Mezzanine debt fund manager Vantage Capital and investment management firm Greenpoint Capital have made a R635-million investment in commercial and industrial solar and battery energy asset holding company Commercial Energy South Africa.

Commercial Energy South Africa is a subsidiary of energy company SolarAfrica Energy and serves as a holding company for commercial and industrial rooftop solar and battery storage assets developed by SolarAfrica, which are also managed by SolarAfrica.

Its portfolio of assets has an energy capacity of 90 MW across 134 different sites.

The mezzanine facility of the investment was used to allow impact investment fund Inspired Evolution to exit from its investment in Commercial Energy South Africa, making SolarAfrica the 100% owner, says Vantage Capital.

“Taking full control of the portfolio means we can continue to innovate by bringing more renewable-energy solutions, such as electricity wheeling, to customers. This underscores our commitment to making cheaper, greener power more accessible to commercial and industrial businesses as part of their green energy journey,” says SolarAfrica Energy chief information officer Charl Alheit.

“This transaction reflects our conviction in distributed energy infrastructure and the strength of SolarAfrica’s platform. Commercial Energy South Africa's contracted commercial and industrial solar and battery portfolio provides predictable cash flows and supports South Africa’s shift to reliable and sustainable power,” says Vantage Capital partner Roshal Ramdenee.

“We look forward to working closely with SolarAfrica and Greenpoint as the platform continues to scale,” he says.

“We are pleased to have finalised this transaction in support of the SolarAfrica team, whose progress we have tracked over many years. We look forward to collaborating with Vantage Capital on this high-quality solar asset,” says Greenpoint Capital chief information officer Nic van Zyl.

SolarAfrica provides solar PV, battery storage, energy trading, electricity wheeling and gas-to-power services tailored for commercial and industrial clients. These help businesses to lower electricity costs, secure reliable power and reduce carbon emissions.

It has a strong track record, having delivered 343 MW of funded solar projects in Southern Africa since its founding in 2011, with a further 1.14 GW being rolled out.