He said a typical solar panel installation, to power a small home between 4-7kWp, can cost anything between R60,000 and R105,000, excluding battery costs.
This translates into roughly R1.30 per kWh for the next 15 years, he said.
Commercial tariffs sit between 85c and R1.70 per kWh and residential tariffs can go as high as R2.20 per kWh.
Read GreenCape's full financial brief here
Radmore said for a medium-sized commercial system, roughly the size of 250kWp, the price increase to roughly R3.2 million, excluding battery costs.
“It is very important to highlight that these upfront costs are no longer a barrier in the South African decentralised energy market,” Radmore told Business Insider South Africa.
“A number of innovative financial mechanisms exist that require no upfront capital from the customer.”
For example, he said, a power purchase agreement allows consumers to buy electricity per unit as they do from Eskom at a set price for between 12 and 15 years.
Also read: With the new power price, solar geysers are almost – but not quite – starting to make financial sense
Radmore gave Business Insider South Africa a break down of what each bank is offering for solar panel installations.
It is important to note that solar panels are VAT deductible, and qualifies for a 12b tax benefit which can result in additional savings of 28% on cost.