Commercial solar
PV Electricity Cost — Commercial
Installing a PV system can reduce your long-term electricity cost by 60%. The numbers compound strongly in your favour as municipal tariffs continue to rise.
Key figures
The commercial cost case.
- Levelised Cost of Electricity (LCOE) over 25 years for grid-tie PV
- R 0.48/kWh
- 2020/21 municipal tariff
- R 2.54/kWh
- Estimated savings over 25 years for a 100 kWp system
- R 8 m
- Roof space required for a 100 kWp PV plant
- 800 m²
Breaking down the numbers
Long-term electricity cost comparison.
A 100 kWp PV plant requires approximately 800 m² of roof space and will generate at least 160 000 kWh of electricity per year. Even higher returns are achieved when electricity is used for own consumption, with growing investment returns as electricity tariffs increase year on year.
Cost per kWh: The 2020/21 municipal tariff is R 2.54 /kWh versus a PV tariff of R 0.80 /kWh (including interest on capital).
Tariff escalation: The Eskom tariff increases at approximately 8% per annum, while the PV tariff increases at only 1% per annum (maintenance and capital replacement). This growing gap is what makes solar PV such a compelling long-term investment.
Levelised Cost of Electricity (LCOE): Over a 25-year period, grid-tie PV delivers electricity at R 0.48 /kWh versus an Eskom tariff that escalates to R 1.24 /kWh. For a 100 kW PV system, estimated savings over 25 years amount to R 8.0 million.
See what a commercial PV system would save you.
Request a free consultation and we will model your savings based on your actual consumption profile.