South African farmers are under increasing pressure as electricity costs continue to rise and power supply remains unpredictable. Energy-intensive operations like irrigation, refrigeration, and processing leave farms particularly vulnerable to load shedding and tariff hikes.

To counter these challenges, many farmers are turning to solar energy—not just as a sustainability measure, but as a strategic business decision. With the right financing structures, solar can offer long-term cost savings, greater energy security, and a way to future-proof agricultural operations against rising electricity costs.

While the benefits of solar energy are clear, many farmers face financial barriers when transitioning to renewable power. Upfront capital costs can be prohibitive, and traditional financing options, such as bank loans, often come with rigid repayment terms that do not accommodate the seasonal nature of farming income.

One solution emerging in the sector is a financing model that allows farmers to install and own solar systems without the immediate burden of upfront payments. Unlike Power Purchase Agreements (PPAs), which provide solar as a service but do not offer ownership or tax benefits, this approach keeps the asset on the farm’s balance sheet while linking payments to system performance.

The Performance Linked Instalment Sale (PLIS): A Game-Changer for Farmers

The Performance Linked Instalment Sale (PLIS) financing model is designed specifically for farms and businesses that want to own their solar system but need a more flexible, risk-free way to finance it.

How PLIS Works:

·  No Upfront Costs – Farmers gain immediate ownership of the solar system without large capital outlays. The system is financed through predictable instalments.
·  Performance-Linked Payments – Instead of fixed monthly repayments, instalments are based on the system’s actual energy generation. If the system produces less than expected, payments adjust accordingly, reducing financial risk. Unlike traditional loans, where repayments are fixed regardless of seasonal cash flow, PLIS ensures farmers are not burdened by high repayments when conditions are less favourable.
·  Tax Benefits – The PLIS model qualifies for South Africa’s Section 12B tax deduction, allowing farmers to claim up to 100% of the system’s cost in the first year.
·  Comprehensive Support – The model includes system design, installation, monitoring, and ongoing maintenance, so farmers can focus on their core operations without managing complex energy infrastructure.

This financing approach removes key barriers to solar adoption in the agricultural sector, giving farmers greater financial flexibility while securing energy independence.

Case Study: How Solar is Transforming Two Northern Cape Farms

For family-run farms, Genade Boerdery and Delpa, located in Douglas, Northern Cape, rising electricity costs had become a growing concern. Specialising in wheat, maize, potatoes, and pecan nuts, both farms rely heavily on consistent power for irrigation pumps and processing equipment. Faced with escalating energy expenses, they sought a solution that would reduce costs while ensuring operational stability.

Through a strategic partnership with Solar Power Developer, Financier, and Operator, Candi Solar, they implemented a solar energy system under the PLIS financing model, enabling them to take ownership of their system without upfront costs.

Key Outcomes:

·  Immediate Cost Reductions – In just over a year, Delpa saved R3.6 million, while Genade Boerdery recorded savings of over R1 million in two years by reducing reliance on grid electricity.
·  Tax Benefits – Both farms leveraged South Africa’s Section 12B tax incentive, securing significant tax savings.
·  Environmental Impact – Together, they have mitigated more than 9,000 tonnes of CO₂ emissions within a year.

“To maximise efficiency, Genade Boerdery installed 11 solar sites dedicated to powering irrigation pumps that draw water from a nearby river. Solar panels were strategically placed on unused land to avoid interfering with crop production, while inverters were housed in secure, custom-built enclosures to optimise performance. A similar setup at Delpa has enabled the farm to streamline energy use and ensure long-term cost stability,” explains Richard Flamand, Co-Country Lead for Candi Solar South Africa.

The Future of Farming: Energy Independence

As energy costs climb, solar is fast becoming a smart business move for South African farmers—not just a green one. Flexible financing models like PLIS are removing the biggest barrier: upfront cost. Genade Boerdery and Delpa’s success shows how solar ownership, paired with full-service support and performance-linked repayments, can deliver real savings and energy independence.

For farms looking to cut costs and future-proof their operations, solar—made accessible through innovative financing—is fast becoming the new normal.

For more information about transitioning to solar energy through the PLIS model, visit www.candi.solar

Source: Candi Solar South Africa
Image: Candi solar installation. Credit Candi Solar South Africa