Barclays Africa group company Absa, in partnership with the French Development Agency (FDA), was offering commercial businesses in South Africa an up to 7% rebate on loans of up to R100-million that are used to fund energy efficiency or renewable energy projects.

Biogas, solar power, wind power and solar water heater projects could qualify for the incentive, while energy efficiency projects such as the retrofitting or modification of a given company’s manufacturing processes, on-site heat and electricity generation, efficient lighting or the rehabilitation of power distribution systems could also qualify.

“Absa’s [partnership] with the FDA is intended to help South African businesses grow their bottom line and drive greater efficiency across their operations. The types of projects that would qualify for funding are all aimed at reducing companies’ electricity costs and carbon footprints,” Absa business banking head of lending products Vonani Mabunda explained.

Absa noted that one business, which had benefited from the rebate, was a fruit farm in the Western Cape that installed a 1 MWh rooftop solar photovoltaic system to provide some of the power required for its refrigerator compressor rooms, which made up 89% of the farm’s electricity consumption.

Absa had given this particular client a rebate of more than R1-million.

“Absa is encouraging companies to partner with the bank to find innovative ways to do business. We have a strong appetite for this industry and for helping businesses grow their capacity. We hope to encourage the development of green energy projects both in South Africa and eventually across the continent,” Mabunda said.

Further, Absa also pointed out that it was able to assist clients in securing free energy audits through an entity called Private Sector Energy Efficiency.

Businesses with a monthly electricity spend of between R62 500 and R750 000 qualified for a free energy audit, while those with a yearly electricity spend of R45-million or more qualified for a 60% subsidy of their total energy audit costs.