Using solar PV to achieve decarbonisation goals without upfront capital

This case study examines how Mediclinic deployed on-site solar PV at its Durbanville Hospital using a Power Purchase Agreement (PPA) to achieve decarbonisation goals without upfront capital investment.

• Mediclinic aims for carbon neutrality by 2030 and implemented solar PV across 29 hospital sites. The funding model was determined by a 17% internal rate of return (IRR) threshold: sites meeting this threshold were funded via internal capital, while those that did not used PPAs.
• The Durbanville Hospital installation is a grid-tied rooftop solar PV system commissioned in November 2021. It has a system size of 704.6 kW (DC) / 650 kVA (AC) output and produces approximately 1.17 GWh of green electricity annually, offsetting about 1,076 tons of carbon emissions.
• The PPA for Durbanville Hospital is a 25-year take-or-pay contract with a 6% annual escalation. This structure provides revenue certainty for the project owner but requires alignment between system sizing and demand to avoid 'deemed energy'—electricity that is payable under the PPA but not consumed on-site.
• The system provided immediate financial benefits, with the initial electricity price being approximately 60% less than the municipal rate. Savings have increased annually because municipal electricity price increases have exceeded the PPA's 6% escalation.
• To further decarbonisation, Mediclinic is exploring micro grid solutions with Battery Energy Storage Systems (BESS) for sites including Durbanville. This would allow excess solar generation to be stored and deployed, enabling the installation of greater solar PV capacity.

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} }