31 January 2022

How community schemes can go green with Propell

Submitted by Aidan van Vuuren

Rising utility costs and the demand for sustainable solutions affects community schemes nationwide. Increases in electricity and water tariffs often impact schemes such as Sectional Titles and housing estates. Eskom Chief Financial Officer, Calib Cassim, has confirmed that Eskom has applied for an electricity price increase of 20.5% for Financial Year 2023, which commences on 01 April 2022. This will significantly impact community schemes, and the time for going green is now.

However, community schemes are not stuck without options. The newly-gazetted change to the Electricity Regulation Act regulations will allow private individuals and businesses to generate up to 100KW of electricity for their own use without having to obtain a licence from the National Energy Regulator. This means that community schemes could generate their own electricity for communal areas or homes in the scheme.

Implementing alternative energy and water-saving solutions is incredibly important not only for the homeowners but for the body corporate and HOA too. Sustainable energy-saving projects can seem daunting because of the expenditure involved, but once owners understand the long-term impact, it just makes sense.

Would your scheme like to be less dependent on municipal electricity?

At Propell, we work with many community schemes that implement energy and water-saving solutions. Some of the ways community schemes can go green include:

  • Switching to energy-saving LED lightbulbs
  • Installing prepaid water and electricity meters
  • Installing a photovoltaic (PV) electricity supply system
  • Sinking a borehole which is beneficial for communal gardens
  • Installing rainwater harvesting and storage systems
  • Using generators to power security systems etc.

The benefits of going green include:

  • Reduce dependence on municipal electricity supply and save on utilities
  • Have a positive impact on the environment by going green
  • Be able to have power during load shedding
  • Enhance the value of the property
  • Become an attractive place for buyers and tenants to invest and live

How can Propell financially help your scheme to go green?

Propell’s Project Loans is an excellent way for community schemes (sectional title schemes and homeowners associations) to get the funding they need for energy saving solutions like these that are necessary for going green. Project Loans are unsecured revolving loan facilities provided to sectional title schemes and homeowners associations. Project loans can be used for installing solar panels, prepaid meters, sinking boreholes and much more.

Benefits of Project Loans

  • Funds are immediately available
  • You decide when and how much to draw
  • Flexible repayment terms of up to 5 years
  • Only pay interest for what you use and when you use it
  • No surety or cession of levies required
  • No penalty for early settlement

How to get started

  • Contact Propell to apply for a Project Loan for your community scheme
  • A revolving facility is approved, and the funds are available immediately
  • The community scheme can drawdown as required
  • The community scheme can select its preferred repayment term
  • Repay each drawdown in equal monthly instalments

If you would like to apply for a Project Loan for your community scheme, contact Propell.

If you are considering implementing sustainable energy solutions in your community scheme, it’s important to be aware of the rules and regulations surrounding this. The implementation of certain projects require different types of resolutions. If you’re unaware of the rules applicable to your community scheme, it is always best to consult an attorney or specialist in the field.

We will be discussing the various types of resolutions in our upcoming blog.

Best Company News

It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, we’re here to help you tell your story online.