“Solar rentals” is a term that has gained popularity alongside the ever-growing solar power industry. In many developing countries like South Africa, the need for energy alternatives to replace traditional fossil fuels has become essential due to failing energy infrastructure. However, one of the biggest obstacles to the rapid adoption of renewable energy is the significant upfront capital required to install solar power systems – an amount that many poor and middle-class families can not easily attain, which has left this vulnerable demographic in the dark and without electricity. 

Public groups, businesses and governments have implemented many programs to address this paywall.  However, it seems that one of the most effective strategies in combating the price of solar power systems is the “renting revolution”. Unlike purchasing a solar system, with renting, you are not required to pay a large sum of money upfront. Renting a solar energy system requires you to pay a fixed sum each month, whereas, with loans, you may be subject to changing interest rates – depending on the loan setup. 

At Alumo Energy, we are not only proud to offer solar power rentals as a viable option for our clients, we are also happy to note that our rental system is easy to understand and is tailor-made to meet your requirements at an affordable price. With all the excitement about solar rentals, this article aims to further investigate what solar rental systems are, how the Alumo Energy rental system works and some advantages and considerations that should be taken into account before signing up with Alumo Energy. 

What Are Solar Rentals?

From the introduction, you may already be able to put together the basic idea of the solar rental system. However, we want to explore the topic further in this section. Here, we want to provide you with a clear definition of a solar rental system, compare it to the more traditional ownership model and note some of the differences between the two purchasing options. This will give us a firm foundation for further discussions throughout this article. 

Defining Solar Rentals 

The first thing, then, is to define solar rental systems. Simply put, a solar rental system is one in which a company owns several solar power systems, and instead of having you buy a unit outright, you can rent the system from them. This means that, although you do not own the system, you can access solar power. If you want this concept further explained, the best thing to do is to visit our website at Alumo Energy, where you can find a more in-depth explanation of the solar rental system.  

Our website provides some key information to help you understand what renting a system would require from you. Vital aspects highlighted include: 

• The rental agreement is generally a seven to twelve-year commitment, based on the rate at which you can repay. 
• Although there are generally two parties to the rental agreement, the system owner and the system operator (you), a third party is sometimes included if you are using someone else to install the solar system other than the system owner. 
• Another essential aspect to consider is that, once the solar rental agreement has ended and the system operator has paid back the cost of the solar system, you are given the option to buy the system outright. 

How Does Solar Rental Differ From Solar System Purchases?

Like the definition above, there is a clear distinction between renting and purchasing a solar system. The primary difference between the two purchasing agreements lies in ownership. When you buy a system, you own the rights to it outright and can use it as you see fit. However, solar rentals are distinguished by the fact that you do not own the system but instead are paying the system’s owners a monthly fee for the use of the system. This, of course, comes with stringent regulations on how to use the system and how to take care of it. 

Although ownership is a clear decision that many readers would have been able to guess without having it defined here, there are further differences that you may not have been aware of. These include: 

• Another easily understandable difference is the upfront cost. With rentals, you do not have to worry about this, as you will only be required to pay a nominal monthly fee. 
• Importantly, with a solar rental agreement, you are generally not expected to pay any maintenance and repair costs, as this would have been calculated into your monthly payment. 
• It is also critical to note that, with solar rentals, you would not have the flexibility of solar system owners. Solar rental is a long-term commitment in which the unit can not be altered, but it can be expanded on. Owners of solar systems, on the other hand, can either expand or sell their systems when convenient to them. 

Solar Rental Advantages 

Now that we better understand what solar power rentals are and how they differ from a straight ownership model, the next aspect we should look at here is the advantages of the solar system rental model. Some of the significant benefits of these rental agreements have already been alluded to above, yet there are so many other aspects to consider on both a macro (nationwide advantages) and micro (individual advantages) level. 

In the title of this article, we referred to solar rental systems as a sustainable energy revolution. This is because renting solar systems has lowered the bar of accessibility dramatically. Solar renting has given more people than ever before the power to utilise clean, sustainable energy. The net positive impact on the environment alone is a huge advantage already being studied and discussed in academic circles.

Although the environmental aspects are a significant consideration, for many, this would not directly impact their day-to-day lives. Here, then, Alumo Energy believes it essential to highlight advantages that would be of more direct benefit to you, encouraging you to make better decisions regarding your energy usage. 

Macro Advantages: 

These advantages are focused on the community, city, or country you live in. Although not as directly beneficial to you as the micro advantages discussed below in the short term, their long-term benefits should be something you consider when making a decision. 

• Grid stability is currently one of the most prominent issues South Africa is facing. In recent years, load shedding (planned outages to help keep the national grid intact) has increased dramatically. Solar rental allows more people to use solar energy, which in turn means that fewer people are reliant on the national grid, meaning there would be less strain on those old systems, meaning a reduction in load shedding in the long run. 
• Solar system renting has directly impacted the demand for solar systems. This means that more systems need to be manufactured and supplied to keep up with this increased demand. Here then, there is the possibility for further job creation as the solar system sector steadily increases in size. This, too, provides a macroeconomic benefit to your country and your community. 

Micro Advantages: 

Although the long-term benefits discussed above would benefit you in the long run, you may be looking for more instant financial benefits that could help justify the decision to sign up for a solar rental agreement today. Let us look at some of the individual advantages you can enjoy by joining the solar rental revolution today. 

• As mentioned in the previous section, one of the most important financial advantages of solar rentals is that you can avoid large upfront costs while still enjoying the benefits of clean energy. 
• Having constant access to solar energy through solar rentals also means that you will not have to rely on traditional fossil fuel energy supplied by failing parastatals like Eskom. Not only does this give you energy independence, but you will have a dramatic decrease in your energy bill every month. 
•  With solar rentals, you will also not have to worry about solar system maintenance, as this process can be costly. Your monthly payments would already have included and would minimise these costs for you. 
• Solar rentals generally have installation costs and processes included in the agreement. This means that the installation of your system (as you will see later on in this article) is handled for you, making it an easy move to solar energy. 

Solar Rental Considerations 

We, at Alumo Energy, are excited to highlight all the advantages listed above because we believe that solar rentals are a great way to improve the usage of solar power in South Africa. Although we believe solar rentals are positive to both you financially and the country as a whole, we believe highlighting some of the challenges is also important. 

We encourage all our clients to educate themselves fully before entering a solar rental contract. We have used our website to help our clients find out more about the solar rental process with a number of articles that can help you make the right choice. So before joining up, consider the following aspects: 

• Solar rentals is a long-term commitment, this means that once you have signed the contract you are in this process for between three and seven years. Luckily at Alumo Energy, we can help in this regard, and our in-house credit team can help reassure you of the financial commitment. 
• Any governmental tax breaks or renewable energy credits (RECa) in relation to owning a solar system may be afforded to the solar rental company rather than you as the system operator. Educating yourself on these financial technicalities is essential before entering into a solar rental agreement. 

How The Solar Rental Process Works 

After reading through all the information provided in this article, you may be more excited than ever to get involved with solar rentals. At Alumo Energy, we have one of the best and most convenient solar rental processes in the South African market. In this section, let us run you through this simple process: 

1. Get a quote, depending on the size of the system you would require and what you believe you could pay monthly. 
2. Our in-house credit approval service can approve your application within one working day. 
3. Once you have been approved, sign the agreed-upon contract. 
4. Once the solar rentals contract has been signed, we will do all the installation for you, making it a quick and painless process, including fitting solar panels and installing the battery and inverter. 
5. You then get to enjoy the power of solar energy without having to break the bank with large upfront costs. 
6. At the end of the agreed payment period, we then offer you the chance to purchase the system outright for a nominal fee so that you, too, can own a solar system. 

Conclusion: Alumo Energy Is Your Best Solar Rental Provider

This article aimed to educate our readers on the ever-growing popularity of solar rentals. At Alumo Energy, we believe that educating yourself on the advantages of solar renting is the first step in joining the sustainable energy revolution. 

Our years of experience and professional and technical services make solar rentals easy and straightforward, a simple process that can be started quickly on our website. So, don’t hesitate to book a free solar rental consultation and see how Alumo Energy can get you set up with a solar system today!