Case Study
Cape Town· Q2 2026· R1.5M
Chepstow Properties deployed a Solar + Battery Arbitrage strategy at their Cape Town warehouse to take control of rising Time-of-Use tariff costs hitting their logistics tenant during peak hours. The project has a projected payback period of just 51 months, and a municipal bill reduction of 41.8% - reducing the tenant's occupancy costs and turning the property into a more resilient, valuable asset.
01
The Challenge
Chepstow Properties' warehouse in Cape Town was facing pressure from rising electricity costs that were quietly working against them. Billed on a Time-of-Use tariff, the site faced peak rates of over R7/kWh in high season — and the warehouse's busiest operational hours fell almost perfectly inside those expensive windows. With no way to shift or control when energy was consumed, every tariff hike hit hardest at exactly the hours the tenant needed power most, pushing utility bills higher, squeezing occupancy costs, and making the property harder to compete with more energy-efficient alternatives. The goal was straightforward: take control of the site's energy costs, pass real savings through to the logistics tenant, and turn the property into a stronger, more valuable asset in the process.
02
Our Solution
We designed and installed an 82.8 kWp rooftop solar PV system paired with an 80 kWh Battery Energy Storage System, with the battery sized specifically around the site's actual load profile during its two daily peak windows.
The battery operates on a two-cycle daily strategy. Each evening, when the grid is cheapest and the warehouse load is low, the battery charges from the grid overnight. It then deploys through the first morning peak window, keeping the site off expensive grid power entirely during that period. As the day progresses, the solar array generates more than the warehouse needs during off-peak midday hours, and that excess production recharges the battery for a second time. By late afternoon, the battery is ready again - deploying through the evening peak and once again sidestepping expensive Peak rates. By cycling the battery twice per day we are able to avoid oversizing the batteries and keep the capital cost efficient.
03
The Outcome
The results make a compelling case. In year one alone, the system is expected to yield over R360,000 in municipal savings, and over the full decade, a total R5.18 million against a capital investment of R1.5 million.
Municipal tariffs continue to rise; the cost of solar stays fixed, which means the gap between what the grid charges and what the system costs to run widens every single year. For the logistics tenant, lower utility costs mean reduced operational overhead and greater confidence in staying put - which is exactly what a landlord wants to hear. For Chepstow, that translates into a more stable occupancy relationship and a stronger negotiating position at renewal. Beyond the numbers, the warehouse now carries energy resilience and a green credential that is increasingly factored into commercial property decisions. An asset that was once fully exposed to municipal tariff volatility now generates its own energy, controls its peak costs, and delivers compounding returns. What started as a cost problem has become a long-term competitive advantage baked into the property itself.
Project Results
51 Months
Payback Period
41.8%
Energy Bill Reduction
50.4%
Grid Consumption Offset
>95%
Peak Coverage
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