1. City of Cape Town Residential Solar Water Heater Accreditation Programme Environmental Resource Management Date: 17/09/2014

2. Solar Water Heater (SWH) Marketing Barriers to Overcome Overselling Bad sales and after sales service Bad quality products Bad quality installations High upfront cost

3. 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.

4. 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

5. The Endorsement Process

6. 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.

7. 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.

8. THE PROGRAMME MANAGEMENT UNIT

9. 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.

10. 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.

11. Evaluation Criteria Principles The objectives are to accredit S.P.’s that can build confidence in the consumer market – so: 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.

12. PRODUCT SPECIFICATIONS

13. 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).

14. S.P. PRACTICAL CAPACITY

15. 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.

16. 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.

17. 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.

18. Contact Details Tel: 021-487 2010 E-Mail: swh.info@capetown.gov.za Website: www.SavingElectricity.org.za

19. Thank You