Patrice Motsepe-Backed GoSolr plans $537 million expansion to solve South Africa energy crises

Patrice Motsepe-Backed GoSolr plans $537 million expansion to solve South Africa energy crises ©provided by Business Insider Africa

GoSolr, a company supported by South African mogul Patrice Motsepe and the largest bank on the continent, intends to invest 10 billion rand ($537 million) in implementing a program to lease solar panels and batteries to households in the country, which has been plagued with power outages.

・GoSolr, a company supported by South African mogul Patrice Motsepe intends to invest 10 billion rand ($537 million) in a lease program for solar panels and batteries to households in the country.

・The company aims to increase its solar-generation capacity to about 500 megawatts over the next four years, up from its current 70 megawatts.

・While South Africa has some of the world’s best solar potential, just 0.7% of its 17.8 million households use the technology for electricity.

According to Andrew Middleton, GoSolr’s chief executive officer, the two-and-a-half-year-old company aims to increase its solar-generation capacity to about 500 megawatts over the next four years, up from its current 70 megawatts.

It has received investment and financing from Patrice Motsepe’s African Rainbow Capital Investments Ltd. and Standard Bank Group Ltd, Bloomberg reported.

Being the largest of its kind in South Africa, the company is among several entities taking advantage of the power cuts and rising electricity prices that have plagued the country since 2008.

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In March, the capacity of rooftop solar installations in South Africa surged, more than doubling to 5,440 megawatts compared to the previous year. Residential properties contributed about 620 megawatts to this total, as reported by data compiled by the Johannesburg-based company.

South Africa’s solar potential

While South Africa has some of the world’s best solar potential, just 0.7% of its 17.8 million households use the technology for electricity. That compares with 31% for Australia, 4% in the UK and 3% in the US.

Of the power generated in the country 9.9% comes from solar and 77% from coal, according to GoSolr. While solar doesn’t produce greenhouse gas emissions, South Africa’s coal dependence has made it the world’s 15th-biggest source of climate warming gases.

GoSolr is targeting the 2.2 million households that earn more than 360,000 rand a year and its subscription service is beginning to save clients money in Cape Town, which has the highest electricity costs of major South African cities.