South Africa launches loan guarantee scheme to back C&I solar

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The South African National Treasury has launched the Energy Bounce Back (EBB) Loan Guarantee Scheme. The initiative aims to support the deployment of commercial and industrial PV systems.

Businesses will be granted solar-related loans, backed by a 20% first-loss guarantee from the South African Reserve Bank.

“The EBB aims to generate 1,000 MW in additional generation capacity as well as facilitate resilience to loadshedding for micro and informal businesses,” said the authorities.

The measures for enhancing resilience include power storage assets like batteries and inverters, even without direct generation capacity.

The program will operate through three distinct mechanisms: loan guarantees for small- and medium-sized companies, loan guarantees for energy service companies (ESCOs), and working capital loans for businesses in the rooftop solar supply chain.

Participating companies must have a maximum turnover of ZAR 300 million ($15.9 million), with a maximum borrowing limit of ZAR 10 million. The program is set to expire on Aug. 30, 2024.

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