South African businesses urgently need more reliable, lower-cost power. However, asbestos roofing in many older commercial and industrial buildings has become a major barrier to rooftop solar adoption.

Current asbestos safety rules mean that standard roof-mounted solar systems cannot be installed directly onto these roofs. This adds cost, complexity, and delays to projects. In response, a more integrated solution is emerging: replacing asbestos roofing and installing solar as a single, coordinated energy upgrade. This approach removes compliance obstacles while improving insurability, strengthening long-term reliability, and future-proofing the building as a commercial asset.

Why asbestos rules matter for solar projects

The asbestos regulations are designed to prevent disturbance of asbestos-containing materials. In practical terms, this means that roofs containing asbestos cannot be drilled into, cut, or used to support new equipment - including solar panels.

As a result, solar installations on these buildings typically only move forward once the asbestos roofing has been replaced or a compliant alternative mounting solution is in place. 

For many businesses, particularly in older properties, this has shifted the conversation from whether to install solar to how to do so safely and legally, while addressing ageing roofs that are often difficult to insure, costly to maintain, and increasingly restrict access to on-site renewable energy.

Some businesses have attempted to work around asbestos restrictions by installing solar on raised steel structures above the existing roof. However, this does not remove the asbestos or resolve the underlying compliance issue. Regulatory obligations, liability exposure, and insurance complications remain in place.

The Growing Case for Solar

According to GreenCape’s 2025 Energy Services Market Intelligence Report, embedded solar photovoltaic (PV) systems can deliver electricity at costs well below prevailing grid tariffs for commercial and industrial users. In broad terms, the levelised cost of electricity from embedded solar PV is typically 40–60% lower than grid power, depending on tariff structures and usage patterns.

In addition, qualifying solar installations may be eligible for a 100% write-off of the system cost in the first year under Section 12B of the Income Tax Act, subject to eligibility.

Yet for many buildings with asbestos-containing roofing, these advantages remain out of reach - not because the business case for solar is weak, but because the cost and complexity of the roof replacement remains prohibitive.

A High-Cost Barrier and a New Way to Overcome It

The cost of replacing an asbestos roof remains one of the largest obstacles facing businesses seeking to adopt rooftop solar. To address this, Candi Solar - a Swiss-founded solar developer, financier, and operator serving South Africa’s commercial and industrial sector - has introduced a financing model that integrates roof replacement and solar installation within a single, fully financed energy upgrade.

Rather than requiring businesses to fund the roof replacement separately, Candi Solar can finance asbestos roof removal and replacement upfront as part of a coordinated solar project, allowing both elements to be structured within the same capital framework.

To ensure safety and regulatory compliance, Candi Solar works with accredited asbestos removal specialists who manage the required surveys, removal, replacement and statutory clearance process before solar installation begins.

Performance-Linked Instalment Sale (PLIS)

To make solar installation more financially accessible, Candi Solar offers a Performance-Linked Instalment Sale (PLIS) model - a financing structure that reduces the need for significant upfront capital by spreading the cost of the solar PV system over time, while still enabling businesses to benefit from applicable solar incentives and allowances.

Under PLIS, customers take ownership of the solar asset from the outset, with repayments linked to the system’s actual performance. If generation falls below the agreed performance benchmark, instalments automatically adjust downward, providing a built-in cash-flow buffer.

Where a roof replacement is required to enable a roof-mounted solar installation, the associated asbestos roof replacement costs can be structured alongside the solar system within the same overall agreement, rather than as a once-off capital outlay.

This enables businesses to address ageing roofing and install solar PV as a single, coordinated project, with the solar system financed under PLIS to unlock lower-cost on-site energy and applicable incentives.

Richard Flamand, Candi Solar’s South Africa Lead, says the approach has transformed what was previously a prohibitive compliance challenge into a financially viable pathway to solar adoption.

“By structuring asbestos roof replacement and solar installation together within a single, integrated financing model, companies can modernise essential infrastructure and secure long-term energy cost stability without locking up capital. The delivery and performance risk sits with Candi Solar, reducing complexity for the customer while PLIS provides a clear path to ownership, with predictable repayments.”

A Practical Next Step for Businesses

Businesses operating from asbestos-roofed buildings - or evaluating rooftop solar to reduce costs and strengthen resilience - should begin by confirming whether their facility has a legally compliant Asbestos Inventory. If one does not exist, or is out of date, a certified asbestos inspection professional must be appointed to complete the required survey.

From there, Candi Solar works with accredited asbestos and engineering partners to help businesses understand their compliance obligations, assess whether the roof is structurally suitable for solar, and explore compliant pathways to on-site generation. Where roof replacement is not the preferred option, alternative solutions - such as carports or ground-mounted systems - may also be considered, depending on site constraints and long-term objectives.

“Many businesses feel overwhelmed by the compliance and cost barriers around asbestos and solar,” Flamand notes. “Our role is to remove that friction - making it simple, safe, and financially viable to transition to renewable energy.”