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More Than Sun In Your Eyes: Fedgroup’s Impact Farming Solar Offering

There are many ways to monetise property investments, but Fedgroup’s Impact Farming solar offering combines monetising rooftop space with all the social and tax benefits of green energy. Suraj Lallchand unpacks the benefits for business owners and landlords.

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As a business owner and landlord, have you considered all the ways that you can leverage the fact that you own the building you operate from?

“Landlords of commercial and industrial buildings often don’t think about their rooftops, but they’re also real estate that can be used to bring additional revenue into the business,” explains Suraj Lallchand, Director of Fedgroup Ventures.

“Through our Impact Farming platform, we build grid-tied solar plants that allow property owners to monetise their rooftops.”

In order to qualify for a solar plant, the business should use more than 15 000 kWh per month. “As a rule of thumb, this means your electricity bill should be at least R15 000 to R20 000 per month, however we do a full assessment to gauge whether your property is viable for a solar grid.” If the property does qualify, there are three options to choose from.

Related: What Business Should You Start In Africa?

1. Landlord roof rental

suraj“If a landlord has a rooftop available, we can spec it to see how much solar we can put on it. We then lease the rooftop from them and sell the individual panels to investors. The solar energy produced from the rooftop is then either consumed by the property’s tenants or by the business itself if the property owner is also the tenant.

“Solar electricity is more cost-effective than Eskom’s electricity. It’s a grid-tied solution, so businesses generally still use both solar and Eskom. The size of the solar plant, the weather and how much power is consumed during the day versus at night determines how much energy is drawn from solar compared to the city’s power grid.”

The rental option offers the social perks and carbon credits of running a green business as well as the cost savings of solar versus Eskom’s electricity, without the property owner carrying any risk.

“Our investors earn a return between 10% and 12%, you’d make about 15% to 20% as the landlord, and we make a platform fee of 1% to 2%.”

2. Lease to Own

“In this case, we will fund the solar plant and the property owner will only pay back as much as they consume every month, at the same rate that they’re currently paying Eskom. Within four to six years the system is paid off, and since it lasts 20 to 30 years, the business then benefits from free solar energy for the next 14 to 24 years.

“We created an SPV to finance the solar plant and we amortise the loan until it’s down to zero, at which point we hand over ownership to the property owner. This option is essential for property owners who believe that solar is a good option, but want to see that it works before they take on all the risk of the project themselves. They are tied into a contract for four to six years, but they will never spend more than they currently spend on electricity, thus containing their risk.”

Because of the Section 12B allowance in the Income Tax Act, which relates to renewable energy tax incentives, even though the property owner doesn’t spend the capital outlay to build the solar grid, they still receive 100% of the tax allowance in the year the plant is commissioned. “This is a 100% tax deduction of the cost of the solar plant in that tax year,” Suraj explains.

Property owners who choose the rental option do not qualify for the tax exemption, as the investors in the solar panels can claim that tax deduction. But owners who choose the Lease or Build option (below) will receive the full tax benefits.

Related: Solar Tube Installations

3. Build

“With the Build option, you finance and therefore own the plant yourself. From the moment it’s operational, you benefit from any solar energy produced, at no cost to the company.

“Property owners interested in this option need to determine what their IRR (internal rate of return) is from their investment in solar to see if it makes sense for them. For example, if you can borrow at prime (10%), but your IRR is 20% or 30%, then it’s a sound investment. This option is based on the risk the business owner is willing to take on solar, but as is often the case, with higher risk comes a higher return.”


The benefits of going solar

  • There are tax benefits and carbon credits associated with renewable energy.
  • A Fedgroup subsidiary, Emergent Energy, builds the plants, and uses only Tier 1 technology with a 25-year guarantee.
  • You earn an income.
  • The entire project is measured against triple bottom line — not only financial return, but social return as well.

 

Established in 1990, Fedgroup has grown into South Africa’s leading independent financial services group. Our independence has allowed us to develop our own point of view on the business of insurance and investment. We put people before profit. We believe in old-fashioned ideas like honesty, integrity and dignity. And we place a lot of value in our dedicated and committed staff.

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Buy Or Invest In The Next Futuredev Properties Sandton Development

Looking to buy or invest in the next up and coming Sandton residential development? Futerdev Properties are currently developing Full-Title Free standing units, perfectly located just a few km’s away from the hustle and bustle of Sandton’s Central Business District.

Futuredev Properties

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Nearly half of all the office development taking place in South Africa right now is happening in Sandton. Sandton Central is the epicentre of this development, which includes many of the most cutting-edge, exciting and innovative new buildings on the continent.

Sandton Central is well established as Africa’s financial and business capital and continues to grow with developments that embody its vibrant, high-energy ‘live, work, play’ environment. It also currently holds the title of Africa’s Riches Square Mile.

With more people looking to be part of this live, work, play environment and the number of foreigners travelling to Johannesburg for business and work, the demand for residential property around Sandton Central has grown exponentially.

Live, Work And Play: Your Home Away From Home

Futuredev Properties specialises in developing Full-Title Residential Homes in the Sandton Area – Morningside and Bryanston to be specific. The most recent surveys have listed Bryanston as one of the better performing suburbs in terms of Capital Growth.

Our properties offer family living and a home-away-from-home feeling for those working in and around Sandton on longer or shorter assignments.

FutureDev Properties was founded by Akbar Hassim. We have established ourselves not only as an independent, but also a Turnkey Developer – being able to buy Land, Finance the Real Estate Deals, Create, Control and Orchestrate the process of the Development from beginning to end.+

“Our approach to Property Development and Investment therein involves thorough financial and delivery risk analysis, thereafter followed by focused and efficient delivery.”

This approach is underpinned by many years of experience, and an impeccable entrepreneurial spirit.

Buy And Invest In The Latest Residential Developments

We have a number of Residential Developments currently underway, each at various stages. These Full-Title Free standing units, afford residents space and comfort within the security of cluster/ estate living. Perfectly located just a few km’s away from the hustle and bustle of Sandton’s Central Business District, and within close proximity to all major Malls & Shopping Centres, Schools, Hospitals, Gyms and places of worship.

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We afford buyers and investors an opportunity to buy or invest in Prim Residential Real Estate, that provide the perfect balance of Excellent Capital Growth and Steady Income Yields.

Our Offering For Investors & Buyers

  • Full-Title Free-Hold Residential Cluster Developments
  • Prime locations, close to all essential amenities
  • Perfect balance of high Capital Appreciation and Steady Income Yields
  • Investor buyers can purchase with Rental Guarantees

*Limited number of investor units available

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Smoothie Franchise Opportunity: Puré Frooty Is A One-Of-A-Kind Smoothie Franchise Business

Looking for the next greatest franchise opportunity? Puré Frooty Smoothie is a highly perfected Australian business model launching in the South African market that doesn’t require extensive shop fitting or a large workforce.

Pure Frooty Smoothie

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Vital Stats

Puré Frooty Smoothie is a unique business model to the South African market. A delicious, fruit filled smoothie will be created at the touch of a few buttons.

An Innovative Franchising Concept

This innovation in the healthy smoothie industry is ground breaking for South Africa. The machine is manufactured in Australia by a highly skilled team. It took six years to perfect this business model for the consumer market.

The vision of Puré Frooty Smoothie is to offer convenient on-the-go smoothies for anyone. The experience and quality will always be of the highest standard. We aim to be a staple convenience in malls, schools, office parks and hospitals. This is a platform that will allow for self-growth for passionate entrepreneurs.

Our mission is to create a unique customer experience. We want to satisfy the nutritional needs of customers by providing quality smoothies. Puré Frooty Smoothie will be packed with all the goodness a smoothie should offer.

Related: Why Your Franchise Should Adopt A Shared Value Business Model

The four values we pride ourselves in are:

  1. Convenience
  2. Consistency
  3. Quality
  4. Customer Satisfaction.

Why Consider This Franchising Opportunity

healthy-smoothie-franchise

Extensive research into the business model and market

Puré Frooty Smoothie was an idea, researched widely, by people looking to simplify the business process for the consumer and business owner. There was a gap in the market for simplified customer service and a demand for a quicker turnaround time.

Simplified process for setting up a business

For an entrepreneur it can be very overwhelming to start or buy a new or existing business. There are so many crucial decisions that need to be made from the beginning and new concepts to adapt to.

Puré Frooty Smoothie simplifies that drastically:

  • Free-standing machines: The business model revolves around a free-standing vending machine which needs to be visited to refill and maintenance.
  • No shop-fitting required: There is no need for shop fittings or a large work force. All that is required is an inside space for the machine with a power supply.
  • Minimal human resources needed: In terms of a work force, you could either do it yourself or have one person to assist you. There is also a part time involvement where refill station teams can refill and maintain the machine.
  • Cashless business: The business is completely cashless so there are no worries of a note jam, full cash canister or insufficient denomination rand values. More importantly the machines would do a higher turnover than an ordinary vending machine so safety of no cash is important.
  • Easy tracking of stock and performance: A cloud-based system is linked to the point of sale which allows you to monitor your performance and stock from the back-office platform at any given time.
  • Efficient handling of maintenance: With a live point of sale system, the business is linked to a software which monitors the operations of the machine. Should anything malfunction an immediate notification will be sent with a diagnostics report.
  • Human error is eliminated: Everything is done with a computer which leaves little to no room for errors. It is self-order and very user friendly.

Related: SA Fast Food Franchising On The Rise

Why Will Customers Love It

Puré Frooty Smoothie offers a vending machine that can produce a delicious smoothie in forty seconds. An informative touch screen ordering panel which displays all the nutritional information of the smoothie ordered and has the current news and weather.

No time wasted for the consumer. In fact, it’s a learning session disguised as a waiting period. The machine has two wash cycles after every smoothie is made to be freshly prepared for the next smoothie, business hygiene is important.

Consumers live in the fast lane. We are looking for something quick and most times we would like to be healthier. With the hustle and bustle of today’s life every little bit helps. Puré Frooty Smoothie fills that gap in the market.

Interested in Becoming A Franchisee?

Visit our Franchise Info Page for everything you need to know about how to become information a Puré Frooty Smoothie Franchisee owner.

You can also call or write to us:

Phone / 012-942 6360
Email / info@purefrooty.co.za 

Want to know more about this franchise? Watch the video below for more.

 

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Enter The Total Startupper Of The Year Challenge

Are you a young entrepreneur? Do you have a project you believe in? Is it innovative and does it address a social or community challenge in your country or for your fellow citizens? Register and apply now. You could be the Startupper of the Year!

Total South Africa

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Startupper of the year challenge

After the success of the first Challenge in 34 African countries, this year’s has been extended to a total of 55 countries around the world.

3 winners from each country will receive financial support, extensive publicity and coaching. From among these 3 winners per country, we will select grand winners by region, who will be provided with exposure.

This year, a Top Female Entrepreneur category has been introduced. During the first Challenge, women accounted for almost 25% of the winners, even though they only made up 13% of the applicants.

Related: Business Plan Format Guide

With this special award this year, we hope to give the women entrepreneurs an extra push to take part. It is also aligned with other Total initiatives for women.

The 2018/19 Challenge

We aim to support good ideas and projects that help address a widespread problem affecting communities in your country. It could be about providing educational opportunities, reducing child mortality, improving public health, developing access to electricity in rural areas, improving road safety on the roads or building houses with eco-friendly materials — in fact, anything that could make life better in your country.

Tell us how your project will help more and more people over time, at home or even abroad. Tell us how it empowers people, improves living conditions, and contributes to overall economic well-being.

Anyone can change the world — teenagers or graduates, men or women. As long as you believe in your project and want to make things better, take this opportunity to participate. You could be the next Startupper of the Year or the Top Female Entrepreneur!

Enter the Total Startupper Of The Year Challenge Here

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