“South African farmers are facing some of the toughest operating conditions in the world,” says Richard Flamand, Country Lead at Candi Solar. “Our interactions with farmers across the country have highlighted three major energy hurdles and the innovative solar solutions already available to overcome them.”
- Unreliable and Expensive Energy
Irrigation, cooling, processing, and security on farms all rely heavily on a consistent power supply. Uninterrupted supply is critical to keep irrigation schedules on track, prevent cold storage from failing, and ensure security lighting and electric fencing remain operational. An unreliable energy supply, coupled with record-high diesel prices and rising energy tariffs, is cutting deep into farmers’ bottom line.
Electricity prices continue to climb beyond inflation, with more than 24% increases due over the next three years. “As a crop farmer in the North West told us, they can spend over R248,000 on electricity in one month alone. It just keeps going up, and these new Eskom hikes are completely unsustainable,” says Flamand. “For many farmers, the challenge is controlling costs while keeping operations running, but with tariff hikes pushing production costs higher, profit margins will continue to shrink.”As a result, many farmers are considering alternatives.
“Our solar solutions are custom-designed for each farm’s unique energy requirements and managed by experts at every stage, from design and finance to installation, maintenance, and 24-7 monitoring,” emphasises Flamand. “These solutions can reduce energy bills by up to 50%, offering immediate financial relief while freeing up funds for reinvestment.”
- Limited Access to Flexible Finance
Historically, farmers’ solar financing options were limited to self-financing, bank loans, or traditional Power Purchase Agreements (PPAs) – each with drawbacks.
Self-financing offers complete ownership but requires a large upfront investment, often diverting funds away from core operations. Traditional bank loans bring fixed monthly repayments, collateral requirements, and reliance on credit lines that can strain cash flow. In both cases, the farmer carries the full financial and operational risk. If a system underperforms, breaks down, or suffers damage, the farmer remains responsible for repairs and repayments, regardless of performance.
Candi Solar’s financing models transfer that risk entirely to Candi. Even farmers who self-finance or take bank loans can choose the Solar Max performance model – a non-financing option where Candi assumes full responsibility for system performance, management, and optimisation, ensuring the solar installation delivers as designed.
PPAs remove upfront costs but mean farmers do not own the system; they lose out on the Section 12B tax benefit, which allows 100% of the system cost to be written off in the first year; and remain dependent on the provider for long-term energy independence.
“These traditional financing options also fail to reflect the seasonal nature of farming,” explains Flamand. “Fixed monthly repayments and collateral requirements put pressure on farmers during their lowest income months. Farmers need financing that works with their seasons, not against them.”
Candi Solar’s Performance-Linked Instalment Sale (PLIS) model enables ownership from day one with zero upfront cost and no financial risk. Payments are linked to actual system performance, while flexible structures – including quarterly payment options – are designed across both PLIS and PPA models to align with farmers’ cash flow cycles and ease pressure during non-revenue months.
“As partners, we take full responsibility for performance,” adds Flamand. “One farmer in the Northern Cape recently experienced severe flooding that left their entire system underwater. Because they were on our PLIS model, they didn’t have to cover any repair or replacement costs. We had our teams on site and the system fully restored within two weeks. Under a bank loan or self-financed setup, that farmer would have faced repair costs, downtime, and the uncertainty of relying on contractors to respond quickly and fix the system properly. That’s the difference when your solar partner carries the risk with you, not against you.”
- Underperforming Solar Assets
Farmers who have already invested in solar may face underperforming systems. Poor installation, dirty modules, inefficient inverters, and lack of maintenance can quietly erode performance and profitability.
Recognising this, Candi Solar introduced Solar Protect+, an industry-first solution combining performance protection with expert asset management. Farmers are compensated for every lost kilowatt-hour if a system underperforms, while Candi manages all maintenance and optimisation.
With its performance-based model, farmers pay a fixed rate per kilowatt-hour linked to actual generation – so when systems outperform, both farmer and Candi benefit.
In addition to Solar Protect+, Candi Solar also provides financial relief for underperforming systems. “We offer farmers with struggling solar systems options such as buyout rescue, which puts cash back into your business by refinancing a paid-for system or bank loan. And if you already have a PPA, we can restructure it with better terms and a more reliable partner,” explains Flamand.
Together, these measures restore financial stability and ensure that solar assets deliver long-term value.
A Sustainable Future for South African Farms
“With Swiss engineering roots and a strong local presence in South Africa, Candi Solar combines international standards with on-the-ground expertise. Our deep capability in asset intelligence and management allows us to transform underperforming solar systems into reliable, high-performing assets,” says Flamand.
“Candi works individually with each farmer to ensure their solar solution continues to perform and evolve as their business does. Because no two farming operations are the same, our model is built on flexibility rather than a one-size-fits-all approach – and Candi carries the performance risk, so farmers don’t have to,” he concludes.
The pressures on South African farmers are immense, but flexible solar financing models are providing a way forward. Designed around the realities of agricultural life, these solutions combine financial stability, operational resilience, and environmental stewardship – ensuring farmers no longer carry the risk alone.
To learn more about going solar and the flexible financing models available, visit www.candi.solar
About Candi Solar
Candi Solar is a pioneering company specialising in highly customised, financially attractive, and risk-free solar power solutions managed end-to-end, so our commercial and industrial clients can transition to solar energy with confidence and peace of mind.
Leveraging its expertise as a solar engineer, financier, and operator, Candi Solar has distinguished itself as a leader in the field, with 165 installations across South Africa and India, generating 200+MWp while mitigating an estimated 190,000+tons of CO2-equivalent emissions annually since its inception in 2018.
A trusted partner for businesses looking for sustainable energy solutions, Candi Solar’s impressive portfolio includes projects in South Africa, such as Kings Park Stadium HQ, Schneider Electric, Pick ‘n Pay, Hi-Tech Inks and Toyota, as well as Bracken Timbers, whose Candi Solar solution has already generated R3 million in savings, in 3 years; as well as Airtel and Jindal Saw in India, where Candi Solar was recently ranked among the Top 5 rooftop solar developers.
This success has inspired global investor confidence, with Candi Solar recently securing a substantial $38 million in equity investment from Norfund, Kyuden International, and STOA to fund its growth and finance an additional 200 MW of business solar projects.
This propels Candi Solar closer towards emerging as the premier rooftop solar player in the commercial and industrial space and accelerates its purpose of powering a more sustainable planet, one rooftop at a time.
For more information about Candi Solar and its innovative clean energy solutions, please visit us at www.candi.solar
