Combined legislative and financial mechanisms for solar water heater mass rollout

Background

A solar water heater (SWH) project funded by REEEP and run by Sustainable Energy Africa (SEA) has already made progress towards establishing SWH businesses throughout South Africa.
However, one of the main barriers to these businesses upscaling is the lack of supportive legislation which would help minimise their risk. Following input from the previous REEEP project, the City of Cape Town SWH bylaw process is on track again. This legislation will require new buildings and alterations to install SWHs. The City of Ekurhuleni is also planning to develop similar legislation.

Purpose

To support South African provincial and local governments in moving SWH legislation forward, and to continue the development of a combined framework of legislation, sound business models and additional government support to promote the large-scale rollout of SWHs in South Africa.

Main Activities

  • Support the City of Cape Town in its implementation of the SWH bylaw, and support Ekurhuleni to move its own SWH bylaw process forward.
  • Conduct capacity building activities and support the spread of SWH legislation to other municipalities.
  • Continue to work with government to support the development of SWH implementation businesses, including  
  • Work with the Development Bank of  South Africa's Renewable Energy Market Transformation unit to create financing structures for the RE industry
  • Assist Ekurhuleni Metropolitan Municipality (EMM) in establishing mass rollout businesses
  • Disseminate the business case developed for SWH mass implement-ation through these structures and in workshops with business

Expected Impact

  • In Cape Town, installation of an additional 10,000 SWH units each year, thus saving 6.25MW and 20,000 tonnes of CO2 per year
  • Significant progress towards the establishment of SWH bylaw legislation around the country, using the City of Cape Town as a model for other cities
  • Risk reduction for business and the upscaling of the SWH industry in areas where legislation is passed.
  • Momentum for a national RE financing facility which will offer favourable loans to cities, businesses and private users.
  • Increased employment, energy security and sustained growth of SWH industry

Related News

Programme sector: 

RE & EE (Policy&Regulation)

Stage of project: 

Completed

Location: 

ZA/South Africa

Duration: 

2009 - 2010

Budget: 

€ 103,300 including co-funding from City of Cape Town (in kind), City of Ekurhuleni (in kind)

Implementing agency: 

Sustainable Energy Africa (SEA)

REEEP grant funded by:

United Kingdom

Norway