Nairobi manufacturer that went solar without panels
A medium-sized textiles manufacturer on the outskirts of Nairobi faced frequent outages and rising diesel bills. Rather than invest scarce capital in rooftop arrays and backups, the company signed a 10-year corporate power purchase agreement (PPA) with a solar developer situated 120 km away.
Under a wheeling arrangement with the national grid operator, the solar plant’s output is injected into the grid and an equivalent amount of clean energy is credited to the factory’s meter. Within 12 months the manufacturer cut grid-import costs by 22%, slashed fuel spend for backup generators, and reported a 40% reduction in scope-2 emissions progress that satisfied both its bank financing covenants and an international buyer’s sustainability requirement.
This is not an isolated story. From Kenya to Namibia and South Africa, corporations are increasingly choosing offsite solar through PPAs, virtual PPAs, and grid-wheeling structures because they unlock scale, improve reliability and preserve working capital. Offsite projects let businesses access utility-scale economics and professional operations while meeting investor and customer ESG mandates.
the rise of offsite corporate renewables
Corporations across Africa are shifting from onsite generation and diesel dependence to offsite renewable procurement for four practical reasons:
- Cost competitiveness. Large, utility-scale solar projects achieve lower levelized costs than small rooftop systems. Aggregated demand from corporations supports bankable projects with cheaper tariffs.
- Capital efficiency. Offsite PPAs require little to no upfront capex from the buyer; developers raise project finance and operate the asset.
- Scalability and speed. Building a 50–100 MW plant outside a city is faster and benefits from economies of scale not available for distributed rooftop installs.
- Regulatory windows. Emerging wheeling and time-of-day metering frameworks in several African markets allow physical or virtual delivery of energy across grids.
Also read: Africa Turns to Chinese Solar as Cheaper Panels Spark Record Energy Shift
These drivers explain why corporate renewable PPAs are no longer niche. They are solutions for companies that must deliver on emissions targets, guarantee supply for continuous industrial operations, or secure price certainty in volatile electricity markets.
distance vs cost vs energy saved
illustrative typical relationships. Actual figures vary by country, grid charges, and wheeling tariffs.
| Distance of PV plant from corporate load (km) | Indicative levelized tariff (USD/MWh) | Estimated annual energy credited (MWh) | Estimated annual cost savings vs diesel generator (%) |
| 10 km (nearby) | 45–55 | 3,000 | 60% |
| 50 km (regional) | 42–52 | 3,000 | 55% |
| 120 km (interstate/regional) | 40–50 | 3,000 | 50% |
| 300+ km (national) | 38–48 | 3,000 | 45% |
(Assumes wheeling losses and transmission charges are moderate; savings vs diesel based on typical fuel and maintenance avoided. Use local tariff schedules for precise modelling.)
Regulatory support and grid access
Regulatory frameworks are the backbone of offsite corporate procurement. Governments and utilities that clarify wheeling rules, permit third-party access, and allow recognised renewable certificates create the conditions for PPAs to be bankable. Key enablers include:
- Clear wheeling tariffs and loss allocation so buyers and developers can model cash flows.
- Metering and settlement standards that allow energy injection at one point and consumption accounting at another.
- Renewable certification and additionality rules enabling corporations to claim emissions reductions credibly.
- Interconnection and curtailment terms that protect revenue in variable production scenarios.
Where regulators have moved decisively by publishing standard PPA templates or opening bilateral wheeling procurement timelines shorten and financing costs fall. Conversely, ambiguous rules increase perceived risk and raise the cost of capital, slowing deal flow.
Investor insights
For investors, offsite corporate solar in Africa presents a compelling risk-adjusted profile when structured correctly:
- Predictable cash flows. Long-dated corporate PPAs (8–15 years) provide revenue visibility, especially with creditworthy buyers or buyer-credit enhancements.
- Portfolio diversification. Geographically distributed projects reduce exposure to single-market regulatory shocks.
- Attractive returns. Lower construction costs for utility-scale solar and improving panel efficiency support healthy project IRRs even after accounting for transmission levies and potential curtailment.
- Exit pathways. Secondary market appetite for contracted renewable assets from infrastructure funds to institutional investors is growing, improving liquidity.
However, investors must underwrite regulatory risk, off-taker credit risk, and transmission reliability. Structuring tools such as partial guarantees, syndicated PPAs, and contractual protections against curtailment increase bankability. Close engagement with policy makers to streamline wheeling and interconnection remains a value-lever for early movers.
Also read: Electricity Access in Africa vs Renewable Energy Potential
practical takeaways for corporates and investors
- Corporates: map your load profile, quantify avoided fuel costs, and prioritise counterparties with transparent wheeling rules. Use virtual PPAs where physical wheeling is not yet feasible.
- Investors: focus on markets with published wheeling frameworks and demonstrated grid stability; insist on robust off-taker creditworthiness or credit enhancement.
- Policy makers: standardise wheeling tariffs, clarify metering standards, and publish PPA templates to unlock private financing.
Offsite solar is more than an energy-sourcing tactic it is an infrastructure strategy that aligns corporate finance, investor returns and national decarbonization. For African businesses that want scale, reliability, and green credentials, remote solar procurement is fast becoming the default play.
