UN Division for Sustainable Development

Case Study Detail Record

Organization type:	Government

Name of Ministry/Agency:

Country:	United States of America

Initiative Title:	Solar Water Heating for Municipal Infrastructure Delivery in South Africa

Internet links:	http://www.solarengineering.co.za/Update%20-%20Dec%2012,03/swh.htm http://www.winrock.org/fact/facts.cfm?CC=5548

Scope:	National: - South Africa

Status:	Completed

Timeframe:	Start: End:

Lead Institution:	Winrock International

Stakeholders/Partners:	Solar Engineering Services eThekwini Housing Authority (Durban Muni. Govt)

Relevent issues:	- Renewable energy including hydro power

Objectives/Challenges:

1) To increase access to energy for the poor; 2) To promote renewable energy and energy efficiency; 3) To educate consumers and raise awareness of links between energy and environment; 4) To encourage innovative financing solutions; 5) To promote technology innovations and transfer; and 6) To reduce indoor air pollution

Lessons Learned:

There is a large market for low-cost solar water heaters in poor communities, but there is a pressing need to identify financing organizations to help households obtain credit so that the energy savings from solar water heaters will pay for themselves.

Policy Options:

Identifying reliable, long-term financing mechanisms as well as establishing installation and maintenance infrastructure for low-cost solar water heaters, which can save poor households one third of residential energy costs.

Summary:

Even though the majority of South Africa's population uses electricity to heat water, the widespread adoption of solar water heaters is unlikely without a sustained effort to overcome financing, awareness, and service infrastructure barriers. USAID has helped build support within the eThekwini (Durban) Municipality for solar water heaters by installing more than 200 units. Consumer acceptance of these appliances has been positive, but many potential users are discouraged by the first-cost barrier. This project seeks to improve government and micro-finance institution ability to lend for solar water heating systems. Key features of programme: Collaboration with municipal government to install solar water heaters in low-cost housing; public awareness and acceptance of solar water heaters? reliability; lending by microfinance institutions to cover initial costs. Results achieved and known impacts include: Installation of over 200 solar water heaters; providing technical assistance to manufacturers to help them develop products that addressed low-income household needs; identifying financing organizations that will lend to poor households for solar water heating. Main obstacles faced: Overcoming the gap between the attractive life-cycle costs of solar water heaters and the relatively high up-front costs that low-income households face to purchase them. Sustainability, scalability and transferability: Excellent potential for replication in low-cost urban housing throughout South Africa and the developing world.