As a small, medium and large business in South Africa, keeping costs down is a key to success and having the right solutions and setups are pivotal to obtaining and keeping that success. Finding the correct solar configuration to meet your business needs can give you the advantage. We do this by running an energy audit.

From 10kw to 500kW+

By accurately designing and specifying our solutions and customising a funding model that works for you we are able to maximise the benefits to you, both from an energy savings as well as engineering perspective, remember when going with a ZERO CAPEX MODEL, like we provide, you have none of the risks associated with operating, insuring and maintaining the plant, we handle all of this.

Importance of an Energy Audit:

We conduct an energy audit of your power requirements which includes the following items which we look carefully at:

  • Load profile and time of usage and
  • Energy Efficiency analysis.
  • Lights,
  • Computers,
  • Aircons,
  • Manufacturing and
  • Hot Water.
  • Lights,
  • Computers,
  • Aircons,
  • Manufacturing,
  • Insulation and
  • Hot Water.
  • Computers,
  • Lighting,
  • Air heating & Cooling,
  • Lighting and
  • Hot water from Solar & Heat Pumps.

We then look at the green renewable energy opportunities that are available for solar power generation.

We’ll analyse and prepare a business case for the proposed changes and help you calculate the payback period and create an implementation plan.

We finally draw up a letter of intent in order to secure finance and/or grants. Based on approval we then start our intervention and improvement plan.

Once complete we then continue to measure and verify that your business is getting the benefit.

The first step in the process of designing a solar power system is to perform an financial analysis to determine the financial feasibility of the project.

The Financial Analysis is a desktop exercise that can be conducted before a site meeting. The following information is required to start the study:

  • Electricity Bill – this will provide information on the electricity rates and the quantity of energy used.
  • Address – the address will provide the Google Map view to determine the size of the solar system that can be accommodated on the exiting roof.
  • Profile Graph – Ekurhuleni municipality has a digital billing system for all their business customers. A detailed graph is available that plot the usage profile over time. Some of the other municipalities also has this information available.

The profile graph provide the following information:

  • Peak Demand
  • Baseload Demand
  • Demand at 12:00

The result of the financial analysis will be a table with all the important financial indicators to support the investment decision:

  • IRR: Internal Rate Return
  • NPV: Nett Present Value
  • Yield
  • Payback Period

Electricity will cost you an average of R 0.16 / kWh for the next 25 years with a Solar power system! Eskom power will cost you an average of R 2.99 for the same period!

From 1 January 2016, a little-known amendment to Section 12B of the Income Tax Act (Act 58 of 1996) allows for depreciation in the year of commissioning of the full (100%) cost of a grid-tied solar PV system of less than 1 MW used for electricity generation by a business in the course of its operations.

The capital depreciation allowances for solar PV systems greater than 1 MW remained unchanged in the January 2016 amendment to the legislation, which continues to allow full depreciation over three years. This permits depreciation of 50% of the capital cost in the year of commissioning, 30% in the subsequent year, and 20% in the third year.

The accelerated depreciation allowance for solar PV systems applies whether they are installed for the business by contractors or developers, or paid for by the business in a credit sale agreement (as defined in Section 1 of the Value-Added Tax Act) – either upfront in a single payment or in multiple payments over an extended period.

The cost of the solar PV system allowed for accelerated depreciation includes its full direct capital cost, including design and engineering, project planning, delivery, foundations and supporting structures, solar PV panels, AC inverters, DC combiner boxes, racking, cables and wiring, and installation. Finance costs are excluded.

This allowance was confirmed in a binding private ruling by SARS dated 11 October 2018 (BPR 311) in respect of an application by a private company in South Africa to clarify the deductibility of the capital expenditure incurred to install solar PV systems at a number of sites owned and leased by the applicant. The systems were being installed to reduce the company’s electricity costs.

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