Massmart, one of the largest retail groups in South Africa, has recently launched a new solar funding scheme in collaboration with Retail Credit Solutions (RCS), providing South Africans with loans of up to R250,000 for the installation of solar panels. In light of South Africa’s recent load shedding crises and the growing demand for alternative energy sources, Massmart’s new solar energy funding solution aims to offer its customers a more affordable and flexible option for solar power.
The loans offered by Massmart are designed to meet the financial needs of households and businesses looking to install solar panels. The loan approval process is fast and easy, with funds released within 24 hours of approval. To provide more flexibility to its customers, Massmart offers various payment plans that can be extended up to 60 months, with fixed monthly repayments customized to the borrower’s monthly budget.
While the interest rate on the loan is not specified, service fees and an initiation fee may be charged. Monthly repayments are made via debit order. The loan options are available at Makro, Builders, and Game, providing accessibility to customers across the country.
In addition to flexible payment plans, Massmart’s solar funding scheme offers an array of features, including a paperless application process, electronic statements via email and SMS, and Customer Protection Insurance underwritten by Guardrisk Life Limited. The Customer Protection Insurance provides coverage for death, permanent disability, temporary disability, and loss of income.
To qualify for the loan, applicants must be 18 years or older, have a valid South African bank account, have a valid SA ID or driver’s license, earn a monthly income of R2,000 or more, and provide proof of income documentation.
According to a recent survey by BrandMapp, solar power is considered the most viable solution for individual households to escape Eskom and load shedding. However, the high cost of installation has prevented many households from adopting this alternative source of energy. While the majority of middle-class households would like to install solar panels, only a small percentage is willing or able to spend more than R30,000 on any solutions.
According to data from solar associations in South Africa, solar installations start at around R90,000 and can reach over R300,000 in some cases.
To incentivize the use of solar power among households and businesses, the South African government, through National Treasury, offers tax rebates for those who can afford to buy solar panels. Individuals can receive a 25% rebate on the cost of a solar panel until March 2024, capped at R15,000. However, this tax benefit is not available for purchases over R60,000 and does not cover installation or other necessary equipment such as batteries. For businesses and investors, there is a 125% rebate available for investments in major solar projects or funds.
In conclusion, Massmart’s new solar funding scheme provides an affordable and flexible option for South Africans looking to install solar panels, allowing them to access renewable energy and reduce their reliance on the national grid. With the rising demand for alternative energy sources, Massmart’s funding solution is a step towards a more sustainable future for South Africa.