Renewables
Jaltech to acquire idle commercial solar assets in South Africa
South African firm Jaltech plans to invest $27.5 million to purchase and upgrade underperforming business solar systems.
Key points
- Jaltech allocates $27.5 million to acquire underperforming commercial solar and battery installations.
- Emergency systems installed during load shedding focused on security rather than cost efficiency.
- Original owners can recover capital and enter power purchase agreements for lower tariffs.
What happened
South African commercial solar firm Jaltech has announced plans to invest $27.5 million, equivalent to R500 million, to buy up underperforming solar systems installed by businesses during past power cuts, Africa Business Communities reported.
According to the company, thousands of commercial entities deployed solar and battery assets strictly to maintain operations during rolling blackouts, rather than to optimise energy costs. These emergency installations often lacked proper sizing for consumption patterns or peak tariff hours.
Why it matters
Many South African businesses lack the capital and technical capability required to retrofit and optimise these installations for ongoing savings. Under Jaltech's business model, the firm acquires the assets, covers upgrade costs, and allows original owners to recoup their initial investment through the sale.
Participating businesses then enter into a power purchase agreement with Jaltech, securing reduced electricity tariffs without funding the technical overhauls themselves. The initiative aligns with a broader market shift in South Africa as companies pivot from prioritizing basic energy security to managing rising electricity tariffs.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
6.4% of electricity in South Africa was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
