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Households will recoup cost of renewables within years, banker avers

10th July 2015

By: Anine Kilian

Contributing Editor Online

  

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Affordability is one of the major challenges regarding the implementation of renewable energy in South Africa, says Absa head of consumer banking Pierre Loubser.

He notes that the initial capital investment required to install renewable-energy solutions might be more than some households are willing to spend, even if the investment immediately improves their quality of life by saving money and providing energy security.

“Buying a backup power system is a big investment; however, it is estimated that the entire investment can be recouped from three years and more,” he says.

In this regard, Absa Home Loans, Card and Consumer Lending businesses have partnered with renewable-energy solutions provider Eco Navitas, which has agreed to offer Absa customers an upfront 10% discount on renewable-energy solutions for their homes and businesses.
He notes that South Africa has one of the best solar regimes in the world, as it has an abundance of sunshine.

“If we can enable even 1% of households to take themselves off the grid this winter, it will make a marked difference,” Loubser states.

He points out that installing energy efficient and environment-friendly power backup, photovoltaic power generating systems in homes or solar thermal geysers has become a necessity amid continued energy constraints and the sharply rising cost of electricity that South African households have to deal with.

“Absa has become increasingly aware of the public and private sectors having a joint responsibility to help relieve some of the pressure on our national grid this winter.”

Although these systems might initially appear to be a costly investment, Loubser reassures that, in the long term, households will save significantly in reduced electricity costs and they might benefit from the reduced inconvenience of power cuts.

Further, Absa aims to continuously offer clients access to a host of value-adding benefits through the Absa Features Store, an interactive platform that enables clients to turn their account into a bespoke packaged account.

When using this platform, Absa transactional account holders have the opportunity to add a variety of additional lifestyle products, services, features and benefits to their new or existing account.

The Absa Features Store offerings range from the latest cellular technology and exclusive travel offers to Absa Rewards membership and special limited-time promotions, as well as a selection of prepackaged health, security, legal and lifestyle services, and now also renewable-energy solutions.

“It represents the bank’s direct response to the needs of its existing and prospective clients who use their digital channel of choice, whether mobile or online, to do their banking. Clients have also expressed a desire for feature-rich banking experiences that add convenience, choice and value to their daily lives,” he states.


When comparing home power systems, Loubser says, it is important to ensure that people “are comparing apples with apples” and that, ultimately, they select a solution that is suitable for their specific needs in terms of backup power or power generation.

Research conducted in California, in the US, earlier this year, showed that such homes will most probably sell at a premium in future, which will benefit the seller, while the buyer will be acquiring property that will not only save him or her money in terms of running costs but also protect him or her from the inconvenience of unplanned power cuts.

Loubser notes that there are cheaper systems, with somewhat similar specifications and performance on paper, than the systems approved by Absa; however, Absa-approved systems have comprehensive warranties in place with design lives that sometimes span decades. Inferior products degrade much sooner, have limited or no warranties and have to be serviced and replaced regularly, he adds.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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