1. NATIONAL SOLAR WATER HEATER (NSWH) PROGRAMME Summary / Discussions 1 Purpose: Summarise Workshop Discussion Date: 04 September 2015

2. Summary … DoE provided a historical background to the national solar water heater programme (NSWHP) and further advised that: – On the 24 June 2015 the Cabinet Approved that the re-appropriation of funds to DoE be consulted with the Minister of Finance. – The programme’s institutional arrangements have been re-engineered. – DoE will implement the new programme as outlined in the Revised Conceptual Framework which was presented in the Municipal Engagement Workshop – All programme management and implementation is now centralised at DoE. – DoE seeks to test/pilot the revised programme implementation framework prior to considering delegating some of its elements to municipalities. – The categorisation of the programme as low and high pressure programme has now been replaced by the social and load reduction programme respectively. – Approved HP SWH systems, with a volume of up to 150L, will also be installed in the low-end market. – Systems under the social programme will be fully subsidised whilst partial subsidies will be offered for costlier systems (> 150L) under the LRP. – No Service Providers have been contracted by DoE to implement the NSWHP. 2

3. Summary … – There’s currently no SWH funding application process. – Municipalities should therefore no longer sign Letters of Intent/Service Level Agreements/Memorandums of Understanding in anticipation of DoE SWH funds. – In due course municipalities will receive a DoE-Municipal Framework Agreement that outlines, among other things, the conditions for participation in the NSWHP. – The designation of installation areas by municipalities should be treated as a matter of urgency. 3

4. Next Steps DoE will share the following documentation on 07 September 2015: – Workshop presentations – Summary discussion for the workshop – Scanned attendance registers – Latest list of municipalities that have made SWH RFI submissions – Envisaged roles for the NSWHP SteerCo participating organisations Once internal processes are concluded, DoE will circulate the Framework Agreement for municipal sign-off. DoE further committed to share the narrative for the NSWHP Conceptual Framework no later than the end of Q3: 2015/16. 4

5. Common Questions/Issues 5 IssueResponse Requirement for participating in the NSWHP RFI Submission and signing of the Framework Agreement Maintenance and repair plan for previously installed systems To be attended to in parallel with new installations Inclusion of rural municipalities with specific reference to technical requirement Technical constraints need to be reported to DoE for further consideration by the relevant SteerCo participant(s) Climatic zone recognition when implementing the project Freeze resistance status systems to be appropriately considered Criteria for qualification of traineesPresentation on training of locals Appointment/accreditation of manufacturers and installers All procurement of goods, services and works will be done by DoE