Standard Bank sees rapid growth in solar finance offering

18th January 2024 By: Marleny Arnoldi - Deputy Editor Online

Financial services provider Standard Bank foresees continued massive demand for solar and energy-related products this year, after seeing a 400% growth in demand for LookSee’s solar installation offering last year.

LookSee is the bank’s purpose-built solar loan, which it launched in 2023 as part of the government’s Energy Bounce-Back Loan Scheme.

For households, loan amounts range from R3 000 to R300 000 and, for small businesses, loans of between R10 000 and R10-million are available.

Standard Bank explains that solar systems and the cost of installation can be financed with a 60-month payback period at interest rates between prime +1% and prime +2.5%.

“From a financing perspective, Standard Bank has seen a big increase in green solution funding. The bank has led a concerted effort to disburse funds to individuals in South Africa for installing solar solutions or purchasing “green-aligned” homes.

The total green lending book grew by 26% last year to R2.9-billion.

LookSee head Marc du Plessis explains that Standard Bank is participating in the Energy Bounce-Back Loan Scheme alongside the National Treasury and the South African Reserve Bank, offering financing to qualifying businesses who meet eligibility criteria in efforts to manage current power interruptions.

The loan scheme aims to incentivise the generation of an additional 1 GW of power through renewable energy sources.