Billionaire Patrice Motsepe’s African Rainbow Energy (ARE) has acquired a controlling stake in SOLA Group.
The transaction increased ARE’s stake in the business from 41% to 83%, taking majority control over its R20 billion-plus renewables portfolio.
The acquisition has resulted in ARE becoming the biggest company of its kind, with SOLA Group being South Africa’s largest corporate-serving Independent Power Producer.
SOLA Group supplies electricity directly to businesses through on-site renewable energy projects and Eskom’s wheeling programme.
This allows power generated in one location to be transmitted across the national grid to customers elsewhere.
The company currently has 1,100 MWp of solar photovoltaic capacity and 730 MWh of battery energy storage either operating or under construction.
Its client base includes major industrial, mining and retail companies such as Sasol, Eskom, Tronox, Aspen, AB InBev, Woolworths, Pick n Pay, Clicks Group, Mr Price Group and Coca-Cola Beverages Africa.
SOLA also provides energy solutions to property groups, including Redefine Properties, Growthpoint Properties, Resilient REIT and Vukile Property Fund.
SOLA also provides energy to major financial service groups and healthcare companies such as Old Mutual and Netcare.
Following the increased investment in SOLA Group, ARE now has exposure to a diversified renewable energy and battery storage portfolio totalling 2,000 MW. Around 1.5 GW of this portfolio is already operational, while another 500 MW is under construction.
ARE chief executive Brian Dames said the partnership between ARE and SOLA over the past five years had already delivered substantial growth.
“Our partnership with the SOLA Group over the past 5 years has seen the company grow significantly by delivering clean energy solutions to large South African corporates,” said Dames.
“This acquisition, together with the additional investment, supports our vision of building a large-scale energy company that uses modern technology to provide affordable, clean energy to our clients.”
Motsepe said the transaction would help position ARE among the country’s largest independently owned energy companies.
“This acquisition positions African Rainbow Energy as one of the largest and most competitive, independently owned energy businesses in South Africa,” he said.
Push to build a world-class energy company
Motsepe said that the deal will help ARE continue to provide affordable electricity, contribute to the economic growth of the countries in which it operates, and deliver competitive returns to its investors.
“This transaction also advances our objective of building African Rainbow Energy into a world-class African energy company.”
SOLA Group director Dom Wills said the company had built its business model around helping corporate clients transition toward lower-cost and lower-carbon energy systems.
“SOLA has focused on the journey of the corporate consumer, mapping their least cost pathways to net zero carbon,” said Wills.
“This requires an in-depth understanding of complex technology options, regulatory pressures, and decentralised generation and storage.”
He added that the company looks forward to multiplying its impact in the market as a result of this transaction. The acquisition will also bring leadership changes at SOLA Group.
Founders Simon Haw, Chris Haw and Dom Chennells will remain involved in the company as non-executive directors and shareholders, while stepping back from executive responsibilities.
“Our commitment to SOLA remains consistent with our continued shareholding and board roles,” said Simon Haw.
“We remain focused on creating a mechanism that allows our hardworking and talented people to advance into leadership roles, ensuring the long-term sustainability of the business, and we believe this step accelerates that process.”
Dom Wills has now returned as group chief executive, a role he previously held between 2017 and 2024, with the broader management team remaining unchanged as the business enters its next phase of expansion.
