Installing solar on rental properties allows landlords to generate electricity that can be supplied to tenants, often at a lower rate than Eskom tariffs while still creating an additional revenue stream. With the decreasing cost of solar technology and rising utility rates from Eskom, now is an opportune time for landlords to consider solar as a way to reduce costs and increase property value. For properties such as shopping malls, office parks, and small developments with subdivided workspaces, solar installations can be particularly beneficial. Landlords with ample roof space can make use of that space to generate solar power for tenants.

One option is a roof rental model, where a solar provider installs and operates a solar system on the building’s roof and pays the landlord a rental fee for the space used. The generated electricity is then supplied to tenants, often at a discounted rate compared to Eskom. This arrangement can generate additional income for the landlord without requiring upfront capital investment. Alternatively, landlords can enter into a Power Purchase Agreement (PPA), where a third-party provider installs and maintains the solar system and sells the generated electricity to the building or tenants at a lower rate than Eskom, with no initial capital investment required.

Another option is for the landlord to purchase the solar system outright, allowing them to benefit directly from reduced electricity costs and potentially resell electricity to tenants where regulations and metering allow. These flexible arrangements enable landlords to capitalize on solar energy, optimize financial returns, improve energy reliability, and support sustainability.