City of Cape Town Residential Solar Water Heater
Accreditation Programme
Environmental Resource Management
Date: 17/09/2014
Solar Water Heater (SWH) Marketing Barriers to Overcome
• Overselling
• Bad sales and after sales service
• Bad quality products
• Bad quality installations
• High upfront cost
The reason for the City to help overcome Market Barriers
The City wishes to encourage local residents to move
towards a greater use of sustainable energy by
installing products that are more energy efficient,
cleaner to the environment and assist in the national
need for more demand-side management
particularly during this period of supply side difficulties
for power generation.
How to overcome the Barriers
City of Cape Town introduced a Endorsement
Scheme.
The City has decided to act in a facilitative and
supportive role to try and encourage the faster roll-out
of domestic HP-SWH’s by:
• Commencing a public awareness and educational
campaign
• Working with local service providers to try and
improve public confidence in the industry
• Working with banks and other lending institutions to
facilitate instalment finance and bulk funding
The Endorsement Process
The Endorsement Process
• The PMLU released application documents with a
explanatory leaflet
• After completion of application document, hand in
document at PMLU
• PMLU will issue a receipt
• PMLU will screen application to City’s criteria
• After completion of screening process, list of approved
applicants will be listed on City’s website
• An appeals process will exist.
The Rules
• Accreditation for endorsement requires an S.P. to meet
our Evaluation Criteria.
• The criteria cover technical and business competence
and capacity, product standards and warranties, financial
capacity and local content.
• Links to financial institutions are needed to offer
instalment finance to clients.
• Abiding by a Code of Conduct will be mandatory.
THE PROGRAMME MANAGEMENT UNIT
The Programme Management Unit
• The roles cover screening applications, monitoring
performance and mediating disputes.
• Applications will be screened to meet the set Evaluation
Criteria for endorsement.
• A list of endorsed S.P.’s will be maintained for validation
by the public (accessed at City website, offices and
telephonically).
• S.P. installations will be randomly inspected for technical
compliance & with the Code of Conduct. (PIRB &
WCAEIA)
• If disputes occur between an S.P. and client, the PMLU
can mediate to try and resolve the issue.
Non Compliance
• Serious non-compliance and failure to follow the Code of
Conduct will result in “de-listing.”
• An appeals process will exist.
• The need is to ensure the growth of public confidence in
the Endorsement Scheme.
• We expect that the banks will tend to lose faith in
delisted S.P.s as it also would cause them potential
difficulties with the loans.
Evaluation Criteria Principles
• The objectives are to accredit S.P.’s that can build
confidence in the consumer market – so:
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Technical competence and capacity.
Business capacity – a sustainable track record.
Product reliability, effectiveness and spare parts.
Maximise local content – a Mayoral priority.
A 5-year warranty and annual servicing.
Financial standing to satisfy the banks.
PRODUCT SPECIFICATIONS
Product Specifications
• Note that only SWH’s will be considered.
• It is required that the SWH will meet the minimum
technical and performance standards set by SANS 1307,
and that the product will bear the SABS mark of
approval.
• A 5-year warranty on all major parts will be compulsory.
• SWH must also comply with SATS 1286, which specify
the DTI criteria for locally manufactured products as
prescribed in the amended Preferential Procurement
Policy Framework Act (PPPFA).
S.P. PRACTICAL CAPACITY
Service Providers Practical Capacity
• We will require details of qualified staff employed with
proof of relevant trade registrations such as plumbing
and electrical.
• All SWH installations must comply with SANS 10106 and
SANS 10142/1.
• Any out-sourcing proposals must be on the basis of
“Nominated Sub-contractor” status with letters of
appointment and acceptance.
• Emphasis is also on maintenance and repair abilities as
well as installation experience.
Instalment Finance Facilities
• City has discussed the project with leading financial
institutions for awareness and products.
• Retail banks are interested and have suitable existing
products that they can utilise.
• Bulk concessionary finance may be available but
probably only to the largest S.P.’s.
Code of Conduct
• An integral part of the contract between S.P.’s and the
City.
• Intended to establish suitable standards for the
“endorsement” brand.
• Will cover marketing, the sale agreement, product
warranties, maintenance and servicing.
• Will set principles for the use of instalment finance
facilities by S.P.’s.
Contact Details
Tel: 021-487 2010
E-Mail: swh.info@capetown.gov.za
Website: www.SavingElectricity.org.za
Thank You