Concessionary funding for energy services companies (ESCOS)

Loadshedding has become a significant risk factor that threatens the survival of many SMEs. The IDC intends to reduce this impact, by providing concessionary funding to Energy Services Companies (ESCOs) to enable them to supply financed energy solutions to SMEs across all sectors of the economy.

OBJECTIVES • To reduce barriers to accessing energy solutions for SMEs by providing concessionary funding to ESCOs • For ESCOs to pass the benefits of the concessionary funding to the SMEs across all sectors of the economy through reduced tariffs/lease payments • To support SMEs that prefer to have a financed energy solution rather than owning the asset

WHAT WE FUND Small-scale energy solutions that include: Rooftop solar PV, preferably with batteries to enable energy storage for consumption during loadshedding. Focus areas for medium to long-term (indicatively up to 10 years) Contracts: • Power Purchase Agreements (PPAs) • Power Lease Agreements (PLAs) • Instalment Sales Agreements (ISA)

WHO SHOULD APPLY FOR FUNDING Applications can be made by ESCOs that have a proven track record in: (1) Installing energy solutions (solar PV), with battery backup, preferably to SMEs in the Commercial and Industrial (C&I) sector and/or (2) Providing financed energy solutions through contracts, preferably incorporating Operations & Maintenance (O&M) services. ESCOs that have established relationships, business development and credit management systems with Commercial Banks and other financial services providers may make joint applications.

FUNDING CRITERIA Applications should meet the following overarching criteria at a minimum: a. The ESCO must be a South African-owned and registered company. b. The ESCO should have a proven sustainable business model with a minimum of 2 years in operation. The sustainable model is demonstrable through; (1) The financial performance of executed projects; and (2) The technical performance of these projects. c. The ESCO should have a track record of successfully executing solar PV projects, preferably to SMEs in the C&I sector, having deployed at least 3 such projects. d. Proven track record of providing financed energy solutions through contracts. e. A demonstrable pipeline of solar PV projects, preferably for SMEs in the C&I sector.

APPLICATION PROCESS Applicants must complete the online application form: www.idc.co.za/esco-energy-solutions Applicants should ensure that all documents required/requested in the application form are also submitted online.

How to submit applications for funding:
• Go to www.idc.co.za/esco-energy-solutions
• Complete the online application form
• Complete an IDC NDA Return Document / Annexure C
• Email the completed application to This email address is being protected from spambots. You need JavaScript enabled to view it.
• All documents submitted must be in English
• Only applications received through the prescribed processes will be accepted
• Incomplete submissions will not be accepted
The IDC will review applications as and when they are received. Applicants are encouraged to submit their applications
as soon as they are ready to do so.