Many medium sized Commercial and Industrial (“C&I”) companies in South Africa are high electricity users (for example: manufacturers, abattoirs and businesses operating in an environment requiring regular heating or cooling). Not only are these businesses faced with the challenge of continuous load shedding, but are now also finding it difficult to maintain their profit margins while energy costs are increasing at alarming rates every year. It is clear that they need to address these rising costs, but even many longstanding businesses lack the available and free cash, or balance sheet, to make a significant investment in the development of an alternative energy asset, which requires a significant upfront capital outlay. Quite frankly, these Commercial and Industrial companies want to focus on their core business and have their balance sheets unencumbered and available to the funding of future growth and operations rather than building a solar plant.
KSE offers C&I customers a fully funded, designed, constructed and maintained grid-tied solar PV energy solution (with optional energy storage capabilities) by entering into a long term (normally 20-25 years) power supply and purchase agreement (“PPA”). This simply means, KSE will provide alternative solar energy (and optional energy storage where required) to the C&I customers at a contractually agreed fixed tariff on a pay-per-use basis, escalating annually at an agreed escalation rate.