SolarAfrica, a Pretoria-based renewable energy provider, has raised R1.5 billion ($94 million) to build SunCentral 2, the next 114 MW phase of its utility-scale solar project in South Africa’s Northern Cape. The funding will support the delivery of affordable power to commercial and industrial customers, beginning in 2026. The raise was provided by Rand Merchant Bank (RMB) and Investec Bank Limited, both of which also backed SunCentral 1, the first 114 MW phase that reached financial close in late 2024. With the new round, total funding for the SunCentral project now stands at R3.3 billion ($207 million). SunCentral is SolarAfrica’s bet on wheeling-led renewable infrastructure. Rather than building on-site solar systems that require upfront capital, the company generates power at scale and wheels electricity through the national grid to multiple business customers under bilateral agreements. In a press statement seen by Condia, SolarAfrica’s CEO, David McDonald, stated, “SunCentral is a long-term infrastructure investment that gives companies the ability to manage their costs, cut emissions, and reduce reliance on utility power that is vulnerable to tariff hikes.” Founded in November 2011 by David McDonald and James Irons, SolarAfrica was originally incorporated as NVI Energy in Mauritius. The company now operates across Southern Africa and has twice been named Africa Solar Company of the Year by the Africa Solar Industry Association. Beyond generation capacity, SolarAfrica is investing directly in grid infrastructure, one of South Africa’s biggest renewable energy constraints. The state-owned primary electricity utility, Eskom’s transmission network was not designed for decentralised, remote power plants, limiting how much renewable energy can be evacuated from high-sun regions like the Northern Cape. Each SunCentral phase allocates funding to the project’s Main Transmission Substation (MTS), engineered to handle up to 2 GW of renewable power. The substation is designed to strengthen grid capacity while enabling faster connection for future projects. SunCentral also anchors SolarAfrica’s broader 3 GW wheeling pipeline currently under development across South Africa. At full scale, the project is expected to reach 1 GW, making it one of the country’s largest solar developments built specifically for one-to-many wheeling. As with SunCentral 1, the second phase includes community programmes focused on job creation, skills development, education, and local procurement around the project site. “With wheeling, control shifts back to commercial customers,” McDonald stated. “Instead of reacting to tariff increases, businesses can plan growth around a more predictable energy mix.”
