South Africa’s biggest bank by assets, Standard Bank, has said, according to its data, due to the spate of rolling power cuts in South Africa, many households and businesses are turning to alternative energy sources, including solar energy as a means of power continuity.
The average buyer in South Africa will have to spend a considerable amount upfront to buy and have a solar kit installed.
In addition, most solar kits are imported and resold by suppliers who are not well known in the market, creating a potential for distrust and uncertainty between transacting parties.
Business Report spoke to a Cape Town-based owner of Torga Optical in Somerset West, Gary Willman, who recently took his home off the electricity grid and converted to solar energy.
Wilman said that he always wanted to make use of solar energy, but the technology did not exist in South Africa until recently.
On financing the conversion, Wilman said, “We considered financing the project, as banks have created loan initiatives to help you get off the electricity grid, but we financed it ourselves in the end.”
He said he sought the services of the company, Solar Advice, for the hardware and a private electrical company for the installation, J Electric.
He added that he has experienced no issues since he converted to solar energy and with regard to monthly costs, he says he expects to see a return on the investment in about two years.
“There is a minimum levy on our utilities which still needs paying even though we generate our own power. We have signed up with the Western Cape to contribute to the grid but we haven’t reached that point yet,” Wilman further said.
Solar works even when it’s cloudy
Wilman says that there are options when installing solar energy into a household, as some panels work even if it is cloudy outside.
He says, “We selected the monocrystalline panels (555w) for our installation due to the fact it will generate power from UV, so overcast days don't cause a concern.
Wilman further added, “We are extremely happy to be versatile with our energy. I believe the Western Cape have embraced the transition to renewable energy and we should see significant changes within the next 5 years.”
Standard Bank’s Escrow service
Data gleaned from Standard Bank’s Escrow platform has seen an increase in renewable energy transactions.
The bank’s digital escrow solution bridges the trust gap in this high-value sector, giving customers the peace of mind that their funds are secure whilst waiting to receive their products and suppliers benefit from guaranteed sales with zero friction.
The bank says that the most common transaction type that customers are opting for, is milestone-based payouts.
Standard Bank allows milestone transactions (progress payments) where a portion of the principal amount is released upon the completion of certain milestones.
For example, in the most recent renewable energy transaction worth R240 000, 15% of the funds were released after the inverter had been delivered to the customer's premises, 30% after the solar panels and brackets were delivered, 30% after the lithium batteries were delivered, and the remaining 25% after all components had been delivered and installation was complete.
BUSINESS REPORT