Frequently Asked Questions

FAQ 1: What kind of projects can be financed under GEEF?

Answer: Financially viable energy efficiency projects that provide significant energy and/or emissions savings and which offset grid-connected electricity through self-use renewable energy.

The funding can be used for equipment and technologies that:

• Benefit from variable controls thus producing the same output using less energy.
• Produce a higher quantity of products with less defects/wastage that ultimately results in lower energy use per unit of useful products produced.
• Use less energy to provide the same amount of useful work such as high efficiency
• modernized boilers, compressors or insulation materials.
• Make use of renewable sources rather than fossil fuels.
• Have a combination of all of the above.
• Optimize energy use by controlling time, presence, flow, etc.

Projects which are eligible under the Eskom IDM programme are also, in principle, eligible for financing. The Green Energy Efficiency Fund provides an option for bridging finance to address the funding gap between the actual investment and the process required to obtain Eskom incentives/rebates.

FAQ 2: What loan conditions are provided under GEEF?

Answer:

• Loans from a minimum of R1.0m to a maximum of R50.0m are available at prime -2%. For higher amounts standard conditions apply.
• Loans available in ZAR.
• Term is up to 15 years, depending on the payback period of the technology used.
• Standard IDC fees apply.
• All standard credit policies and procedures will apply.

FAQ 3: How profitable are energy efficiency projects?

Answer: Returns on investment on energy efficiency projects largely depend on the type of project, technology applied and on other framework conditions such as fuel and energy prices, taxes and tariffs etc.

Investment cost including interest expenses are fully covered by electricity cost savings from the grid supply.

Typical payback times are 3-5 years. As soon as paid back times are achieved the energy efficiency measures strengthen the profitability of a company for a longer term by keeping energy related costs at a lower level.

FAQ 4: What are the benefits of energy efficiency investments for the company?

Answer: Investing in energy efficiency is a strategic approach to ensure business
competitiveness. Benefits include but are not limited to:

• Technical support available for energy assessments based on the size and complexity of proposed projects.
• Reduction of investment risk through energy efficiency validation checks.
• Modernization of industrial equipment and the use of energy efficient technologies will result in reduced energy and other costs.
• Improved product quality and production capacity while increasing company profitability.
• Lower vulnerability to increasing energy prices.
• Improved company image due to contributions to carbon footprint reduction and South Africa’s sustainable development goals.
• Increased company value.

To learn more about how this fund has helped our existing clients, log onto our site and view our Funded Cases page.

FAQ 5: How do I know if I am eligible to apply for this funding?

Answer: The GEEF is only available to private sector companies registered and operating in South Africa who plan to:

• Implement a financially viable Energy Efficiency Project that provides significant energy and/or emissions savings.
• Offset grid-connected electricity through self use Renewable Energy
• Priority will be given to companies that have less than or equal to:
  • R51.0 million turnover or
  • R55.0 million assets or
  • 200 employees

FAQ 6: What does the Technical Support comprise?

Answer: The IDC has access to international and local technical experts who will support those eligible enterprises who require advice and assessments to support their energy efficient project:

• Perform energy assessments and audits to propose sustainable energy solutions and support the preparation of investment project proposals.
• Calculate the economic and financial benefits of the proposed investment.
• Support the selection of eligible equipment and enhanced performance technologies.

FAQ 7: What exactly is an energy assessment?

Answer: This is an assessment of the potential energy and financial savings which can be achieved by implementing certain technical measures.

It aims to identify the best and most profitable investments that your company can undertake to increase energy efficiency. The energy assessment will help your company to clearly identify appropriate energy efficiency measures. This will be performed for those successful applicants who have an obvious need for support from GEEF in this area.

FAQ 8: What makes GEEF more attractive?

Answer: It is the combination of longer term credit financing at preferential rates with professional technical support which makes GEEF more attractive.

This technical expertise will help to identify the most appropriate energy efficiency solutions which will significantly reduce your energy consumption and costs and increase your competitiveness. The loans under GEEF can be provided for up to 15 years.

FAQ 9: How can I apply for this fund?

Answer: Complete and submit the Green Energy Efficiency Fund application form available on our website and in the IDC regional offices. This must be accompanied by an executive summary providing project background information and the reason for the funding.

We will then conduct a basic assessment and determine the eligibility of the project within five working days.

If your project is eligible, you will be required to submit a detailed business plan to us accompanied by a financial mode and cash flow statements. These will serve as input to the due diligence and credit approval process.

FAQ 10: What industry sectors are covered by GEEF?

Answer: In line with the Government’s New Growth Path (NGP) and Industrial Policy Action Plan (IPAP2), eligible projects across all sectors that fall within the IDC’s funding mandate will be considered for funding.

Primary sectors include:

• Green Industry
• Agricultural value chain
• Manufacturing activities
• Mining value chain
• Tourism and high-level services
• Knowledge economy.

FAQ 11: What is the relevance of the German Development Bank and Government Logos?

Answer: The German Development Bank (KfW) have partnered with the IDC to establish the Green Energy Efficiency Fund in support of energy efficiency and renewable energy investments. The German Development Bank (KfW) provides the grants that make possible to provide free Energy Assessments. All applications must be submitted to the IDC who will then evaluate the application based on the IDC’s credit policies.