Projects & Programmes
Combined legislative and financial mechanisms for solar water heater mass rollout

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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) 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 was put on track again, involving creating legislation which would require new buildings and alterations to install SWHs. A the time of the project, the City of Ekurhuleni was 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 implementation through these structures and in workshops with businesses

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 the SWH industry

Location

South Africa

Programme Sector

Renewable Energy / Policy and Regulation

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

REEEP grant funded by

Norway