Solstice Energy — Appendices
Supporting detail: detailed financial-model assumptions and a glossary of key terms.
Section 17 · Business Plan
Appendices
Supporting detail: detailed financial-model assumptions and a glossary of key terms.
Appendix A: Financial
Model Assumptions
The financial model is built on the following key assumptions.
Revenue assumptions: PPA tariff of ZAR 0.62/kWh (April 2026 money),
escalated annually at CPI (assumed 5.5% base case); P50 annual
generation of 240 GWh declining at 0.4% per annum module degradation
(Year 1: 2% initial degradation); system availability of 98% per O&M
contract guarantee. Cost assumptions: O&M fixed at ZAR 175/kW/year
(Year 1), escalated at CPI + 1%; insurance at 0.46% of replacement cost,
escalated at CPI; land lease of ZAR 4.2 million/year, escalated at CPI.
Debt assumptions: Senior debt at JIBAR + 350bps (assumed 12.5% all-in);
debt tenor 18 years including 2-year grace period; semi-annual repayment
on sculpted amortisation profile; minimum DSCR covenant 1.30x. Tax
assumptions: corporate income tax rate 28%; accelerated depreciation
under Section 12B of the Income Tax Act; assessed losses carried forward
without limitation.
Appendix B: Glossary of Key
Terms
| Term | Definition |
| AC | Alternating Current |
| BOS | Balance of System |
| BESS | Battery Energy Storage System |
| COD | Commercial Operation Date |
| DC | Direct Current |
| DSCR | Debt Service Coverage Ratio |
| EPC | Engineering, Procurement and Construction |
| GHI | Global Horizontal Irradiation |
| IRR | Internal Rate of Return |
| JIBAR | Johannesburg Interbank Average Rate |
| LCOE | Levelised Cost of Energy |
| NERSA | National Energy Regulator of South Africa |
| PPA | Power Purchase Agreement |
| REIPPPP | Renewable Energy IPP Procurement Programme |
| SPV | Special Purpose Vehicle |
Table 18: Glossary of Key Terms
— END OF BUSINESS PLAN —
Solstice Energy (Pty) Ltd | Confidential | April 2026
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.