News Residential

Nedbank avails its solar energy funding to all South Africans, not just its home loan clients

Nedbank and Hohm Energy have partnered on an innovative funding solution that makes 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 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 it will probably get worse before it gets better. Add to this the steep increases in electricity prices and South Africa’s energy future does not look particularly bright.

The good news, 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. The source: 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’, says Thomas.

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 re=advance or further loan on their Nedbank mortgage bond, ensuring 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 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 re-advance or further loan, 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”.  

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”, concludes Thomas.