Sola Group has raised ZAR 400 million to finance solar PV facilities in the C&I segment across South Africa. (Photo Credit: The Sola Group)
- Sola Group of South Africa has raised ZAR 400 million to develop 40 MW of solar PV capacity in the country
- The Nedbank and AIIM proceeds will be used to build solar facilities for C&I customers without requiring capital expenditure from electricity offtakers
- Initial pipeline includes 15 MW worth of PPAs with several breweries and other industrial facilities, according to the Sola Group
South African solar power company Sola Group has raised ZAR 400 million ($26 million) to build 40 MW of solar PV capacity without the need for electricity off-takers. It will use the proceeds to build commercial and industrial (C&I) PV facilities across South Africa.
The money has been raised under a partnership between the Sola Group with the African Infrastructure Investment Managers (AIIM) and Nedbank Energy Finance and will be placed in Sola Group’s Orionis Fund.
“This partnership brings together three highly experienced entities whose combined skills offer consumers clean energy solutions at a time when our country desperately needs it,” said Sola Group Chairman Chris Haw.
South African news portal IOL said the 40 MW projects will be located in cities like Johannesburg, Ekurhuleni, Nelspruit, Polokwane, Durban, Cape Town and Port Elizabeth.
The fund has a confirmed pipeline of 15 MW with power purchase agreements (PPA) with several breweries and other industrial facilities in the country. End consumers will pay for use of the clean power from these projects which is still some 20% lower than what they pay to national utility Eskom or other municipal providers.
The South African company will finance, design, construct and operate the projects.
Clients will be able to reduce their operating costs and bring down carbon emissions with the help of solar power, Sola Group said. It estimates an addition of 880 jobs in the coming years with the construction of the fund’s 40 MW.