​FNB has opened up applications for individual solar loans tied to the government’s Energy Bounce Back Loan Guarantee Scheme.

The scheme was announced by the National Treasury earlier this year and is administered by the South African Reserve Bank.

The aim of the scheme is to help customers mitigate the impact of power supply challenges and load shedding by giving them easy access to financing at a lower interest rate.

The loan scheme was open to commercial users earlier in the year, but individual loans have only become available in recent months. Standard Bank activated its personal loan applications in September, with FNB launching its offering this week.
​

According to FNB, the loan for individuals is considered a personal loan and will initiated at a personalised interest rate, but once proof of use is verified – ie, the bank verifies it will be used for solar panels and related expenses like inverters – the rate will be dropped to prime plus 1%.

At current rates, this would be an interest rate of 12.75%.

Businesses and commercial customers can take loan options between R10,000 and R10 million, while individuals will be limited to R3,000 to R300,000.

Notably, the loan scheme doesn’t activate in the typical way and comes attached with a host of terms and conditions.

In order to access the benefit, customers will first need to obtain a quote from a reputable solar supplier.
They will then need to apply for an FNB Personal Loan.
The loan amount must not exceed R300,000 and must also be within 90% of the invoice received.
Applicants will be quoted on a personalized interest rate.
After the personal loan has paid out, customers will need to pay a deposit to the supplier.
Once the deposit has been paid, they will need to log onto the FNB App to activate the benefit.
The interest rate will only be lowered on the FNB Personal Loan once the benefit has been activated and all supporting documentation is received and verified.
Activation may take up to 10 business days.
The rate will only be effective from the date of activation and will not backdated.
Other requirements for the loan include that the funds must be used for solar panels and other solar-related expenses. Solar-related expenses can include batteries, inverters, and installation costs.

According to FNB, the invoice must include solar panels as part of the quote.

“Solar must be part of the solution being financed. If there is no generation on the invoice, the loan will not be converted.”

This is in line with the National Treasury’s overall goal with opening up financing for solar – as well as the rooftop solar tax incentive – which is to increase energy generation in the country.

Benefit must be activated within two months (60 calendar days) after payout on the FNB Personal Loan.

“As per National Treasury, only one credit product per customer will be allowed to benefit from this scheme. This means if you’ve already taken up a solar benefit credit product with us or with another bank you will not qualify for this benefit,” FNB said.

Source>>>>>>

The Department of Agriculture, Land Reform and Rural Development (DALRRD) has, together with the Land Bank, launched a blended financing instrument to aid farmers in accessing alternative energy solutions amid the electricity supply crisis.

While State-owned energy utility Eskom has been providing load curtailment agreements to stakeholders in the agriculture industry, government deemed it prudent to help minimise interrupted production from loadshedding further, particularly for large energy users.

In response, Agriculture, Land Reform and Rural Development Minister Thoko Didiza on August 29 launched the Agro Energy Fund (AEF).
She pointed out that the AEF had been allocated R500-million from DALRRD’s budget for the current financial year, while the Land Bank had set aside R750-million, taking the total fund to R1.2-billion.

The AEF will assist smallholder farmers and large commercial producers access alternative energy solutions for energy-intensive agricultural activities such as irrigation, intensive production systems and on-farm cold chain-related activities.
Priority will be given to on-farm producers excluding off-farm processors.

The Land Bank will provide loans for up to 70% relative to the grant portion of an alternative energy solution such as solar, biogas, anaerobic digesters and biomass for smallholder farmers, capped at R500 000, with medium-scale producers receiving up to 50% in terms of the grant-to-loan ratio, capped at R1-million.

Large-scale producers will receive up to 30% in loans relative to the grant portion, capped at R1.5-million.

Please support our members......

​Didiza acknowledged that the amounts may not be enough, but said it was a good starting point in mitigating the challenges that farmers and agribusinesses are facing and to help ensure food security.

The blended AEF facility is intended for use to buy capital equipment and infrastructure for alternative power generation.

Land Bank deputy chairperson Andrew Makenete noted that the Land Bank had been experiencing significant liquidity challenges since 2020, which had limited its ability to effectively function and serve farmers in the country. However, the bank has been on a journey of recovery, with a new and holistic approach to its functioning.

“For Land Bank to effectively serve the sector, it is key to have an effective funding regime. This will ensure the bank can sustainably manage itself. We have already created an enabling environment for the bank to participate in the agriculture sector,” said Makenete, adding that full stabilisation of the bank was still a work in progress.  

He is confident that the AEF will help mitigate any negative impacts on food security and that more than 500 primary producers can be supported.
Read more...........>>>>>>

JOHANNESBURG - National Treasury has urged small businesses and households to apply for a loan scheme to help make the move to solar power easier.

Treasury launched the scheme last week and it is set to last until August 2024.

As part of government’s plan to mitigate the country’s power crisis, Treasury said the loan covered solar rooftops, batteries, inverters, and other installation-related costs.

READ:  Renewable Energy Bounce Back Loan Guarantee Scheme

The country's power crisis was declared a national state of disaster in February, as the national grid was under severe pressure.

This compelled Eskom to implement stage six load shedding constantly.

To qualify for the loan, Treasury said small and medium enterprises (SMEs) needed to have a maximum income of R300 million.

Qualifying businesses can get up to R10 million as a loan to install solar panels.

Treasury said households were also encouraged to apply, as they could get up to R300,000 in a loan.

​Source........

National Treasury’s tax incentives for renewable energy projects in South Africa are paying off in a big with, with a new R300 million investment fund successfully closing on Monday (31 July).

The fund is being managed by Westbrooke Alternative Asset Management, which achieved the target by securing investment from numerous private funders in just eight weeks.

The group said it will now invest the capital into South African businesses that install, operate and own small and medium-scale embedded generation solar photovoltaic (PV) projects nationally.

This, it said, will boost private solar generation projects in the country while also giving the investors access to returns and tax breaks as per Treasury’s guidelines.

To incentivise investment in the sector, the Minister of Finance expanded the Section 12B tax incentive to enable investors to claim up to a 125% up-front tax deduction for all renewable energy projects brought into use for the first time between 1 March 2023 and 28 February 2025.

Advert.... Support our members!

The Westbrook fund allows investors to benefit from owning the underlying solar PV projects and claim the 12B tax benefits.

“After recouping their initial capital, investors will remain invested in a high-quality solar project that will deliver stable and predictable yields for up to 20 years. It’s attractive for investors seeking long-term returns with a capital preservation focus,” the group said.

In turn, the fund will invest in renewable energy projects:

South African small-scale and medium-scale embedded generation projects are either grid-tied or in a hybrid system (batteries/generators). This will range from project sizes of 100KW up to 25MW, with the ability to invest in larger projects
Existing and greenfield solar projects underpinned by power purchase agreements and/or operating leases with a focus on commercial, industrial, agricultural and body corporate off-takers.
The group said that it will be focusing on projects that will “move with speed” and assist in fast-tracking project execution, investing in “off-takers” with the certainty of electricity supply and cheaper electricity over the long-term.

Solar boom.........

Read more...........>>>>>>