Global carbon emissions will fall this year because of major disruptions to travel, trade and economic activity brought about by the Covid-19 pandemic, which has caused a decline demand of electricity by industrial and commercial businesses as people work from home. In South Africa the consumption dropped by 15%. However, this is no reason to celebrate because the country has just moved from Level 3 to Level 2, which will mean an increase in consumption.
Electricity usage is once again in the spotlight and we are forced to look at the importance of solar power. Energy security has also become a major strategic business imperative in Africa. South Africa has among the highest solar irradiation levels in the world, which means the country has the perfect conditions to embrace clean solar energy.
Real estate owners and investors are turning to alternative methods, specifically solar PV installations, the price of which is rapidly dropping. By implementing a solar solution, commercial real estate owners can reduce the rising costs of electricity and secure your future electricity supply.
Standard Bank has the knowledge and expertise to design financing solutions in this area. It supports clients in the industrial, commercial, and agricultural markets looking to reduce their electricity costs and achieve energy security.
Solar power is cleaner and more affordable than traditional power generating systems and as the country battles to meet electricity demand, it is critical for it to diversify its energy mix. Standard Bank recognises this need and understands that businesses and the economy at large cannot achieve sustainable growth with an unreliable electricity supply.
As a leading investor in clean energy projects, Standard Bank in 2019 announced the launch of a newly commissioned 1-Megawatt Dual Axis Solar PV plant at Nelson Mandela University (NMU) in Port Elizabeth.
Standard Bank has various alternative solar asset financing solutions for commercial and industrial businesses. These solutions provide for companies that want to buy a solar PV system to generate electricity either for its own use or to sell to an end user through a Power Purchase Agreement.
These funding solutions offer the following benefits:
· Reduction in electricity cost.
· Reduction of the carbon footprint of the business.
· Accelerated depreciation allowances in terms of section 12(B) of the Income Tax Act 58 of 1996.
· Possible funding term of up to 10 years, which would improve cash savings.
Access to electricity remains one of the greatest challenges in Africa. Rapid population and economic growth will only increase demand. This presents opportunities for the private sector to develop commercially viable solutions to close the energy gap.
For further enquiries, please contact
Mark Currin on 083 4144 552