Using solar PV to achieve decarbonisation goals without upfront capital

Mediclinic implemented solar PV across 29 hospital sites, using a PPA model for 10 sites, including Durbanville Hospital, to avoid upfront costs. The Durbanville installation, commissioned in November 2021, consists of a 704.6 kW (DC) system that produces approximately 1.17 GWh of green electricity annually, offsetting about 1,076 tons of carbon emissions. The 25-year take-or-pay PPA provided immediate savings, with initial electricity prices approximately 60% lower than municipal rates. The document highlights the benefits of PPAs for operational de-risking and financial hedging against rising grid costs, while recommending clear maintenance responsibilities and sector-specific provider experience for similar projects.

• Mediclinic utilized a dual funding model for solar PV across 29 hospital sites based on a 17% internal rate of return (IRR) threshold: sites meeting this threshold were funded via internal capital, while those that did not proceeded under a Power Purchase Agreement (PPA).
• The solar PV installation at Durbanville Hospital, commissioned in November 2021, has a system size of 704.6 kW (DC) / 650 kVA (AC) and generates roughly 1.17 GWh of green electricity per year, which offsets approximately 1,076 tons of carbon emissions.
• The Durbanville Hospital PPA is a 25-year take-or-pay contract with a 6% annual escalation; it provided immediate financial benefits as the initial electricity price was about 60% lower than the municipal rate.
• To avoid excess generation and 'deemed energy' (electricity payable under the PPA but not consumed), the system was conservatively sized for baseload rather than maximum demand.
• The document identifies five key considerations for replicating this model: clearly defining maintenance responsibilities, including performance and reporting clauses, ensuring contractual flexibility via buy-out clauses, selecting providers with sector-specific experience, and addressing renewable energy certificates (RECs) during contracting.

APA

GreenCape (n.d.). Using solar PV to achieve decarbonisation goals without upfront capital. https://greencape.co.za/wp-content/uploads/2026/03/GEER-Case-study_Mediclinic_2026_digital.pdf

Chicago

GreenCape. Using solar PV to achieve decarbonisation goals without upfront capital. n.d. https://greencape.co.za/wp-content/uploads/2026/03/GEER-Case-study_Mediclinic_2026_digital.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Using solar PV to achieve decarbonisation goals without upfront capital |url=https://greencape.co.za/wp-content/uploads/2026/03/GEER-Case-study_Mediclinic_2026_digital.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencapendusing, author = {{GreenCape}}, title = {{Using solar PV to achieve decarbonisation goals without upfront capital}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2026/03/GEER-Case-study_Mediclinic_2026_digital.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }