Energy Bounce Back Loan Guarantee Scheme

Energy Bounce Back Loan Guarantee Scheme

• 14 August 2023
• Accounting
• South African Accounting Academy

Announced in this year’s State of the Nation Address, the scheme was outlined in more detail during the 2023/24 Budget speech.

The EBB is a complementary intervention to the tax measures announced in the 2023 Budget Speech. Applicants may therefore apply for both tax and EBB measures. 

Its overarching purpose is to facilitate investments in rooftop solar energy by way of a government guarantee administered by the South African Reserve Bank. According to the statement, the scheme will operate at three levels:

• loans to small and medium enterprises and households for solar panels, batteries, inverters, and other installation-related costs (capped at R300 thousand per household)

• loans to energy service companies for upscaling and expanding leasing services to households and small businesses, and

• working capital loans for businesses in the rooftop solar supply chain (capped at between R10 m and R100 m per business, depending on its core service offering).

Participation in the scheme will be facilitated through commercial banks on an opt-in basis, although other mechanisms are being explored. According to the statement, the cost of a loan will be capped at the repo rate when commenced, plus a maximum of 6%.

Eligibility criteria include ‘basic tax compliance and adherence to other legal and regulatory requirements’.

Click here to download the Media Release:

https://www.treasury.gov.za/comm_media/press/2023/2023080801%20Media%20Statement%20-%20ENERGY%20BOUNCE%20BACK%20LOAN%20GUARANTEE%20SCHEME.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• This new scheme is aimed at alleviating the impact of continuing difficulties resulting from unreliable power supply for small businesses and households.

• The EBB is a complementary intervention to the tax measures announced in the 2023 Budget Speech. Applicants may therefore apply for both tax and EBB measures.

• As an auditor, independent reviewer. Accountant and tax practitioner, you need to be aware of the latest announcements by National Treasury, so that you can advise your clients accordingly.

• In your own capacity as a small business or a household, you might also want to make use of this new scheme.

Relevance to Your Clients:

• Small businesses and households will be able to invest in solar equipment if they participate in this scheme, so it is important that they are aware of the finer details and requirements involved.

0 COMMENTS

LEAVE A COMMENT