Comparing renewable energy models

Discovery Green

Optimising your renewable energy strategy starts with choosing the right model for your business. In South Africa, renewable energy options include embedded solar, wheeled solar, wheeled wind, trader through aggregation, and trader through platform. Each model has distinct advantages and challenges in terms of coverage, cost and risk.

Renewable energy models are like cars - while all share basic features like wheels and engines, their specifications, warranties and service plans vary significantly. Similarly, the renewable energy landscape offers diverse options, each with unique trade-offs. Discovery Green has summarised the key features of these models to help you navigate the decision-making process.

What to consider when choosing a renewable energy model

Price is often the starting point for businesses exploring renewable energy options, but stopping there can lead to suboptimal outcomes. Below are five key factors to consider for an effective strategy:

1. Balancing price and coverage

   Coverage plays a critical role in determining the overall financial benefits of renewable energy. Businesses remain vulnerable to escalating utility prices and carbon taxes for every kilowatt‑hour (kWh) not covered by renewable energy.

   A low quoted price may seem appealing, but businesses may face higher long-term costs without sufficient coverage. Limited coverage leaves businesses exposed to utility price hikes and rising carbon taxes. For example, embedded and wheeled solar solutions often come with attractive per-kWh rates, but typically replace only 50% of a business's total electricity consumption.

   In contrast, higher-priced options, such as the platform model, provide up to 90% coverage. Although the upfront cost is higher than solar, the greater coverage reduces reliance on non‑renewable electricity, offering significant long-term savings.

2. Protection against future high costs

   Long-term financial protection is crucial when choosing a renewable energy model. Escalating utility prices and carbon taxes makes higher coverage strategies increasingly valuable. For example, Discovery Green's platform may have a quoted price 60% higher than embedded solar, but its 90% coverage significantly shields businesses from future cost increases. Over time, the platform model can deliver nearly double the savings, especially when factoring in the growing impact of carbon taxes.

3. Managing volatility

   Renewable energy is inherently volatile - solar depends on sunlight, and wind relies on consistent airflow. Businesses must assess which model best mitigates these risks. Solar energy is generally more stable than wind energy, making it a safer option for businesses concerned about weather‑related disruptions.

   However, models like Discovery Green's platform go further by addressing take-or-pay (link to take-or pay article) commitments, offering monthly banking, and diversifying generation sources, providing greater stability and protection.

4. Procurement timelines

   The time required to secure renewable energy varies significantly between models. Embedded solar solutions are generally quicker, with standardised processes that simplify contracting and installation. In contrast, wheeling models, particularly wind energy, involve complex construction projects and contracts, often taking years to finalise.

   For example, wheeled wind projects may take three to four years from negotiation to delivery due to construction delays and other complexities. Discovery Green's platform simplifies this process with standardised customer contracts, reducing timelines and risks.

5. Scalability for future growth

   Businesses often need to expand renewable energy coverage over time. Some models, like wheeled solar, can leave businesses with residual demand that is difficult to address. For instance, if a business initially replaces 50% of its energy demand with solar, the remaining demand - concentrated in off-peak hours - may be challenging and expensive to cover later.

   Discovery Green's platform offers a scalable solution, allowing businesses to easily add renewable energy for additional sites or increase demand without restarting the procurement process.

The benefits of partnering with Discovery Green

Discovery Green's platform model stands out for its simplicity, scalability, and robust coverage. It protects businesses from take-or-pay obligations, offers a standardised customer contract, and accommodates future energy needs. The platform model ensures immediate and long-term savings by focusing on high coverage and minimising risks.

In addition, the platform's ability to aggregate energy sources mitigates generation and consumption risks. This diversified approach allows businesses to achieve near-complete renewable energy coverage without the complexities of managing multiple suppliers or contracts.

Selecting the right renewable energy model is a long-term decision with significant financial and environmental implications. To make the best choice, look beyond price to consider coverage, risk mitigation, scalability, and procurement timelines.

Partnering with a supplier like Discovery Green offers a seamless, future-proof solution that balances sustainability with financial resilience. By choosing a strategy that prioritises high renewable energy coverage, businesses can reduce costs, protect against future risks, and contribute to a cleaner energy future.

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