Project
Owner
|
Energea
Portfolio 3 Africa LLC
|
Project
Location
|
Witpoortje,
1725 South Africa
|
Technology
|
Rooftop
Solar
|
System
Size (AC/DC)
|
100
kW AC / 84 kW DC
|
Estimated
Year 1 Production
|
126,985.9
kWh
|
Coordinates
|
-26.138964°
S / 27.835161° E
|
Roof
Status
|
Verified
by a third-party engineer
|
Project
Status
|
Under
Construction
|
Useful
Equipment Life (Years)
|
25
|
SPE
|
The
Sun Exchange (SA) Bewind Trust
|
Offtaker
|
Laerskool Dr Havinga
|
EPC
Contractor
|
WHP
Energy Solutions (PTY) LTD
|
O&M
Contractor
|
WHP
Energy Solutions (PTY) LTD
|
Roof
Owner
|
Laerskool
Dr Havinga
|
Asset
Manager
|
The
Sun Exchange (PTY) LTD ("Sun Exchange")
|
Project Hard Costs
|
3,132,560 ZAR
|
Project Soft Costs
|
107,100 ZAR
|
Developer Fee
|
243,597 ZAR
|
Total Project Financing
|
3,483,257 ZAR
|
Debt Funding
|
N/A
|
Equity Funding
|
3,483,257 ZAR
|
Cell Owner IRR
|
12.8% ($USD)
|
Revenue
Contract Term
|
20
years
|
Asset
Rental Rate
|
1.63
ZAR per kWh
|
Annual
Adjustment
|
CPI
+ 2%
|
Acquisition Costs
|
N/A
|
N/A
|
|
|
|
Modules
|
398,286 ZAR
|
4.74 ZAR/Wdc
|
Inverters
|
253,000 ZAR
|
3.01 ZAR/Wdc
|
Mounting Materials
|
23,919 ZAR
|
0.28 ZAR/Wdc
|
Electrical Materials
|
321,640 ZAR
|
3.83 ZAR/Wdc
|
Installation
|
313,955 ZAR
|
3.74 ZAR/Wdc
|
Battery
|
1,310,875 ZAR
|
15.61 ZAR/Wdc
|
Rental Equipment
|
194,555 ZAR
|
2.32 ZAR/Wdc
|
Monitoring Equipment
|
97,901 ZAR
|
0.92 ZAR/Wdc
|
Others
|
286,492 ZAR
|
3.41 ZAR/Wdc
|
Hard Costs
|
3,132,560 ZAR
|
37.29 ZAR/Wdc
|
|
|
|
Basic Studies and Executive Project
|
18,600 ZAR
|
0.22 ZAR/Wdc
|
Contingency
|
30,000 ZAR
|
0.36 ZAR/Wdc
|
Engineering
|
53,000 ZAR
|
0.63 ZAR/Wdc
|
Site Management
|
5,500 ZAR
|
0.07 ZAR/Wdc
|
Soft Costs
|
107,100 ZAR
|
1.28 ZAR/Wdc
|
|
|
|
Developer Fees
|
243,597 ZAR
|
2.90 ZAR/Wdc
|
|
|
|
Pre-COD OpEx
|
N/A
|
N/A
|
|
|
|
Total CapEx (All-In)
|
3,483,257 ZAR
|
41.47 ZAR/Wdc
|
Total CapEx (All-In)
|
191,151 USD
|
2.28 USD/Wdc
|
Contract
|
Asset
Lease to Own Agreement
|
Date
|
April
24th, 2023
|
Parties
|
The
Sun Exchange (SA) Bewind Trust - As Lessor
Laerskool
Dr Havinga - As Lessee
|
Term
|
9
years and 11 months from the Lease Start Date, with the option to renew for a
further period of 9 years and 11 months
|
Object
|
Lessor
will lease to Lessee the asset, a photovoltaic electricity power generator,
located at 29 Andries Pretorius Street, Witpoortjie, Johannesburg, Gauteng.
|
Initial
Asset Rental Fixed Monthly Charge
|
ZAR
42,594
|
Asset
Rental Annual Escalation Rate
|
2%
plus the CPI rate for the 12 month period in question
|
Escalation
Frequency and Date
|
Annually
on the anniversary of the Lease Start Date
|
Payment
|
Monthly,
within 14 (fourteen) days of receipt of each monthly invoice
|
Late
Payment
|
Interest
of 2% (two per cent) per month
|
Currency
|
South
African Rand
|
Insurance
|
Lessor
shall insure the asset from the COD for an amount equal to the full insurable
value of the asset, the premiums and any increases payable in respect of such
insurance being for the account of the Lessor.
|
Buy-Out
Option
|
Lessee
has the option at any time to purchase the asset (and all its component
parts) from Lessor.
|
Termination
Buy-Out
|
In
case of termination pursuant to the Lessee's breach, Lessor is entitled, in
its sole discretion, to exercise the Termination Buy-Out Option, as a
consequence of which the Lessee shall be compelled to pay the Lessor the
Buy-Out Price.
|
Remedy
of Lessee
|
Lessee's
remedy against the Lessor for a breach of any obligation is to claim specific
performance. Lessee is precluded from cancelling the agreement pursuant to
Lessor's breach.
|
Dispute
Resolution
|
Arbitration
|
Contract
|
EPC
Contract including Long Term Performance Tests
|
Date
|
September
26th, 2023
|
Parties
|
Sun
Exchange (PTY) LTD - As Customer
WHP
Energy Solutions (PTY) LTD - As Contractor
|
Term
|
2
years from the Commercial Operation Date
|
Object
|
Technical
planning, design, the procurement and delivery of all necessary components,
manufacture, assembly and construction services as well as the installation
and connection to the Client's electrical reticulation and where grid tied,
to the local grid, which is necessary for delivery and transfer from the
Contractor to the Customer of a fully operational, turnkey Solar Plant, with
a total electrical capacity of 84.0 kWp of the installed modules and
2x100/80kWh battery energy storage system, which is suitable for safe and
continued operation for a period of at least 20 years after it is connected
to the electrical reticulation.
|
Construction
Contract Price
|
R
3,206,060.09 (exclusive of VAT)
|
Rate
Fluctuation
|
Should
the ZAR/USD forex rates fluctuate by more than 5% before NTP, the Contractor
shall be required to reprice the Construction Contract Price in accordance
with the forex rate fluctuation.
|
O&M
Scope of Works
|
The
Contractor shall provide Operation and Maintenance Services, for 2 years post
COD and until the achievement of Final Completion.
|
O&M
Contract Price
|
R
103,000.00 (exclusive of VAT)
|
Delay
Liquidated Damages
|
If
Contractor fails to complete the works by the due date, the Contractor shall
pay the Customer Delay Liquidated Damages.
|
Performance
Liquidated Damages
|
If
the guaranteed performance ratio or guaranteed availability is not achieved,
the Contractor shall pay the Customer Performance Liquidated Damages.
|
Warranty
Period
|
2
years starting from the date of issuance of the COD Notice
|
Performance
Guarantee
|
As
a condition to achieving the COD, the Contractor shall obtain and deliver (at
its cost) to the Customer a Performance Guarantee as security for its proper
performance of its obligations, in an amount no less than 5% (five percent)
of the Construction Contract Price.
|
Governing
Law
|
South
Africa
|
Disputes
Resolution
|
Arbitration
|
Design and Application
|
Bills
|
X
|
Helioscope Reports
|
X
|
|
Meter Data
|
X
|
|
Site and Roof Assessment
|
X
|
|
Self-Consumption Analysis
|
X
|
|
Interconnection Application
|
Interconnection Application
|
X
|
Permission to Install Letter
|
X
|
|
Offtaker
|
Offtaker Credit Analysis
|
X
|
Lease Agreement
|
X
|
|
Incentives
|
X
|
|
EPC
|
Construction Set*
|
X
|
Equipment Warranties
|
X
|
|
Equipment Purchase Order
|
||
Equipment Datasheet
|
X
|
|
EPC Contract
|
X
|
|
EPC Insurance
|
X
|
|
Asset Management
|
O&M Agreement
|
|
Asset Management Agreement
|
X
|
|
Investment
|
Project Model
|
X
|
|
|
|
|
December 31,
|
|
|
|
|
||
2023
|
2024
|
2025
|
2026
|
2027
|
2028
|
2029
|
2030
|
2031
|
2032
|
|
Gross revenue
|
R 0
|
R 497,096
|
R 535,488
|
R 561,553
|
R 589,443
|
R 619,285
|
R 651,216
|
R 685,382
|
R 721,940
|
R 761,057
|
Taxes on revenue:
|
||||||||||
Total
taxes on revenue
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Net revenue
|
0
|
497,096
|
535,488
|
561,553
|
589,443
|
619,285
|
651,216
|
685,382
|
721,940
|
761,057
|
Costs and expenses:
|
||||||||||
Operations
and maintenance
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Land
or roof rental
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Insurance
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
FX
Wire Fees
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Banking
Fees
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Postage
and Courier Services
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Travel
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Utilities
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Management
Fees
|
0
|
116,917
|
125,947
|
132,077
|
138,637
|
145,656
|
153,166
|
161,202
|
169,800
|
179,001
|
Other
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Total
costs and expenses
|
0
|
116,917
|
125,947
|
132,077
|
138,637
|
145,656
|
153,166
|
161,202
|
169,800
|
179,001
|
Income from operations
|
0
|
380,179
|
409,541
|
429,476
|
450,806
|
473,629
|
498,050
|
524,180
|
552,139
|
582,056
|
Interest and other income
(expense), net
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Depreciation and amortization
|
0
|
(348,326)
|
(348,326)
|
(348,326)
|
(348,326)
|
(348,326)
|
(348,326)
|
(348,326)
|
(348,326)
|
(348,326)
|
Income before provision for
income taxes
|
0
|
31,853
|
61,215
|
81,150
|
102,480
|
125,303
|
149,724
|
175,854
|
203,814
|
233,730
|
Provision for income taxes
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Net income
|
R 0
|
R 31,853
|
R 61,215
|
R 81,150
|
R 102,480
|
R 125,303
|
R 149,724
|
R 175,854
|
R 203,814
|
R 233,730
|
|
|
|
|
December 31,
|
|
|
|
|
||
2023
|
2024
|
2025
|
2026
|
2027
|
2028
|
2029
|
2030
|
2031
|
2032
|
|
Cash flows from operating
activities
|
||||||||||
Net
income
|
R 0
|
R 31,853
|
R 61,215
|
R 81,150
|
R 102,480
|
R 125,303
|
R 149,724
|
R 175,854
|
R 203,814
|
R 233,730
|
Adjustments
in net income:
|
||||||||||
Depreciation
and amortization
|
0
|
348,326
|
348,326
|
348,326
|
348,326
|
348,326
|
348,326
|
348,326
|
348,326
|
348,326
|
Other
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Changes
in assets and liabilities:
|
||||||||||
Accounts
receivable
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Prepaid
expenses and other current assets
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Other
assets
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Accounts
payable
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Other
liabilities
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Net
cash provided by operating activities
|
0
|
380,179
|
409,541
|
429,476
|
450,806
|
473,629
|
498,050
|
524,180
|
552,139
|
582,056
|
Cash flows from investing
activities
|
||||||||||
Purchases
of property and equipment, net
|
(3,483,257)
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Other
investing activities, net
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Net
cash used in investing activities
|
(3,483,257)
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Cash flows from financing
activities
|
||||||||||
Issuance
(repayment) of debt
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Issuance
(reduction) of equity capital
|
3,483,257
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Distributions
paid to investors
|
0
|
(347,603)
|
(407,989)
|
(427,814)
|
(449,028)
|
(471,727)
|
(496,015)
|
(522,003)
|
(549,810)
|
(579,563)
|
Net
cash used in financing activities
|
3,483,257
|
(347,603)
|
(407,989)
|
(427,814)
|
(449,028)
|
(471,727)
|
(496,015)
|
(522,003)
|
(549,810)
|
(579,563)
|
Net increase (decrease) in cash
|
0
|
32,576
|
1,553
|
1,661
|
1,778
|
1,902
|
2,035
|
2,178
|
2,330
|
2,493
|
Cash at beginning of the period
|
0
|
0
|
32,576
|
34,128
|
35,790
|
37,567
|
39,469
|
41,504
|
43,682
|
46,012
|
Cash at end of the period
|
R 0
|
R 32,576
|
R 34,128
|
R 35,790
|
R 37,567
|
R 39,469
|
R 41,504
|
R 43,682
|
R 46,012
|
R 48,505
|
|
|
|
|
December 31,
|
|
|
|
|
||
2023
|
2024
|
2025
|
2026
|
2027
|
2028
|
2029
|
2030
|
2031
|
2032
|
|
Assets
|
||||||||||
Current assets:
|
||||||||||
Cash
and cash equivalents
|
R 0
|
R 32,576
|
R 34,128
|
R 35,790
|
R 37,567
|
R 39,469
|
R 41,504
|
R 43,682
|
R 46,012
|
R 48,505
|
Accounts
receivable
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Prepaid
expenses and other current assets
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Total
current assets
|
0
|
32,576
|
34,128
|
35,790
|
37,567
|
39,469
|
41,504
|
43,682
|
46,012
|
48,505
|
Property and equipment
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
Depreciation
|
0
|
(348,326)
|
(696,651)
|
(1,044,977)
|
(1,393,303)
|
(1,741,629)
|
(2,089,954)
|
(2,438,280)
|
(2,786,606)
|
(3,134,932)
|
Tax credits
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Other assets
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Total assets
|
R 3,483,257
|
R 3,167,507
|
R 2,820,734
|
R 2,474,070
|
R 2,127,522
|
R 1,781,098
|
R 1,434,807
|
R 1,088,659
|
R 742,663
|
R 396,830
|
Liabilities and stockholders'
equity
|
||||||||||
Current liabilities:
|
||||||||||
Accounts
payable
|
R 0
|
R 0
|
R 0
|
R 0
|
R 0
|
R 0
|
R 0
|
R 0
|
R 0
|
R 0
|
Short-term
debt
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Accrued
expenses and other current liabilities
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Total
current liabilities
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Tax payable
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Long-term debt
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Other liabilities
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Total
liabilities
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Stockholders' equity:
|
||||||||||
Additional
paid-in capital
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
3,483,257
|
Retained
earnings
|
0
|
(315,750)
|
(662,523)
|
(1,009,188)
|
(1,355,736)
|
(1,702,160)
|
(2,048,450)
|
(2,394,598)
|
(2,740,594)
|
(3,086,427)
|
Total
stockholders' equity
|
3,483,257
|
3,167,507
|
2,820,734
|
2,474,070
|
2,127,522
|
1,781,098
|
1,434,807
|
1,088,659
|
742,663
|
396,830
|
Total liabilities and
stockholders' equity
|
R 3,483,257
|
R 3,167,507
|
R 2,820,734
|
R 2,474,070
|
R 2,127,522
|
R 1,781,098
|
R 1,434,807
|
R 1,088,659
|
R 742,663
|
R 396,830
|
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