How to access funding for an alternative power solution for your business

A leading investor in clean energy projects, Standard Bank Group, has announced the launch of a newly commissioned 1-Megawatt Dual Axis Solar PV plant at the Nelson Mandela University (NMU) in Port Elizabeth.

The solar plant is a result of a collaboration between Standard Bank and the PPA Company, which is a wholly owned subsidiary of Tagex AG and an approved supplier of solar PV instillations for the bank.

Standard Bank was able to provide a financing solution to fund instillation of the system via the Solar Asset PV solution in the Commercial Asset Finance division while the PPA Company is involved in engineering, procurement and construction of the plant.

To ensure sustainability of the project, Standard Bank provided the funding in accordance with a long-term Power Purchase Agreements, which was concluded with the university and allows the educational institution access to clean power, generated at beneficial tariffs.

ALTERNATIVE POWER SOURCES

The system is a 1-Megawatt dual axis system, and this allows the solar panels to track the movement of the sun, thus maximising the system’s production capability.

With the rising cost of electricity, constrained supply and the reduction in cost of solar technology and equipment as well as increased storage capabilities, businesses and individuals are increasingly considering alternative power sources.

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 the country to diversify its energy mix.

Standard Bank recognises this need and understands that businesses and the economy at large cannot achieve sustainable growth with unreliable electricity supply.

ALTERNATIVE SOLAR ASSET FINANCING SOLUTIONS

The bank has various alternative solar asset financing solutions for commercial and industrial businesses. These solutions provide for companies who want to directly buy a solar PV system to generate electricity either for own-use, or for the selling of power to an end user through a PPA.

‘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 the country to diversify its energy mix’

These funding solutions offer the following benefits:

• Reduction in electricity cost

• Reduction of the carbon footprint of the business

• Accelerated depreciation initiatives through the Section 12(B) of the Income Tax Act (58 of 1996)

• Possible funding term of up to 10 years improving 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.

Standard Bank Group www.standardbank.co.za