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Since a solar project potentially provides benefits for many years to come, it might be appropriate to match the financing with the life expectancy of the solar installation. Most banks offer 3–10-year solar funding (term loans, asset finance, leases, Islamic finance) priced off prime/JIBAR, subject to credit and security.Many banks consider the bill-saving cashflows, which can reduce net cash impact — but they still assess credit, production and security risks.

A Grid Tie System only uses inverters and solar panels, but no batteries. The obvious advantage is the simplicity and cost, as batteries represent a sizable investment. For businesses operating mostly during normal office hours, a properly designed and relatively affordable grid tie system could dramatically reduce electricity costs.

There are two tax implications for businesses investing in solar. The first is the VAT. Business that are registered VAT vendors can claim the input VAT on legitimate business expenses. Solar installations, being capital installations, are no different. The second is the wear and tear allowance. Capital expenditure for business purposes qualify for varying wear and tear claims for income tax purposes. The wear and tear allowed per year, depends on the type of asset – varying from 1 year to 50 years, depending on the asset type.

In South Africa, electricity supply became less stable and steadily more expensive over the last two decades with price increases of double the inflation rate becoming the norm. During the same time, solar technology made huge strides forward. Modern solar components are more efficient, easier to install and cheaper than ever before. It is now possible to design and build solar systems that produce stable electricity at lower cost than buying the same from the national grid or municipality.