Housing in Southern Africa April 2016

S olar panels andheat pumps can reduce anoverall electricity bill by 40%. These energy saving systems usually pay for themselves within two to five years, after which residents will continue to enjoy the reduction in their electricity bills each month. Le Roux says that this type of installation is usually considered a special project. Despite the obvious benefits, body corporates often postpone special projects due to a lack of funds and a re- luctance to raise a special levy to cover the costs. Owners could also be reluctant because it is a large outlay if the job is done without financial assistance. However, if they have an option of paying it off, it may seemmore feasible. In addition, if a contrac- tor is approached with a bulk order, the price will be discounted. “Propell offers project finance for large projects like this and, because many home owners need to save energy and money. Propell will enable the scheme to fund the installation in full and in many cases, the monthly saving on the municipal account, could cover the repayment instalment eachmonth,” says le Roux. Once the loan is repaid, the saving will help the body corpo- rate’s cash flow and reduce the need for future increases in levies or the need to raise special levies for other projects (i.e. they will be able to ‘bank’ the surplus and build up a reserve fund). Propell offers project finance to assist managing agents and trustees get the job done withminimum fuss and without having any of the trustees sign surety for the loan. Le Roux adds, “The facility can remain in place indefinitely and will only incur costs when used.” ■ Energy savings in sectional titles Installing equipment such as solar panels or heat pumps to heat water, LED lighting or lights with movement detectors for common areas, and other energy saving devices, will contribute to raising the value of units in the scheme,” says Willem le Roux, Director of Propell.