A solar PPA for your business: no upfront cost for the system
ZenSolar's Power Purchase Agreement (PPA) is for businesses. A funder owns and runs the solar system on your roof. You pay only for the solar power you use, per kWh, at an agreed price that goes up each year.
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Does this sound familiar?
A PPA is one way to get solar power at your business without buying or financing the system yourself. We believe a business should be able to go solar without tying up its cash.
We help businesses with a steady, sizeable electricity bill get solar with no upfront cost for the system.
A funder owns the solar system on your roof. You pay only for the solar power you use, per kWh, at an agreed price that goes up each year. There is no upfront cost for the system itself.
ZenSolar's PPA is for businesses only. We do not offer a residential PPA. If you are looking at a home, see rent to own.
The funder, not ZenSolar, owns the system under a PPA. This split matters: it is part of why the funder, not your business, normally claims the Section 12B tax allowance, which we explain further down this page.
ZenSolar designs every system, matches you with a funder, and manages the installation, CoC and SSEG. A free energy assessment is the first step to seeing what a PPA could look like for your site.
And we can do the same for you.
Who a PPA suits
A PPA usually suits a business with a steady, sizeable electricity bill and roof or land space for a system: manufacturing, retail, offices, agriculture, and similar operations. If your business wants solar without the capital outlay of buying a system, and can commit to a long-term agreement, a PPA is worth looking at. If you would rather own the system, compare rent to own and cash in the table below.
Straight answers to the questions businesses ask first
Why sign for 10 years or more?
A PPA usually runs 10 years or more. It can be shorter, depending on the funder. A longer term is part of how you avoid paying for the system upfront: it gives the funder time to recover that cost through the power you buy. Ask the funders you talk to what the shortest term they will offer looks like for a site like yours.
What if the price goes up?
The price does go up each year. The rate is agreed up front and rises each year by an amount set in the agreement. Ask your funder how that increase works, and get the answer written into your agreement before you sign, not left open. Knowing this in advance lets your finance team plan for it, rather than being surprised by it later.
Can we buy it out or own it at the end?
Buying out a PPA early, and owning the system at the end of the term, are both possible with some funders, not with others. Ask which of these your agreement allows before you sign, and ask how any buyout amount would be worked out.
Questions to ask before you sign a PPA
Take this list to any PPA funder before you sign anything. A good funder will have a clear answer to every question on it.
Cash vs rent to own vs PPA
A short comparison to help you weigh your options. Capital, ownership, tax and term all shift depending on which route you choose. See finance for the full four-way view, including lease.
| Cash | Rent to own | PPA | |
|---|---|---|---|
| Capital needed | Full cost upfront | No big upfront payment | No upfront cost for the system |
| Who owns it | You, from day one | The funder, until the last payment | The funder |
| Who claims Section 12B | You can normally claim it (ask your tax adviser) | Depends on how the agreement is written (ask your tax adviser) | Normally the funder, not your business (ask your tax adviser) |
| Term | None | 3 up to 15 years, depending on deal size and your company's history | Usually 10 years or more, can be shorter |
| End of term | You own it | You own it | Buyout or ownership depends on the funder |
Reading the table: cash needs the most money upfront, but gives you the asset and normally the tax claim from day one. Rent to own needs no big upfront payment and still ends in you owning the system. A PPA needs no upfront cost for the system, but the system, and normally the tax claim, stay with the funder for the life of the agreement.
Section 12B under a PPA
Under a Power Purchase Agreement, the funder owns and runs the system and sells you the electricity it makes. So it is normally the funder, not your business, that can claim the Section 12B write-off. Ask your tax adviser.
This is the trade-off worth understanding: you do not get the tax write-off yourself, but you also do not pay for the system. Ordinary Section 12B lets most business systems (there is a size limit, ask your tax adviser) be written off at 100% in year one, for whoever owns and uses it in their own trade. The enhanced 125% allowance ended on 28 February 2025. Company tax is currently 27%. Ask your tax adviser how this applies to your business.
Example only. A 100% Section 12B allowance can reduce a company's taxable income by the full cost of a qualifying solar system in year one. At South Africa's 27% company tax rate, that can cut the tax bill by up to 27% of the qualifying cost. This only applies if the business owns the system, uses it in its own trade, and has enough taxable profit that year to use the deduction against. Under a PPA, this benefit normally goes to the funder, not to you. Ask your tax adviser.
A PPA system can help with demand charges too
A solar system under a PPA, with a battery, can help lower your peak use and your demand charges. A demand charge is billed on the highest half hour of use in a billing period, so cutting that peak matters as much as cutting your overall use. Solar alone helps during the day; pairing it with a battery lets you draw on stored power at your priciest hours too. See energy management for how this works.
No roof space for solar?
If your site has no roof or land for panels, wheeling can still bring solar power to your meter over the existing grid. It works differently from a PPA: a solar plant elsewhere feeds the grid, and the power you draw is credited against your bill. See wheeling for how it works and whether it fits your site.
What you get with a ZenSolar PPA
Whichever funder you sign with, this is what ZenSolar itself brings to the project.
How a ZenSolar PPA works, step by step
1
Book your free energy assessment
We review your bill, including demand charges, and your site.
2
Report, funder and design
You get a PDF report plus a walk-through in about 1 to 2 weeks: recommended system size, equipment list, and payback time. We match you with a PPA funder (use the checklist above to guide your questions), design the system around your real use with a structural engineer's sign-off, and handle your CoC and SSEG application, with fees and meter costs in our quote.
3
Install and switch on
Your system is installed by our team and preferred, vetted installers approved by the brands, and switched on about 1 to 3 weeks after your first call, depending on approvals, paperwork, and system size. You pay per kWh at the rate agreed up front, which rises each year by an amount set in your agreement.
Finance available through South Africa’s leading banks
With us / with them
Not every PPA offer looks the same. Here is the difference our approach makes.
With us
- Business PPA only, said plainly, no residential PPA
- A free energy assessment before anything is designed
- Custom design, with a structural engineer's sign-off on every job
- CoC and SSEG application handled for you, fees and meter costs included
- A 10-year swap-out warranty on inverter and battery
- Straight answers on term, price rises and buyout, no invented promises
With them
- Vague or residential-style PPA offers
- No energy assessment before a quote
- Design outsourced, no named sign-off
- SSEG paperwork left to you, or hidden fees
- No clear warranty stated
- Vague promises on price rises and buyout terms
Frequently asked questions
A solar PPA is an agreement where a funder owns and runs a solar system on your business's roof. You pay only for the solar power you use, per kWh, at a price that goes up each year. There is no upfront cost for the system.
A funder pays for and owns the system. We design it and arrange the install. You use the power it makes and pay the funder for it, at an agreed rate. You never pay for the equipment itself, only for the power it produces.
Yes. ZenSolar's PPA is for businesses only. We do not offer a residential PPA. If you are looking at your home, see rent to own instead.
You avoid the upfront cost of buying a system, and you pay only for the solar power you use. The trade-off: you do not own the system, and the funder, not your business, normally claims Section 12B.
Usually 10 years or more. It can be shorter, depending on the funder. A longer term gives the funder time to recover the cost of the system through the power you buy.
Yes, the price goes up each year. Ask your funder whether the increase is a set amount or linked to inflation, and get it written into your agreement.
Maintenance depends on the options you choose. Your system also carries ZenSolar's 10-year swap-out warranty on the inverter and battery.
This depends on the funder. Ask what happens at the end of the term before you sign: some funders offer a buyout, others do not.
Buying out a PPA early is possible with some funders, not with others. Ask before you sign.
A PPA is a long-term commitment, and the price rises each year, though we cannot promise a figure. Buyout and end-of-term terms depend on the funder. Weigh these against not having to pay for the system upfront, and against the ongoing cost and effort of financing or buying a system outright.
Normally the funder, not your business. Ask your tax adviser how this applies to your own agreement.
A PPA never transfers ownership to you: you pay for the power the system produces. Rent to own ends with you owning the system. See finance for the full comparison.
Request a solar quote for your business
Tell us about your business and your electricity use. We will size a system and finance option, then confirm a real quote after a short site check.