SOCO CAPITAL — Commercial Financing

Energy assets.
Zero upfront
capital.

SOCO CAPITAL provides purpose-built financing structures for commercial, industrial, mining, and agricultural energy projects — enabling businesses to access clean energy immediately without balance-sheet strain.

Choose Your Model

Every business is different. SOCO CAPITAL offers three core financing structures, each designed to match specific cashflow, ownership, and risk profiles.

PPA

Power Purchase Agreement

Pay per kWh · Below-tariff rate · Ownership transfer at term end

You purchase the energy generated by the solar system at a fixed rate per kilowatt-hour — 20–40% below your current Eskom or municipal tariff. SOCO ENERGY owns and operates the system throughout the agreement. Ideal for businesses that prefer an energy service over asset ownership.

  • Pay only for energy consumed
  • Rate locked in well below Eskom tariffs
  • Ownership transfers to your business at end of term
  • Off-balance-sheet financing treatment during term
  • Typical term: 10–20 years
  • Guaranteed performance levels
Get a PPA Proposal
Debt Finance

Structured Debt Solutions

Asset-backed finance · Custom structures · Large-scale projects

For larger C&I, mining, or agricultural projects where the business prefers to own the asset outright, SOCO CAPITAL facilitates access to project finance, asset-backed lending, and bespoke debt structures in partnership with leading South African financial institutions.

  • Retain full asset ownership from day one
  • Section 12B tax allowance — 100% depreciation in year 1
  • Project finance for MW-scale installations
  • Portfolio financing for multi-site deployments
  • Loan terms structured to project cashflows
  • SOCO ENERGY supports full due diligence process
Discuss Debt Finance

How Each Model Works

01

Energy Assessment & Proposal

We analyse your 12-month consumption data, site conditions, and tariff structure. You receive a detailed proposal showing projected savings, system size, and RTO payment schedule within 5 business days.

02

Agreement & Credit Approval

Once you accept the proposal, SOCO CAPITAL conducts a straightforward credit assessment. Most commercial entities qualify. A Rental Agreement is signed — no complex loan documentation required.

03

Installation

SOCO ENERGY's in-house EPC team designs and installs the system. Typical project timelines are 12–24 weeks from contracting to commissioning.

04

Monthly Rental Payments Begin

From commissioning, you pay a fixed monthly rental — typically lower than your previous electricity cost for that energy. Payments escalate at 6% per year.

05

Rental Step-Down at Month 61

At month 61 your rental drops by 35–50%, reflecting the reduced financing obligation. Payments continue at this lower rate — with 6% annual escalation — through to month 120. The system keeps generating savings throughout.

06

Full Ownership Transfer at Month 120

At month 120 (year 10), full legal ownership of the solar and BESS system transfers to your business at zero additional cost. You then continue to benefit from free solar energy for the system’s remaining 15–20 year life.

RTO at a glance

Rent-to-Own Summary

The most accessible financing path for commercial energy — designed to deliver immediate savings with zero capital outlay and a clear path to ownership.

Upfront costR0
Contract term5–10 years
Annual escalation6%
Rental step-downMonth 61 — 35–50% reduction
Ownership transferMonth 120 (R0)
Balance sheet impactOff-balance-sheet
Maintenance responsibilitySOCO ENERGY (throughout term)
Typical net saving20–40% vs Eskom
01

Load Profile & Site Assessment

We analyse your consumption patterns to design a solar system sized for your actual demand. A PPA rate is calculated that guarantees savings against your current tariff from day one.

02

PPA Agreement Signed

A Power Purchase Agreement is executed — a well-established legal structure used globally and by major South African financial institutions. SOCO ENERGY takes on all project risk.

03

System Installed & Commissioned

SOCO ENERGY installs, commissions, and connects the system. You pay nothing during installation. The meter starts running from commercial operation date.

04

Pay Only for Energy Consumed

Each month, you receive an invoice for the kWh generated and consumed at the agreed PPA rate. SOCO ENERGY handles all monitoring, maintenance, and performance guarantees.

PPA at a glance

Power Purchase Agreement Summary

A clean, off-balance-sheet energy service that converts your electricity cost into a predictable, below-tariff expense — with no asset ownership or maintenance obligations.

Upfront costR0
Billing basisPer kWh consumed
Typical rate saving20–40% vs Eskom
Contract term10–20 years
Asset ownershipSOCO ENERGY during term; transferred at end
Balance sheet impactOff-balance-sheet
Performance guaranteeYes — contractual
01

Financial Modelling & Structuring

SOCO CAPITAL models the project economics, Section 12B tax benefits, and optimal debt structure for your business. We prepare a bankable financial model for funder submission.

02

Funder Engagement

SOCO CAPITAL's relationships with South African banks, DFIs, and specialist asset financiers enable us to source competitive terms for your project.

03

Loan Approval & Project Start

On credit approval, SOCO ENERGY's EPC team begins procurement and construction. The asset is registered to your business from commissioning.

04

Loan Serviced from Energy Savings

Your monthly electricity savings effectively service the loan. The net cashflow impact is typically positive from month one, with full ownership and no liabilities at loan term end.

Debt finance at a glance

Structured Debt Summary

For businesses that want full ownership and maximum long-term return, structured debt delivers the best lifetime economics — particularly when the Section 12B allowance (100% depreciation in year 1) is applied.

Upfront costDeposit (project-dependent)
Asset ownershipYour business (from day 1)
Section 12B allowance100% depreciation year 1
Loan term3–7 years (asset life)
Minimum project sizeR500k+
MaintenanceClient or SOCO ENERGY O&M

Financing Model Comparison

Feature Rent-to-Own PPA Debt Finance
Upfront capital required R0 R0 Deposit required
Ownership transfer ✓ At term end ✓ At term end ✓ From day 1
Balance sheet impact Off-balance-sheet Off-balance-sheet On-balance-sheet
Section 12B tax benefit ✓ 100% year 1
Maintenance responsibility SOCO ENERGY (full term) SOCO ENERGY (full term) Client or SOCO ENERGY O&M
Typical contract term To month 120 (10 yrs) 10–20 years 3–7 years
Energy cost saving 20–40% 20–40% 30–60%+
Best suited for SMEs & C&I Large C&I, REITs Asset-owning businesses

The Financing Arm of SOCO ENERGY

SOCO CAPITAL was established to remove the single biggest barrier to commercial energy adoption — upfront cost. By combining deep EPC expertise with structured finance capability, SOCO can structure, fund, and deliver energy assets as a complete service.

All financing proposals are modelled against real consumption data and current tariff schedules to ensure guaranteed savings from day one. No assumptions, no estimates — every proposal is site-specific.

Talk to SOCO CAPITAL
The energy finance division of SOCO ENERGY

Data-driven proposals

Every financial model is built on your actual 12-month consumption data — not industry averages.

Guaranteed savings

Financing structures are designed to be cashflow-positive from month one — it's in our interest too.

Flexible structures

RTO, PPA, debt, or hybrid — SOCO CAPITAL will recommend the structure that best fits your cashflow and tax position.

Fast turnaround

Indicative proposal within 48–72 hours of receiving your electricity invoices. Credit approval typically within 2 weeks.

Start your financing journey

Get a tailored financing proposal.

Send us your last 12 months of electricity invoices and we'll model a custom financing structure for your operation — free of charge.

Request a Proposal View Commercial Solutions