Commercial solar systems are generally categorised as small (20 to 50 kW), medium (50 to 150 kW), or large (150 kW and above), but these ranges are a starting point, not a recommendation. The right size depends on your actual consumption profile, how much of your load runs during daylight hours, and your budget structure. Oxbow conducts a thorough energy assessment drawing on your electricity billing history and site load profile, and uses that data to recommend a system sized to deliver the best financial return for your specific operation rather than the largest possible installation.
For commercial installations in South Africa, payback periods typically fall between four and seven years, depending on your current electricity spend, system size, and how much of your solar generation you consume directly during operating hours. As Eskom tariffs continue to increase annually, the savings generated by your system grow over time, meaning what begins as a reduction in your electricity bill becomes an increasingly significant financial advantage as the years progress. Oxbow provides detailed financial modelling based on your actual consumption data before any commitment is made, so your ROI projection reflects your business rather than an industry average.
Full upfront purchase is one option, but financed acquisitions are widely available through major South African banks. As Eskom tariffs increase year on year, the cost of your finance repayment remains fixed. In term this makes electricity savings grow, which means the investment becomes progressively more favourable over the repayment period. Rental and lease structures are also available for businesses that prefer to convert the capital expenditure into a predictable operational cost. Oxbow helps clients identify the financing structure that suits their cash flow and can connect you with appropriate funding partners as part of the process.
The financial case for commercial solar rests primarily on electricity cost reduction, not backup power. A well-designed system reduces your direct grid consumption during operating hours, meaning lower monthly bills regardless of whether there has been a single outage. Solar-generated power is also cleaner and more stable in voltage than municipal supply, which reduces wear on sensitive equipment over time. Additionally, Solar Power is clean energy meaning you are actively reducing your carbon footprint via participating, contributing to a healthier tomorrow. Oxbow designs systems to maximise your self-consumption rate during operating hours, ensuring the investment performs on cost grounds whether the grid is reliable or not.
Two mechanisms are worth knowing about. Under Section 12B of the Income Tax Act, businesses can claim a 100% capital allowance on qualifying solar assets in the year the system is commissioned, effectively deducting the full installation cost against taxable income in year one. Separately, the City of Cape Town’s Small-Scale Embedded Generation programme allows grid-tied businesses to feed surplus power back into the municipal network and receive credits against their electricity account. Oxbow manages the City’s SSEG authorisation process on your behalf and will recommend you engage your tax adviser on the Section 12B deduction before committing to a system.
Oxbow SA is conveniently located at Century Gate Business Park, Block 01, Century City, Cape Town, 7441, serving businesses across Century City, Milnerton, Montague Gardens, and the greater Cape Town area.
