• Absa is providing up to R50 million in subsidies for SMEs looking to install solar backup power solutions.
• SMEs with commercial properties financed by Absa will be in line for subsidies up to R50 000 or 10 percent of the cost of installation for solar power.
• The subsidy amount will be determined based on a set of factors which Absa hasn’t disclosed.

As South Africans try to guard against loadshedding by installing alternative power solutions, Absa has good news for small medium enterprises (SMEs) that are looking to build some resilience against power cuts.

The financial institution has announced that it will be providing as much as R50 million in energy subsidies to SMEs under its Green Asset Finance programme. Under this programme, SMEs will granted access to up to R50 000 or 10 percent of the overall installation value toward financing for solar power solutions.

Sadly, this offer isn’t open to all and Absa has said it will contact qualifying customers who have their commercial properties financed by Absa. Once a qualifying SME customer has been identified and contacted, they can choose to opt-in or opt-out of the subsidy for their green energy finance needs.

“SMEs make a significant contribution to job creation and economic growth in South Africa. However, in many instances, the operating environment over the past few years has made it very difficult for these vital enablers to grow and thrive,” managing executive for SME Business at Absa Relationship Banking, Ronnie Mbatsane said in a press release.

“Load shedding in particular continues to hamper the potential of many SMEs. Through these subsidies we are helping to put liquidity back into the hands of small businesses to power their business into full production,” the exec added.

Absa and its various divisions have been on a push to both invest and help finance renewable energy solutions. By the end of 2022, Absa Relationship Banking had financed over R1 billion in embedded renewable power generation capacity for SMEs.

The bank also helped Teraco’s move toward renewable energy by arranging a R1.5 billion green loan.

““In the past year, we’ve made significant progress in the area of sustainability, which is an integral part of our commitment to being an active force for good in everything we do. This commitment has also seen us accelerating the embedment of environment, social and governance across our business,” Absa Group chief executive officer, Arrie Rautenbach said in March.

As mentioned, qualifying SMEs won’t have to do anything as Absa will be in contact with qualifying businesses. The subsidy amount, while it can reach R50 000, will be determined on a predetermined set of factors which Absa didn’t elaborate on.