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Solar PPA explained: how your business gets solar with no money down
A solar power purchase agreement (PPA) is a deal where a company pays for, builds and runs a solar system at your site, and you buy the power it makes at a rate below what you pay now. You spend nothing up front, and the system is never on your balance sheet.
What is a solar PPA?
It is an agreement to buy power, not equipment. The provider owns the panels, inverters and any batteries. You agree to buy the power they make, at a set rate per kWh, for a set number of years.
Your business keeps buying from Eskom or the municipality too. You just buy less from them, because part of your daytime power now comes from your own roof or yard.
How does a solar PPA work, step by step?
- Site assessment. You share twelve months of bills. The provider looks at your roof or yard and sizes a system to what you actually use.
- One agreement. You sign a PPA that sets your price per unit and every term, including what happens at the end. You see all of it before you sign.
- Build. The provider pays for and installs the system: panels, inverters, wiring and the paperwork.
- You buy the power. You pay only for the units the system makes, at a rate below your current tariff. Anything it does not make, you keep buying from the grid.
- They keep it running. Monitoring, cleaning, repairs and insurance sit with the provider for the life of the agreement. If the system makes less, they earn less.
How much can a solar PPA save?
Savings depend on your tariff and how much of your power you use in daylight. Darkstar's aim is to cut your bill by at least 10 to 15%. The saving also grows over time, because your PPA rate rises more slowly than the grid price.
For a sense of the market: in August 2026 the City of Cape Town signed power deals at 19% to 21% below Eskom's rates, with yearly increases tied to inflation, not to Eskom (source).
Who owns and maintains the system?
The provider does, for the whole term. If something breaks, they fix it at their cost. That is the point of the deal: they carry the performance risk, and they only get paid for power that is actually made.
What happens at the end of the PPA?
You choose. You can renew, have the system taken away, or take it over yourself. With Darkstar, every path is written into the agreement before you sign.
Does a PPA help during load shedding?
Partly. Solar runs your site while the sun is up. Batteries can be added where they fit. Panels on their own will not keep you running through an outage, and nobody should tell you they will.
Is a PPA right for my business?
It fits best if power is one of your biggest monthly costs, you use most of it in daylight, and you would rather keep your cash for the business than tie it up in a solar system. Factories, warehouses, cold stores and food processors are the usual fit.
Not sure if you should buy instead? Read buy, lease or PPA. Or book a free site assessment and see the numbers for your site.
