Solar as a Service and Commercial Solar Financing

Compare outright purchase, asset finance, PPA and lease options to find a commercial solar structure that works for your business and balance sheet.

Bigfisch helps businesses compare outright solar ownership with financed and Solar-as-a-Service models, including PPAs and leases. The right structure depends on your available capital, energy use, cash-flow priorities and long-term ownership objectives.

Power today, pay as you go

For businesses with significant daytime electricity consumption, solar may reduce grid energy costs and improve energy resilience. The challenge is that a commercial system can require substantial upfront capital. Financing provides alternative ways to fund that investment.

Instead of treating solar only as an engineering decision, businesses can compare the financing structure alongside the expected energy savings, cash-flow impact and ownership responsibilities.

Not sure which option fits your business? Get in touch and we will walk you through it.

Talk to us about financing options

Ways to finance commercial solar

South African businesses have several routes to funding embedded solar. GreenCape identifies PPAs, debt financing and rent-to-own among prevalent financing mechanisms, alongside outright ownership, with different models allocating payment, ownership and performance responsibilities differently.

We recommend starting with a free assessment. Once you have projected numbers for your site, you can weigh them against your own numbers with your financial adviser and compare the four routes below:

CAPEX (Outright purchase)

An outright purchase may allow the business to claim applicable tax incentives such as Section 12B, subject to relevant requirements and advice from your tax adviser.

Best for: businesses with available capital that want direct ownership and the strongest potential long-term financial return.

Bigfisch cannot guarantee Section 12B deductions or payouts; eligibility depends on your tax position, so confirm with your tax adviser.

PPA (Power Purchase Agreement)

Under a PPA, a third party typically owns the solar system and the customer purchases the electricity it generates at an agreed tariff for an agreed period.

Best for: businesses that want to reduce energy costs without purchasing the solar asset upfront.

Lease

You pay a fixed monthly fee for the system regardless of how much it generates, giving you predictable budgeting without taking on ownership.

Best for: businesses that value predictable payments and access to a solar system without immediate ownership.

Asset Finance

Asset finance allows the business to fund the solar system through structured finance rather than paying the full capital cost upfront. The exact ownership, deposit, repayment and end-of-term arrangements depend on the finance agreement.

Who is Solar as a Service for?

Solar as a Service and commercial solar financing can suit businesses that want the benefits of solar while preserving working capital or avoiding the full upfront cost of ownership. Financing and procurement teams evaluating funding models, rather than just the engineering case, tend to ask for this option directly.

It can be particularly relevant for commercial, industrial and agricultural sites where electricity costs are material and preserving working capital matters.

Bigfisch has delivered solar projects from 67kWp to 644kWp, including a mill in Bothaville and a manufacturing site in KwaZulu-Natal. Talk to our team about how a similar structure could work for your site.

Talk to Our Team

Which financing model fits your business?

Bigfisch already produces transparent financial modelling, LCOE, payback and NPV, for every proposal. Most solar providers route every enquiry straight to a sales call rather than publishing real numbers, and few bring a genuine agricultural and industrial track record alongside it. Projects delivered so far range from a 644kWp mill in Bothaville to a 158kWp manufacturing site in KwaZulu-Natal, plus a 67kWp carport with generator integration.

How Commercial Financing works

A financed solar project with Bigfisch follows the same process as a cash purchase. The difference is who owns the asset at the end of it. In plain terms:

  1. Initial acceptance. You confirm you’d like to proceed and the site is scoped.
  2. Letter of intent. Both sides confirm commercial terms in principle.
  3. Technical review. Bigfisch Projects engineers assess the site and finalise the system design.
  4. Final proposal. You receive firm pricing and, for financed deals, the financing structure.
  5. Credit review. The financing terms are formally approved.
  6. Contracting. Agreements are signed, including the PPA/lease/asset finance terms where applicable.
  7. Site establishment and construction. The system is installed.
  8. Handover. The system goes live and, for cash purchases, ownership transfers to you immediately.

Whichever route fits your business, the objective is the same: a commercially viable solar system with a funding structure that works for your organisation.

Compare LCOE, NPV, IRR and Payback

Metric

What it tells the business

LCOE

Cost of generating solar electricity

NPV

Overall value of the investment over the modelled period

IRR

Modelled return on investment

Payback

Time required to recover the investment

Financing cost

Cost of the selected funding structure

Expected generation

Modelled electricity production

Grid tariff

Cost of the electricity being displaced


Ready to see your own numbers? Request a free assessment and we'll model it for your site.

Request Your Free Financing Assessment.

Tax Treatment and Section 12B

Tax treatment depends on the ownership, acquisition and use of the solar assets, as well as the applicable tax rules at the time of the investment. SARS guidance sets specific requirements for qualifying renewable-energy assets, meaning the treatment can differ between outright purchase, asset finance, lease and PPA structures. Businesses should confirm eligibility with their tax adviser before choosing a financing structure.

Frequently Asked Questions

What’s the difference between a PPA and a lease?

With a PPA, you pay per unit of power the system generates, so your cost tracks generation. With a lease, you pay a fixed fee regardless of output. A PPA usually suits sites with predictable, high daytime usage best.

Do I still get incentives like Section 12B under solar as a service?

Section 12B generally applies to the qualifying owner of the asset, subject to applicable requirements. Under a PPA or certain lease structures, the financing provider or asset owner may claim the allowance rather than the business. Confirm the treatment for your specific agreement with your tax adviser.

Is solar as a service more expensive than buying outright?

Outright purchase avoids third-party financing costs but requires more capital upfront. A PPA, lease or financed purchase may preserve working capital but introduces financing or contractual costs. The most appropriate option depends on your cost of capital, energy use, tariff, contract terms and ownership objectives.