Power Purchase Agreements Explained: Solar with Zero Upfront Cost

When we tell business owners they can install a commercial solar system on their property, start saving on electricity from month one, and pay absolutely nothing upfront — the most common response is: "What's the catch?"

The answer is: there isn't one. What we're describing is a Power Purchase Agreement, or PPA. And in 2026, it is one of the most powerful financial tools available to South African businesses seeking to cut operating costs without touching working capital.

Here is everything you need to know.

What Is a Power Purchase Agreement?

A Power Purchase Agreement is a long-term contract between a solar energy provider (like Quikle Energy) and a property owner (you). Under this agreement:

• The solar provider finances, designs, installs, owns, and maintains a solar system on your property.
• You purchase the electricity generated by that system at a predetermined rate per kilowatt-hour.
• That rate is set below Eskom's current tariff — and typically includes protections against future Eskom increases.
• The agreement runs for a fixed term: in our case, 10, 15, or 20 years.

You get clean, reliable solar power at below-market rates. We own and manage the infrastructure. You save from day one without spending a cent on capital.

PPA vs. Paying Eskom: The Direct Comparison

How the PPA Process Works

1. 1

   Free Site Assessment

   Our engineering team visits your property, analyses your electricity consumption data, and designs an optimal system for your needs.

2. 2

   PPA Terms Negotiation

   We present your custom PPA proposal, including your per-kWh rate, term length (10, 15, or 20 years), and estimated monthly savings versus your current Eskom bill.

3. 3

   Agreement Signing

   Once you're satisfied with the terms, both parties sign the PPA. No capital outlay required from you at any point in this process.

4. 4

   Installation (Within 14 Days)

   Our SAPVIA-accredited team installs the system. Sol AI monitoring is activated on day one — you receive your first performance report within 24 hours.

5. 5

   Ongoing Savings + Support

   You pay your monthly solar invoice (always below your old Eskom bill), and we handle all maintenance, monitoring, and system management throughout the term.

Who Qualifies for a PPA?

PPAs are best suited to businesses that:

• Have a consistent monthly electricity bill (typically R8,000+ per month for commercial sites)
• Own or have a long-term lease on their property (minimum remaining term should align with PPA length)
• Have adequate roof space or ground area for panel installation
• Are financially stable (a basic credit assessment is conducted)

Residential and smaller commercial properties may be better served by our rent-to-own offering — which also requires zero upfront capital and results in full ownership at the end of the term.

The 20-Year Picture

A business spending R20,000 per month on electricity today, switching to a PPA, might pay R12,000 per month for solar-generated power — saving R8,000 per month immediately. As Eskom tariffs continue their upward trajectory over 20 years while your PPA rate increases at a much lower contracted rate, the savings gap widens significantly.

The 20-year total saving for a business at this scale is measured in millions of rands. With zero initial investment.