Powerway PV SA has partnered with InnoVent Rental and Asset Management Solutions to launch a pioneering lease finance initiative for solar photovoltaic (PV) rooftop power solutions, for, commercial, industrial, government and residential use in South Africa and later, the rest of Africa. Best of breed global players, TÜV Rheinland and Marsh, well known insurance expertise will offer their expert technical services to the partnership.
With the European and American solar rooftop power generation market very advanced in its maturity, the InnoVent Powerway PV SA model takes all the positives from what has been done and plugs the gaps to create the most viable solution for the African market adapted for local conditions.
The leasing model is structured such that consumers of electricity will access solar power for less than the rate at which they currently pay for normal power. No capital outlay will be required from consumers. TÜV Rheinland and Marsh will provide the quality, system performance review, measurement and insurance products respectively.
InnoVent is the largest black owned asset leasing company in South Africa, already operating in technology asset leasing in over four countries in Africa and the United Kingdom.
Powerway Renewable Energy is one of the largest solar farm builders in the world providing for all aspects from integrated sales to design, installation, monitoring and efficiency services under one roof. They claim their pricing of products will be strong due to Powerway’s South African investment in three standalone companies; a solar PV module manufacturer, a solar inverter manufacturer and an engineering and mounting brackets manufacturer.
In support of South Africa’s localization strategy, Powerway PV SA is setting up manufacturing plants in Coega, Port Elizabeth which will be operational by June 2014. Powerway PV SA has joined hands with some of the largest global players in solar PV manufacturing i.e. JA Solar, listed on NASDAQ and Sungrow, listed on Shenzhen Stock Exchange to create the first and only end to end solar manufacturing plant in Africa. The global expertise from China includes plans to transfer skills, create 2,500 jobs, save more than five gigawatts of power in five years and create a sustainable long standing relationship between China, South Africa and the rest of Africa. Further, in support of the strategy to transfer skills and grow the renewable energy market in South Africa, Powerway PV SA will consider the introduction of a local strategic investor to its business.
Commenting on the partnership, Benson Wu, CEO of Powerway Renewable Energy Co. Ltd says, “With a net metering practice in place, added with our leasing model, I believe South Africa can be one of the biggest solar markets in the world.”
Zakhe Khuzwayo, group CFO of InnoVent says. “As far as access to affordable renewable energy is concerned, this partnership is a game changer. This space has just experienced a tectonic shift and will never be the same again in Africa.”
The transaction was structured and advised on by Tactus Advisory Services, a boutique corporate finance and advisory firm focused on emerging markets.