Financing your Renewable Energy System – Solar Revolving Fund (SRF)

There are a number of ways to finance your Renewable Energy System which means you do not have to pay cash upfront. In this article, we introduce the Ministry of Industries, Mines and Energy’s (MIME) Solar Revolving Fund (SRF). The SRF is a credit facility established by MIME to stimulate demand for the utilization of renewable energy technologies in the rural areas, especially for communities living in off-grid areas, but also to urban clients.

The fund can be used to finance the following:

1. Solar Home Systems (SHS) Maximum loan amount: N$60,000, 
2. Solar Water Heaters (SWH) Maximum loan amount: N$35,000,
3. Solar Water Pump (PVP) Maximum loan amount: N$60,000,
4. Solar Solutions for Small & Medium Enterprises (SS-SME): N$95,000,

The fund can finance:

• Namibian Citizen, age 21-55 and pensioners up to the age of 75 years old.
• Any person with an active bank account into which his/her monthly or regular income is paid and with a clean credit record. Credit references will be verified with Trans Union®.
• The applicant must prove 2 years of un-interrupted employment term or be in business operation for 2 years. 

Some of the Loan Criteria’s

• Loan amount must not exceed three (3) times the applicants’ basic income. 
• The loan interest rates are in a range of 0-5% charged over the loan period of 60 months.
• Deposit is payable in the range of 5% – 30% of quotation amount.
• Applicants over the age of 55 years, pensioners, farmers and businesses with proven regular income pays 30% deposit of total quotation amount.
• Upon approval of the loan application form, an administration fee of N$350.00 (non-refundable) is payable together with the deposit

The Application Process

Forms can be obtained from the Ministry of Mines and Energy, Energy Service Provider and at all Regional Offices, and can be downloaded from the MME website.

Applications can be submitted to MME by attaching the following documents:

• Recent certified copy of your ID (All)
• Latest stamped pay slip or proof of income (Individuals)
• 6 months bank statement (Individuals)
• Founding Statements (Business)
• 1 year bank statement (Business)
• Financial Statements (Business)
• A detailed quotation from accredited Energy Service Provider (All)
• Proof of land ownership (land certificate, title deed or lease agreement)

Once the deposit is confirmed with the bank, SRF will issue a purchase order within 14 days to your Energy Service Provider to arrange for the system delivery and installation at the address indicated on the application form. The Purchase Order is valid for two months, thereafter it will be cancelled together with the application.

Some General Information

Arrears and/or defaults in installments for three consecutive months may result in legal proceedings or backlisting on Trans Union® (ITC).