The commercial rooftop solar photovoltaic (PV) market is growing rapidly in South Africa. Solar systems provide an ideal solution for commercial landlords looking to reduce electricity costs, go green, and offer tenants a more sustainable option.
Besides the cost benefits of solar, forward-thinking landlords, retailers and property developers are catching up with international counterparts in seeing the potential to use solar installations to help attract and retain tenants, according to Lance Green of solar solutions company SolarSaver. “Studies show that prospective tenants often prioritise buildings with eco-friendly features, high energy efficiency and similar attributes. Tenants are increasingly conscious of their carbon footprints and greener buildings regularly attract higher rentals. Solar installations allow landlords to pass utility cost savings to their tenants, in addition to providing them with an attractive, eco-friendly offering.”
Since inception in 2016, SolarSaver has rapidly expanded operations with strong demand for solar from the retail and mixed-use property developers. “Of the 700 solar installations currently managed by SolarSaver in South Africa, Namibia and Botswana, over 40% are for retail operations,” says Green.
The company has grown through a unique rent-to-own model, through which businesses pay only for the greener, less expensive energy produced without capital investment in the solar system. Clients also have the option of installing hybrid solar systems including batteries, which provide power during load shedding and outages, eliminating expensive generator costs.
SolarSaver has been working with Pareto Group since 2019, helping the property group to achieve carbon reduction goals and reduce electricity costs at its premium malls nationwide, with phased installations. From 50KwH to 6MW, Pareto installations are all based on a Power Purchase agreement with SolarSaver through the company’s compelling rent-to-own solution.
Melrose Arch
Johannesburg’s award-winning mixed-use precinct Melrose Arch is home to high-end retail stores, restaurants, offices, gyms and hotels. With more than 16 systems totalling over 3,281.80 kWp within Melrose Arch, the precinct is now even more eco-efficient, reducing both its energy costs and carbon footprint. The systems are forecast to generate over 5 million kWh per annum for the precinct. Under a 20-year power purchase agreement (PPA), Melrose Arch pays only for the greener energy produced.
“The increase in electricity costs and the unreliability of the local grid are pressing concerns for retail operators and their tenants. Developers further need systems that can be installed with minimal disruption to tenants, and without investing large amounts of capital,” says Green.
Other retail groups that benefit from SolarSaver-managed installations include Lynx Real Estate, AJ Property Holdings, Spar, BBB Properties and K Carrim Holdings.
Spar at Tiffany’s
As grid-tied solar does not offer protection against load-shedding, adding batteries to the installation is the logical next step for many of these businesses. SolarSaver’s hybrid solutions, which enable batteries to be added to grid-tied installations, are also in high demand. “We offer these options on a monthly cost model, retaining ownership and management of the systems. Clients also have the option of purchasing systems outright. Our aim is to provide flexible solutions that a wide range of businesses harness the power of the sun.”