A partnership between Nedbank and Hohm Energy is making it easy and affordable for anyone to install solar power in their home.
The recent spate of intensive load-shedding has made life and work unpredictable and very difficult for most South Africans. Unfortunately, the consensus view is that load-shedding is likely to continue for at least the next five years and will probably get worse before it gets better. Add to that the steep increases in electricity prices that we can expect to see, and the energy future for South Africans doesn’t look particularly bright.
The good news though, according to Ciko Thomas, Group Managing Executive in Nedbank Retail and Business Banking, is that there is light at the end of this very dark tunnel. And the source is the sun, and Nedbank’s innovative funding solution. ‘Solar energy systems have declined massively in price over the past few years, with some solar photovoltaic (PV) components reducing in price by up to 90% over the past 15 years, it means that “going off the grid”, or at least reducing dependency on Eskom power, is now within reach for many homeowners’, Thomas says.
Over the past few years, Nedbank has made solar installations easily accessible to its home loan clients by allowing them to fund the equipment via a readvance or further loan on their Nedbank mortgage bond. This ensures that these homeowners benefit from the low interest rates that a home loan typically provides.
Now, based on the popularity and success of that solution, Nedbank is making solar energy funding available to all South Africans, even those who are not Nedbank clients. ‘Our new asset-backed solar finance solution, provided through MFC, is available to anyone wanting to install a solar energy solution on their property, no matter who their mortgage bond is with, or even if their property isn’t bonded at all,’ Thomas explains.
Thomas says the innovative solar funding solution has been designed to remove the complexity that people often face when financing a solar solution via their home loan. ‘Nedbank’s solar finance offering doesn’t require applicants to undergo a property valuation, which is typically needed when applying for a readvance or further loan,’ he says, ‘but it still offers a preferential interest rate. In fact, this solution makes funding a solar installation as easy as buying a car.’
‘In addition, we have elected to team up with trusted energy partners Hohm Energy, who will help our clients with expert guidance through the entire process of assessing their energy requirements, finding a solution that fits their needs, overseeing the installation and providing after installation support,’ he continues.
‘Nedbank is acutely aware of the impact that energy insecurity is having on the lives and financial well-being of its clients and all South Africans,, which is why we have made the decision to extend our tried and tested solar funding solution to everyone in the country, simplifying the process for clients while bringing them top-quality, reliable solar finance solutions that are within their budget, resulting in saving them money in the long term and giving them the peace of mind that they will have access to electricity whenever they need it,’ Thomas says.