Solar PV for businesses in the Western Cape

The document outlines the economic drivers and practical implementation of solar PV for businesses in the Western Cape, noting that systems can reduce electricity costs by up to 16% with payback periods typically between 3 and 8 years. It details three financing models—self-funded, bank-funded, and power purchase agreements (PPAs)—and lists the municipalities in the province that support small scale embedded generation (SSEG). Additionally, it highlights available tax incentives, such as 100% accelerated depreciation, and the Western Cape government's goal to reach 135MW of rooftop PV capacity by 2020.

• Solar PV installations for businesses in the Western Cape can reduce electricity costs by up to 16%, with typical payback periods ranging from 3 to 8 years. A 100kWp system is modelled to achieve a payback period of approximately five years, potentially providing 15-20 years of free energy given an average system lifespan of 20-25 years.
• The financial viability of solar PV is influenced by several factors, including installation size, technology choice, exchange rates, location, roof type, financing models, current electricity tariffs, and consumption patterns. Economies of scale make larger systems more viable; for example, systems over 500 kWp cost between R10,500 and R13,000 per kWp, whereas systems under 100 kWp cost between R13,500 and R16,000 per kWp.
• Three primary financing options are available in South Africa: self-funding, bank-funded loans (covering 70-100% of capital costs over five to ten years), and Power Purchase Agreements (PPAs). PPAs involve zero upfront costs for the buyer, who instead pays a predetermined rate per kWh, serving as a hedge against Eskom electricity price hikes.
• The Western Cape government has set a target to increase rooftop PV contribution to the provincial electricity supply to 135MW by 2020. As of Q2/2017, the installed solar PV capacity in the region was 38MW.
• Various incentives are available to reduce the cost of solar PV, including VAT deductibility for registered entities, the Green Tourism Incentive Programme (offering grants up to R1m for small tourism businesses), and tax benefits such as 100% accelerated depreciation in the first financial year (Tax benefit 12b), which effectively acts as a 28% discount.

APA

Radmore, J.-V., & Chilwan, S. (2017). Solar PV for businesses in the Western Cape. GreenCape. https://greencape.co.za/assets/Uploads/Industry-Brief-Solar-PV-FINAL-WEB-CORRECT.pdf

Chicago

Radmore, Jack-Vincent, and Seraj Chilwan. Solar PV for businesses in the Western Cape. GreenCape, 2017. https://greencape.co.za/assets/Uploads/Industry-Brief-Solar-PV-FINAL-WEB-CORRECT.pdf.

Wikipedia

{{cite report |last1=Radmore |first1=Jack-Vincent |last2=Chilwan |first2=Seraj |title=Solar PV for businesses in the Western Cape |publisher=GreenCape |date=2017 |url=https://greencape.co.za/assets/Uploads/Industry-Brief-Solar-PV-FINAL-WEB-CORRECT.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{radmore2017solar, author = {Radmore, Jack-Vincent and Chilwan, Seraj}, title = {{Solar PV for businesses in the Western Cape}}, institution = {GreenCape}, year = {2017}, url = {https://greencape.co.za/assets/Uploads/Industry-Brief-Solar-PV-FINAL-WEB-CORRECT.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }