South African renewable energy company, SolarAfrica raises $94m funding

South African renewable energy company SolarAfrica has raised $94 million in debt funding to build a large solar plant in the Northern Cape. The project, SunCentral 2, will produce 114 MW of electricity, enough to supply industrial businesses across the region and ease reliance on the country’s notoriously unstable grid.

Unlike traditional rooftop solar, SolarAfrica intends to supply power directly to the national grid, providing electricity through long-term contracts. This “wheeling” model allows companies to utilise renewable energy without the initial expense of purchasing and installing panels on-site.

SolarAfrica secured the funding from Rand Merchant Bank and Investec. According to a statement by the company, the raise will help the company to move from small rooftop installations to larger energy projects.

Rethinking how businesses get power

For South African industries, this project offers more than just green energy. By bypassing the limits of rooftop installations, companies can secure a larger share of their energy needs from renewable sources.

“Businesses want power they can trust, clean, affordable, and consistent,” said David McDonald, SolarAfrica’s CEO.

The company is investing in the Main Transmission Substation, which is important for managing up to 2 GW of power. This investment helps the grid handle more electricity and allows room for other renewable energy projects to connect in the future.

Solar Africa is filling gaps where the grid struggles

This is coming when South Africa’s national utility, Eskom, is battling unrelenting challenges with its ageing transmission network and falling short of citizens’ demands.

Frequent power outages and load shedding have led companies to seek alternatives. SolarAfrica’s SunCentral 2 demonstrates how private companies can step in to provide energy, acting as industrial energy suppliers.

The $94 million is a debt facility rather than an equity investment, which enables the company to expand rapidly while maintaining operational control. The company has already completed SunCentral 1 and is in preparation for SunCentral 3, with Phase 1 ultimately expected to reach a total of 342 MW.

To add, the firm has a pipeline of 3 GW under development throughout the country.

If all goes according to plan, SunCentral 2 could transform how South African businesses obtain reliable, renewable power, providing a model for private-sector solutions in a country where the national grid frequently falls short.

Also read: African female founders raised 0.9% of $3.2bn total funding in 2025; lowest in 4 years

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