Insights from recently energised commercial solar and battery storage projects in Southern Africa

Commercial and industrial solar and battery storage projects continue to roll out at pace across South Africa and the region. According to the Centre for Renewable and Sustainable Energy Studies (CRES), around 5.6 gigawatts of C&I embedded generation capacity had been installed in South Africa by January 2026.

At Terra Firma, we’re seeing this momentum first-hand across a steady pipeline of recently energised projects. These include larger solar PV systems, multi-site portfolios, and an increasing number of projects that combine solar with battery storage or generator integration.

The market drivers behind these investments are well understood. Electricity tariffs keep rising beyond inflation, grid supply remains uncertain in many areas, and businesses are under increasing pressure to manage both cost and operational risk. At the same time, the cost of energy technologies has come down significantly, particularly for battery energy storage systems (BESS). Lithium-ion battery prices have fallen by close to 90% over the past decade, making storage increasingly viable not only for backup, but as part of a broader cost and energy management strategy.

Looking across some of these recently energised solar and storage projects, a few notable patterns stand out.

Reducing electricity costs and improving cost predictability

Businesses continue to focus on reducing electricity costs, particularly in response to rising tariffs. There is also a growing emphasis on improving cost predictability and reducing business exposure to unpredictable and further tariff increases.

EPC and PPA models: how projects are being structured

Different delivery models are being used depending on the client’s needs. Some projects are delivered through engineering, procurement and construction (EPC) agreements, where the business funds and owns the solar PV system. Others are structured through power purchase agreements (PPAs), particularly where preserving capital or managing upfront costs is a priority.

Under a PPA, Terra Firma owns and operates the system, and the energy user buys the electricity generated at an agreed rate over time, typically without any upfront capital investment.

PPAs are being used across a range of project types, including larger and more complex installations, as well as for battery storage projects. (To learn more, read our latest blog on this topic: Self-funding or signing a PPA: a business guide to solar financing in South Africa).

Integrated energy solutions: solar, generators and multi-site portfolios

Another trend is the rise of more integrated and distributed energy approaches. Not every project is a single-site installation. Some are portfolios spread across multiple sites, such as Terra Firma’s projects for Vector Logistics or UVS discussed below. Others are designed to work alongside diesel generators and wheeled energy, or within more complex operational environments.

Battery storage for cost savings, arbitrage and resilience

The role of battery storage is expanding very fast. While it remains important for backup in some cases, more businesses are now using batteries for cost optimisation and reductions. This includes arbitrage — storing energy when it is cheaper or generated on-site, and using it during higher-cost periods — as part of a broader strategy to manage electricity costs.

With the introduction of time-of-use tariffs there is now a strong business case for arbitrage in SA. Storage can also support operations and reductions in constrained markets. Terra Firma’s recently energised TPZ project in Zimbabwe is a strong example, combining rooftop solar and battery storage to reduce diesel reliance and improve reliability.

The following recent projects illustrate how these trends are playing out in practice.

TPZ (industrial, Zimbabwe)

Terra Firma delivered a 3.6 MWp rooftop solar PV system with 3.8 MWh of battery energy storage (BESS) for TPZ, a leading Zimbabwean agri-processor. The project was delivered on an EPC basis for developer Cicada Solar.

The system generates around 4.2 GWh of clean electricity annually and is designed to reduce reliance on diesel, lower long-term electricity costs and protect operations from grid instability. Under ideal conditions, it can supply nearly all of the facility’s energy demand. The project is expected to avoid approximately 4,400 tonnes of CO₂ annually.

As one of the largest distributed solar and battery storage systems in Zimbabwe, the project reflects the growing role of hybrid energy systems in markets where security of supply remains a major concern.

Thulamahashe Mall (retail, South Africa)

At Thulamahashe Mall, Terra Firma recently energised a 1.2 MWp rooftop solar project delivered on an EPC basis.

The primary objective of the project is to reduce the mall’s municipal electricity costs. The system was also designed with generator-integrated tie-ins, with two of the three tie-ins integrated with generators. This allows the site to optimise savings while retaining flexibility when backup generation is needed.

This is a good example of how solar PV systems for retail and commercial properties are being structured around practical cost savings, while also working within the operational realities of the site.

Umhlatuzi Valley Sugar portfolio (agri, South Africa)

Terra Firma recently energised the Umhlatuzi Valley Sugar portfolio, a solar PV project built across four sites. Construction began in October 2025, with energisation completed in February 2026.

The project consists of ground-mounted systems and is expected to generate around 1.35 million kWh of clean electricity per year, equivalent to approximately 1,400 tonnes of CO₂ avoided annually.

The multi-site configuration reflects a broader trend toward distributed energy across operations, particularly in sectors such as agriculture where energy demand is not always concentrated in a single location.

CAFCA Harare (industrial, Zimbabwe)

CAFCA Harare, Zimbabwe’s only cable manufacturer and a Reunert company, recently completed a 1.16 MWp rooftop solar PV project.

The system is structured as a PPA and forms part of a diesel-solar microgrid. Construction started in December 2025, with commissioning completed in March 2026, ahead of schedule. The system is expected to generate approximately 1.74 million kWh of electricity annually.

The project highlights continued uptake of PPA models for industrial users, particularly in markets where reliability and capital efficiency are both key considerations.

Vector portfolio (commercial and industrial, South Africa)

Terra Firma has delivered a number of solar PV projects for Vector as part of an ongoing rollout across multiple sites, with 5 projects completed to date.

One recent example is the Vector Florida project in Roodepoort, a 585 kWp rooftop solar installation delivered on an EPC basis. Construction started in February 2026, with commissioning completed in April 2026. The system is expected to generate approximately 964,000 kWh of electricity annually.

The project forms part of a broader portfolio approach, reflecting growing demand for repeatable, site-by-site solar deployments across commercial and industrial operations.

What this means for businesses

Taken together, these projects give a clearer sense of how SA businesses are approaching energy decisions in practice.

There is no single “right” solution in terms of financing. EPC, PPA and hybrid approaches are all being used, depending on the client’s financial position, operational requirements and appetite for risk.

Projects are also being designed as part of broader energy strategies. Solar is increasingly integrated with storage, generators and multi-site deployments, rather than treated as a standalone intervention.

The role of battery storage is expanding. In some cases, it supports cost optimisation through arbitrage. In others, particularly in more constrained markets, it is central to maintaining operational continuity.

As the market evolves, the need to carefully evaluate and navigate all these options is only becoming more important. Businesses still evaluating their options should focus on understanding how different solutions can be combined and structured to maximise value over time.