including Section 12B which allows a 100% depreciation allowance on qualifying renewable energy assets in the first year, and Section 12L which provides a deduction of 95c/kWh for verified energy efficiency savings.
• Implementation hurdles include a transmission and distribution grid not designed for new generation connections, which can lead to denied connections. Additionally, projects larger than 1MW typically face more legislative hurdles.

APA

GreenCape (2025). Executive decision-makers’ guide to investing in renewable energy 2025. https://greencape.co.za/wp-content/uploads/2025/05/Executive-decision-makers-guide-to-investing-in-renewable-energy-2025.pdf

Chicago

GreenCape. Executive decision-makers’ guide to investing in renewable energy 2025. 2025. https://greencape.co.za/wp-content/uploads/2025/05/Executive-decision-makers-guide-to-investing-in-renewable-energy-2025.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Executive decision-makers’ guide to investing in renewable energy 2025 |date=2025 |url=https://greencape.co.za/wp-content/uploads/2025/05/Executive-decision-makers-guide-to-investing-in-renewable-energy-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2025executive, author = {{GreenCape}}, title = {{Executive decision-makers’ guide to investing in renewable energy 2025}}, institution = {GreenCape}, year = {2025}, url = {https://greencape.co.za/wp-content/uploads/2025/05/Executive-decision-makers-guide-to-investing-in-renewable-energy-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }