Project snapshot: 3 sites · Total 1.2MWp solar PV · Gauteng · Commissioned Q2–Q4 2024 · PPA structure via SOCO CAPITAL · 20-year term
Background
Sequence Logistics is a Gauteng-based third-party logistics (3PL) provider operating three warehousing and distribution facilities: a 22,000m² hub in Kempton Park, an 18,000m² cross-dock in Boksburg, and a 14,000m² facility in Centurion. Combined electricity spend across the three sites was R2.1m per month prior to the SOCO ENERGY engagement.
The business had evaluated solar on several occasions but had not proceeded, primarily because:
- Previous proposals addressed each site independently, creating three separate contracts, three lenders, and three maintenance relationships
- The finance team could not get comfortable with the capital outlay across three sites simultaneously
- Accountability for performance across a multi-site installation was unclear under single-site proposals
The SOCO ENERGY Approach
SOCO ENERGY proposed and delivered a portfolio-level solution: a single PPA covering all three sites, structured and funded by SOCO CAPITAL, with a unified monitoring platform and single point of contact for all operational and commercial matters.
Site 1 — Kempton Park Hub: 520kWp
East-west bifacial panel configuration on the main warehouse roof to maximise generation across the full daylight window. High base load (conveyor systems, charging bay, offices) makes this site the highest-utilisation installation in the portfolio. Estimated annual yield: 810 MWh.
Site 2 — Boksburg Cross-Dock: 420kWp
North-facing monocrystalline array on the cross-dock roof. The cross-dock's shift-based operations create a strong daytime demand profile well matched to solar generation. Estimated annual yield: 655 MWh.
Site 3 — Centurion Distribution: 260kWp
Rooftop installation on the smaller facility, sized to offset approximately 60% of daytime consumption. The remaining generation exported to the Centurion municipality under a wheeling arrangement (first in the SOCO ENERGY portfolio to utilise municipal wheeling). Estimated annual yield: 405 MWh.
The PPA Structure
SOCO CAPITAL structured a single 20-year PPA covering all three sites under one agreement. Key commercial terms:
- PPA tariff: 28% below the weighted average grid tariff at signing across all three sites
- Annual PPA escalation: 5% per annum
- Performance guarantee: SOCO ENERGY guarantees minimum annual generation (P75 yield) — shortfall credited to client
- O&M responsibility: SOCO ENERGY for full 20-year term, including panel cleaning, inverter maintenance, and monitoring
- Single monthly invoice across all three sites, reconciled against actual generation data from the monitoring platform
Results
Operational simplicity
The portfolio approach delivered a structural simplification that single-site proposals could not match. The finance director manages one PPA invoice. The operations team has one monitoring dashboard. SOCO ENERGY is the single point of accountability for all three sites' generation performance.
Emissions reporting
Sequence Logistics' annual sustainability report now includes verified scope 2 emissions reductions across the portfolio — supporting the business's B-BBEE environmental credentials and meeting increasing requirements from multinational clients with supplier sustainability scorecards.
Client Comment
"We'd been looking at solar for three years. The reason we hadn't moved was the complexity of doing it across three sites with three different arrangements. SOCO ENERGY solved that in one proposal."
— CFO, Sequence Logistics (Pty) Ltd