Powerway PV SA, part of Powerway Renewable Energy Co. Ltd has partnered with InnoVent Rental and Asset Management Solutions to launch a pioneering lease finance initiative for solar 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, the top quality assurance company 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, innovatively 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. This provides a one stop solution to Powerway PV SA customers, by mitigating major risks and providing them with the required comfort for both the solution and the savings achievable.
InnoVent is the largest black owned asset leasing company in South Africa, already operating in technology asset leasing in over 4 countries in Africa and the United Kingdom.
Powerway Renewable Energy Co. Ltd is one of the largest and best solar farm builders in the world providing for all aspects from integrated sales to design, installation, monitoring and efficiency services under one roof. Their pricing of products will be second to none due to Powerways’ local investment in three standalone companies: a Solar PV Module manufacturer, a Solar Inverter Manufacturer and an Engineering and Mounting brackets manufacturer. This formidable combination, together with InnoVent creates a ‘One Stop Solution’ for the market.
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 5 gigawatts of energy in 5 years and create a sustainable, pioneering 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 their business.
Commenting on the partnership, Benson Wu, CEO of Powerway Renewable Energy Co. Ltd said “With its irradiation resource second to none, South Africa is the best country to develop solar energy. With the net metering practice in place, added with our leasing model, I believe South Africa will be one of the biggest solar markets in the world. Powerway is proud to be part of it. ”
Zakhe Khuzwayo, Group CFO of InnoVent said “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”.
Charles Domingo, CEO of Powerway PV SA, said “With all the current work and marketing that we have done in South Africa and the rest of Africa over the past two years an extensive pipeline of new projects is in place which will be fast tracked with the current partnership with InnoVent. This will allow for the creation of new jobs and transfer of skills to South Africans in record time with the practical on the job training that can be effected. A huge win for South Africa and our youth”.
The transaction was structured and advised on by Tactus Advisory Services, a boutique corporate finance and advisory firm focused on emerging markets.