Press release
“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. Power outages lasting days result from outdated rural grids buckling under the demands of modern agriculture, as well as persistent infrastructure damage and theft.
Diesel generators, once just a backup, have now become a cripplingly expensive necessity. Simultaneously, 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.”
Compounded by changes to tariff structures – including energy charges now unbundled into separate components such as a legacy c/kWh charge and an R/kVA generation capacity charge (GCC) – grid power is becoming increasingly unappealing, particularly during seasonal demand peaks. As a result, many farmers are considering alternatives. Hybrid solar systems are proving to be a viable option, offering greater control over costs and energy reliability.
“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. Furthermore, innovative finance models are designed around system performance, giving farmers confidence that their payments reflect real results on the ground.
Financing That Fits Farming Seasons
Historically, farmers’ financing options for solar energy systems were limited to self-financing, bank loans, or traditional Power Purchase Agreements (PPAs) – each with significant 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.
By contrast, Candi Solar’s financing models transfer that risk entirely to Candi. Even for farmers who prefer to self-finance or secure bank loans, or those who have already done so, the company offers its Solar Max performance model – a non-financing option through which Candi assumes full responsibility for system performance, management, and optimisation, ensuring the solar installation delivers as designed.
Traditional PPAs allow farmers to pay only for the energy they use, removing upfront costs and risk. However, they come with trade-offs: farmers do not own the system; they lose out on the Section 12B tax benefit, which allows 100% of the cost to be written off in the first year; and remain dependent on the provider for long-term energy independence. While PPAs take the financial burden off the balance sheet, they also mean the farm doesn’t gain ownership of a valuable energy asset.
“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.”
Recognising this, Candi Solar developed its Performance-Linked Instalment Sale (PLIS) model, enabling farmers to own their solar systems 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 challenges with underperforming systems. Poor installation, incorrect panel orientation, dirty modules, inefficient inverters, weak monitoring, and lack of maintenance can all quietly erode performance and profitability. When a system doesn’t generate as planned, farmers can end up paying more for electricity than expected and missing out on the energy savings the system was designed to deliver.
Recognising this reality, Candi Solar introduced Solar Protect+, an industry-first solution that combines performance protection with expert asset management to ensure solar systems deliver as designed. Farmers are compensated for every lost kilowatt-hour if a system underperforms, giving them complete protection, while Candi Solar manages all maintenance and optimisation. All system risks are transferred, with no need for farmers to manage O&M subcontractors.
With its performance-based model, farmers only pay when their system performs through a fixed rate per kilowatt-hour linked to actual generation – meaning when systems outperform, both the farmer and Candi Solar 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 through Candi’s refinancing,” explains Flamand.
Together, these measures not only restore financial stability but also ensure that farmers’ 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. Backed by international funding and local management teams, we’re able to reinvest directly into each client’s energy infrastructure – ensuring lasting value, performance, and peace of mind.”
“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,” concludes Flamand.
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 – while ensuring farmers no longer carry the risk alone.
To learn more about going solar and the flexible financing models available, visit www.candi.solar.
Photo by Sungrow EMEA on Unsplash
