ENERGY BOUNCE BACK LOAN GUARANTEE SCHEME LAUNCHED

ENERGY BOUNCE BACK LOAN GUARANTEE SCHEME LAUNCHED

• 08 August 2023
• Minerals & Energy
• SA Legal Academy

National Treasury has issued a media statement confirming the availability of an ‘energy bounce back loan guarantee scheme’ until 30 August 2024.

Announced in this year’s State of the Nation Address, the scheme was outlined in more detail during the 2023/24 Budget speech.

Its overarching purpose is to facilitate investments in rooftop solar energy by way of a government guarantee administered by the South African Reserve Bank. According to the statement, the scheme will operate at three levels:

• loans to small and medium enterprises and households for solar panels, batteries, inverters, and other installation-related costs (capped at R300 thousand per household)
• loans to energy service companies for upscaling and expanding leasing services to households and small businesses, and
• working capital loans for businesses in the rooftop solar supply chain (capped at between R10 m and R100 m per business, depending on its core service offering).

Participation in the scheme will be facilitated through commercial banks on an opt-in basis, although other mechanisms are being explored. According to the statement, the cost of a loan will be capped at the repo rate when commenced, plus a maximum of 6%.

Eligibility criteria include ‘basic tax compliance and adherence to other legal and regulatory requirements’.

• media statement
• additional information

Published by SA Legal Academy Policy Watch

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