Solar-as-a-service provider Wetility has secured a R500-million structured capital partnership with solar energy project funder Jaltech, which it will use to add more than 16 MW of solar capacity to the South African distributed energy footprint.

The new solar capacity, coupled with battery storage systems, will help to avoid 250 000 t of CO₂ emissions.

The R500-million funding structure comprises a blend of senior and equity capital.

Jaltech is known for pioneering private market investment opportunities in sectors underserved by traditional financiers and generally inaccessible to private investors. It identified Wetility as a high-impact business with strong potential to reshape South Africa’s residential and small business energy landscape.

Jaltech cofounder Derrick Hyde says Jaltech has assisted Wetility with portions of its growth plans but is now ready to stand firmly behind Wetility and back its mission to deliver reliable energy to thousands of homes.

Wetility CFO Dawid Swart says the funding unlocks the next phase of the company’s growth and empowers thousands of homeowners and small businesses who want more predictability, control and savings in the current volatile energy landscape.

“The capital partnership is a strong endorsement of our model and mission. Together, we are driving scalable, inclusive access to clean energy, one roof at a time,” he adds.

The companies anticipate that the deal will serve as a blueprint for future funding rounds to support a national scale-up strategy and enable the deployment of solar energy to thousands more homes and businesses over the coming year.

Wetility enables customers to take control of their electricity needs, reduce their energy bills and contribute to a more sustainable future by offering all-in-one solar subscription bundles.

In turn, Jaltech has successfully funded 250 solar installations to date and has more than R2-billion in assets under management across about 1 300 retail investments.