Section 8 · Business Plan
Revenue Model & Marketing Strategy
The revenue structure underpinned by the 25-year PPA and the multi-year revenue projections for the Solstice solar plant.
8.1 Revenue Structure
The project’s revenue model is anchored by a 25-year
inflation-indexed Power Purchase Agreement, which provides the
contractual certainty required to support non-recourse project finance
debt. The PPA tariff of ZAR 0.62/kWh (Year 1, in April 2026 money)
escalates annually at CPI, protecting the project’s real returns against
inflation erosion. Secondary revenue streams include Renewable Energy
Certificates (RECs) tradeable on the South African renewable energy
certificate market, voluntary carbon credits certified under recognised
international standards such as the Gold Standard or Verified Carbon
Standard, and ancillary services revenue from the Phase 2 BESS
installation.
8.2 Revenue Projections
| Revenue Component | Year 1 | Year 3 | Year 5 | Year 10 | Year 15 | Year 20 |
| Operational Status | Constr. | Full Ops | Full Ops | Full Ops | Full Ops | Full Ops |
| PPA Revenue (ZAR M) | — | 138.0 | 155.5 | 218.2 | 285.0 | 372.5 |
| REC Revenue (ZAR M) | — | 4.2 | 6.2 | 8.0 | 10.2 | 13.5 |
| Carbon Credits (ZAR M) | — | 3.0 | 5.0 | 6.2 | 7.8 | 9.8 |
| Total Revenue (ZAR M) | — | 145.2 | 166.7 | 232.4 | 303.0 | 395.8 |
| EBITDA (ZAR M) | — | 98.5 | 118.4 | 174.2 | 237.5 | 318.5 |
| EBITDA Margin | — | 67.8% | 71.0% | 75.0% | 78.4% | 80.5% |
Table 5: Revenue and EBITDA Projections
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Solstice Energy (Pty) Ltd.