V&A Waterfront’s holistic energy efficiency interventions have helped them achieve a reduction in total consumption of 26% from 2008 till 2015.
Their PV installation has resulted in average monthly savings of 11% and up to 17% in summer months.
Peninsula All-Suite Hotel
Ongoing initiatives are resulting in annual savings of up to 19% despite higher occupancy
Energy efficiency is embedded within the KPAs of every business unit, with energy champions from stores, distribution centres and Head Office.
Savings and Finance
There are several options to assist you financially. Your ESCo will advise you on the finance option best suited to your project:
SARS 12L and 12B tax incentive for larger users
National Cleaner Production Centre's EE Support Programme
ESCo Finance options
Turnkey contract: The client agrees to pay the ESCo to implement an energy efficiency project regardless of whether the project realises the energy savings promised by the ESCo. The ESCo designs and implements the project and no further recourse is provided other than guarantees on the equipment.
Shared savings contract: The ESCo pays for the retrofit upfront and the client repays them from a portion of their savings over time. The savings are split in accordance with a pre-arranged percentage, example 60% for the ESCo and 40% remains with the client. There is no standard split as this depends on the cost of the project, the length of the contract and the risks taken by the ESCo and the client. Monthly repayments can be arranged in such a way that your overall electricity bill and ESCo repayment come to less than your electricity bill prior to implementation. Once the initial financing is paid off, the client reaps the benefit of 100% of the savings for every month thereafter.
Guaranteed savings contract: The ESCo guarantees that savings will cover all project costs over a specified period. This shields the client from any performance risk.
Financed contract: The funding is provided by the ESCo, which the client will repay over a fixed period.
SARS 12L and 12B tax incentive (www.sanedi.org.za)
Tax incentives are being introduced for businesses that can show measurable energy savings. The 12L regulation sets out the process for determining the quantum of energy efficiency savings, and the requirements for claiming the proposed tax deduction. Section 12L incentives include all energy efficiency projects that reduce energy use and is claimable until 2020. It is important to note that the tax incentive is available for savings in all energy forms and not only electricity. The expected tax relief would be a 95 cents deduction on taxable income per kilowatt hour of energy saved – subject to all the conditions in the 12L regulations being met.
Section 12B provides for a capital allowance for movable assets used in the production of renewable energy. It allows for a cash flow advantage of 50%: 30%: 20% 3-year depreciation for projects > 1MW, and 100% depreciation in the first year for those under I MW.