Providing Financial Solutions for a Profitably Greener Future
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What is a Power Purchase Agreement (PPA)?
A Power Purchase Agreement (PPA) is a long-term contract where a business agrees to purchase clean energy generated by a solar energy system installed on their premises. This system is supplied and maintained by an investor. The business pays a monthly rate per kilowatt-hour (kWh) for the energy consumed, often at a rate lower than the traditional municipal tariff.
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What We Do
At Haultron Energy, we are dedicated to driving the transition towards sustainable energy solutions. With our extensive financial structuring expertise, we provide clients with the financial options needed to adopt renewable energy technologies seamlessly and profitably.
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How We Do It
We partner with strong investment allies to facilitate renewable energy projects of various sizes. Our Power Purchase Agreements are non-standardized and customized to meet each client’s specific energy consumption and cash flow requirements.
Turnkey Projects
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Comprehensive Management
From conceptual design to commercial operation, we manage every stage of the project to ensure a smooth transition to green energy.
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Efficient Decision-Making
Our team makes faster, more informed, and impactful decisions, significantly reducing lead times.
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Flexible Financing
Our deal structures are tailored to client needs, offering more flexibility than traditional financiers.
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Early Cycle Funding
We fund projects earlier in their development cycle than traditional financiers.
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Strategic Partnership
Beyond funding, we act as a strategic partner in clean energy.
Key Features of Our Finance Model
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Full System Payment
We pay for the entire system, with deposit options available for exploration.
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Tariff-Based Sales
We sell the generated power to clients over a defined period (typically 5, 7, or 10 years), ensuring the tariff per kWh is below the current municipal rate.
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Annual Tariff Increase
An annual percentage increase (CPI + 3%) is applicable, which is substantially lower than municipal tariff increases.
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Energy Storage
If energy storage is involved, an additional fixed monthly payment applies.
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System Ownership
We own the system for the agreement duration, accruing the S12B tax benefit.
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End-of-Term Purchase Option
Clients can purchase the system for a nominal fee (e.g., R1,000) at the end of the term.
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Tailored Financial Solutions
We customize financial solutions and repayment profiles to suit client needs.
We align to your Cost-Saving Requirements
- Tariff Comparison: Compare our PV tariff to current municipal tariffs.
- Battery Repayment Comparison: If batteries are included, compare our battery repayment to expected diesel savings.
Credit Decision Process
Our credit decision process mirrors traditional financiers, relying on the financial standing of the client and similar securities such as bonds, sureties, and debtor books. With all required information available, the process can be concluded in weeks.
Funding Process
- Initial System Design: By Haultron Energy
- Indicative Proposal and Client Financials: Submission of audited financial statements and itemized quotations.
- Technical Review: Installation of data loggers, system design analysis, and itemized quotation review.
- Financial Review and Due Diligence: Collection of necessary documents including financial statements, credit checks, and utility bills.
- Introductory Briefing and Site Visit
- Credit Committee Approval
- Contracting: Includes development agreement, PPA, lease, operations and maintenance agreement, and securities agreements.
- Construction
- Commissioning & Monitoring
Haultron Energy is dedicated to providing up to 100% financing for commercial solar systems via Power Purchase Agreements, aligning with our client's cost-saving and sustainability goals. Partner with us for a brighter, greener future.
This arrangement not only reduces energy costs but also supports environmental sustainability.