How does a solar power system work?

Solar photovoltaic (PV) systems produce energy by converting the sun’s energy into electricity that can be used. In rooftop installations like this project, PV panels are installed on the roof of a building. These panels convert the sun’s energy into direct current (DC) energy, which is then converted into alternating current (AC) energy by an inverter, making up the two sides of a PV system: DC and AC. The energy flow is as follows:

  1. The DC power that is produced by the solar PV panels is transferred via solar cables to the PV inverter.
  2. The PV inverter converts the generated solar power from DC into AC that can be fed into the bank’s electrical system.
  3. On the AC side, the cables run from the PV inverter to the main switchboard, where the power feeds into the bank branches electrical system, reducing the electricity consumption from the main grid.

Benefits of getting electricity from solar energy:

  • Lower the environmental footprint, by reducing carbon dioxide emissions of your business and help to fight against climate change
  • Keep your energy expenses under control
  • Own the solar system after a fixed amount of time and enjoy free electricity for your business

How is the system financed?

The customer does not have to pay for the solar system upfront. Customers simply pay for the system over an extended period of time with monthly installments. This is done through a leasing agreement, which is tailored to each customer and has the following structure:

  1. ecoligo analyses the customer’s energy usage and designs a solar system to meet their needs.
  2. ecoligo and the customer agree on a fixed monthly price for the leasing of the PV system over a set term.
  3. This price is inclusive of all required maintenance work over the term.
  4. The customer pays either no or a very low upfront cost for the system.
  5. ecoligo owns the system for the duration of the term, after which the ownership is transferred to the customer at no additional cost. The customer has the option to buy the system from ecoligo before the end of the supply term.
  6. After the transfer of ownership, the customer will only need to pay for maintenance and operation of the systems but will no longer pay a leasing fee.

Stanbic Bank signed a leasing agreement with ecoligo in which they committed to buying the solar systems over the set term. They did not need to pay upfront for the systems. Leasing agreements for self-consumption solar systems are an ideal way for businesses to receive clean solar power without requiring a loan from a bank or investing in the system themselves.