Funding
Flexible and Tailored Financing Solutions for Solar PV Implementation
Rhino Energy Solutions offers flexible and tailored financing options to help clients meet their unique investment needs for Solar PV installation through Power Purchase Agreements (PPA), Roof Rental Agreements (RRA), and outright purchase (EPC) options.
Power Purchase Agreement (PPA)
A Power Purchase Agreement (PPA) is a legal contract between an Independent Power Producer (IPP), such as Rhino Energy, and a property owner or off-taker. The IPP builds, owns, operates, and maintains an embedded generation solar PV plant with no CAPEX or OPEX costs to the client. The power generated is supplied at a predetermined cost for a fixed term, typically ranging from 10-20 years.
This arrangement allows customers to secure a portion of their energy supply with renewable energy, without incurring installation or maintenance costs. The IPP charges a discounted tariff compared to municipal power supply, and customers consume the energy produced by the solar plant at the facility. Energy costs are invoiced monthly, with a plant performance report provided alongside. The Solar PPA tariff increases annually at a predetermined escalation rate, enabling businesses to forecast future energy costs and realize savings from day one. This funding option is off-balance-sheet, and ownership of the solar plant is transferred to the client at the end of the agreement.
Businesses can partner with Rhino Energy by co-owning the solar plant through a Special Purpose Vehicle (SPV) or EnergyCo, enabling attractive returns on capital invested and benefiting from tax incentives such as the SARS 12B allowance. You can also pass on the PPA obligation to your tenants, securing the lease for the PPA term, or allow your Propco to earn additional revenue by charging a margin on the difference between the PPA tariff and the cost of energy passed on to tenants.
For existing solar assets, Rhino Energy Solutions will acquire solar plants that have been in operation for 3-5 years. This offers an opportunity for business owners to benefit from ownership incentives and short-term paybacks, with the added benefit of cash injection while still receiving renewable energy savings without ownership risks or maintenance costs.
Rhino Energy successfully owns and co-owns multiple Solar PV Plants in South Africa, with a proven track record of excellent plant performance.
Benefits:
- Zero CAPEX and OPEX costs
- Off-balance sheet financing
- Predictable energy price increases
- Immediate savings
- Reduced carbon emissions
Roof Rental Agreement (RRA)
Transform unused roof space into an income-generating asset with no capital outlay. Rhino Energy will enter into a long-term lease agreement with commercial property owners for the use of the roof area to build, own, and operate a solar PV plant. The power generated will be sold to the property owner or tenant through a Power Purchase Agreement for the same term as the Roof Rental Agreement.
This solution allows property owners to benefit from securing long-term tenants, increasing property yields, and expanding lettable area, all without any capital or operational costs. Ownership of the solar asset is transferred to the property owner at the end of the term, increasing property value.
Benefits:
- Guaranteed long-term rental income with low risk
- Zero CAPEX and OPEX costs
- Increased lettable area
- Reduced carbon emissions
- Increased revenue
Outright Purchase (EPC)
Rhino Energy provides end-to-end solar solutions, ensuring your investment is secure and bankable. We handle Engineering, Procurement, and Construction (EPC), as well as ongoing maintenance through an Operations & Maintenance (O&M) service level agreement, backed by a yield guarantee.
Owning the solar plant allows businesses to finance it on balance sheet, benefit from VAT recovery, and accelerated depreciation through SARS 12B. As a preferred partner with major South African banks, we can assist with financing options tailored to your needs, allowing you to make an informed decision.
Benefits:
- Guaranteed renewable power generation
- Tax benefits
- Reduced energy costs
- Low operational costs
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