Reducing operating costs and generating returns through rooftop solar at scale
Retail malls are among the most energy-intensive commercial properties in the built environment. Centralised air conditioning systems, extensive internal and external lighting, escalators, lifts, refrigeration in anchor tenant stores, and the power requirements of hundreds of individual retailers combine to produce an electricity demand profile that is both high in volume and consistent throughout trading hours. For mall owners and property funds, electricity is one of the largest line items in the operating cost budget — and in the South African context, it is a cost that has grown relentlessly over the past decade.
The Commercial Case for Solar in Retail: Burgersfort Mall presented an ideal solar opportunity: a large, structurally sound rooftop offering substantial available area for photovoltaic panel installation, combined with a significant and predictable daytime energy demand profile that aligns closely with peak solar generation hours. By generating electricity on-site during trading hours, the mall substantially reduces its reliance on grid supply during the most expensive tariff periods, directly lowering the utility cost that would otherwise be recovered from tenants or absorbed by the property owner.
Beyond cost reduction, mall properties with embedded electricity generation infrastructure are increasingly able to unlock an additional revenue stream through the on-sale of energy to tenants at a rate that reflects the blended cost of generation — typically below the prevailing Eskom tariff. This arrangement creates a win-win: tenants benefit from lower electricity costs relative to direct grid supply, while the property generates a return on its solar investment that enhances overall asset yield.
IRR and Investment Return: The financial case for large-scale commercial solar is compelling. With installation costs that can be recovered within five to seven years under current tariff conditions, and a system lifespan of 25 years, rooftop solar at a shopping centre generates a long-term internal rate of return (IRR) that typically exceeds most alternative property improvement investments. As electricity tariffs continue to rise, the return profile improves further — making solar one of the few capital investments in the commercial property sector where the asset value increases as energy prices escalate.
SolarEPC designed and installed the solar PV solution at Burgersfort Mall, incorporating all electrical engineering, grid integration, and energy management infrastructure. The result is a facility that operates at substantially lower cost, with a more resilient energy supply and a measurable improvement in its environmental performance
TECHNICAL SPECIFICATIONS
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Sector: Commercial — Retail Mall
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Primary Benefit: Operating cost reduction + tenant billing
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Solar PV: 922 kWp
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Location: Burgersfort, Limpopo