Rent-to-own vs solar subscription in South Africa: which one leaves you better off?
First Energy Solar Solutions
Solar subscriptions (“solar as a service”, “solar rental”) are heavily advertised: no deposit, a fixed monthly fee, everything maintained for you. For some households they are the right call. For most, the same monthly budget put into a rent-to-own plan ends with you owning a system that keeps saving you money for another fifteen years. Here is an honest comparison.
The four ways to pay for solar
| Cash | Bank finance | Rent-to-own (First Energy) | Subscription / rental | |
|---|---|---|---|---|
| Upfront | Full price | Deposit varies | Depends on your credit/risk profile | Usually none |
| Monthly | – | Loan repayment, typically 5–7 years | Fixed plan, 3 / 4 / 5 years | Fixed fee, typically 5-year contract |
| Who owns it | You | You | You, at the end of the plan | The provider – always |
| What you own after year 5 | System | System | System | Nothing (buy-out at market value or hand back) |
| When tariffs rise 6–9% a year | Your saving grows | Your saving grows | Your saving grows | Your fee stays the same – the provider keeps the gain |
| Maintenance | Your call (we offer plans) | Your call | Your call (we offer plans) | Included |
| Insurance | Add to household policy | Add to household policy | Add to household policy | Included |
| Choice of equipment | Full | Full | From our packages | Provider’s standard kit |
| SSEG registration | We do it | We do it | We do it | Provider does it |
| If you sell the house | System adds value | Settle loan | Settle balance or transfer | Cancellation fee or transfer to buyer |
| Lifetime cost (15 yrs) | Lowest | Low | Low | Highest |
A worked example
Household in Cape Town spending R3,000 a month on electricity.
Subscription: about R1,200–R1,900 a month for a 3–4 kW system with a small battery, on a 5-year contract. Over five years you pay roughly R72,000–R114,000 and own nothing. Continue at a reduced rate, buy at fair market value, or hand the system back.
First Energy rent-to-own, Silver package (3.3 kWp, 5.5 kW inverter, 5 kWh battery): R2,367 a month over 5 years. Over five years you pay about R142,020; then it is yours, with the remaining years of warranty and no monthly fee. At today’s tariffs the system saves roughly R2,000–R2,400 a month, and that saving grows every July.
When a subscription makes sense
- You rent your home, or plan to move within two or three years.
- You cannot or do not want to add the system to your household insurance.
- You want zero involvement in maintenance and are happy to pay for it every month, forever.
When rent-to-own makes sense
- You own your home and plan to stay five years or more.
- You want the saving to keep growing as tariffs rise, instead of a flat fee.
- You want to choose your equipment (battery size, inverter brand, panel type).
- You want an asset that adds value to the property.
Read the fine print on any solar contract
- What is the cancellation fee in year 1, 2 and 3?
- Is the monthly fee fixed for the full term, or does it escalate?
- Who owns the system at the end, and at what price?
- Is the inverter on the City of Cape Town’s approved list (so it can be registered and export)?
- What happens to the feed-in credits – you or the provider?
- Who pays the Home User tariff’s fixed monthly charge? (You do, in every model – size the system accordingly.)
Subscription figures quoted are indicative market rates in September 2026 and change often. First Energy plan figures are from our current package table.
Contact us if you have any questions.
SARS FAQ on the 2023–2025 enhanced incentive (now expired) – Learn more.