28 November 2024, Johannesburg – “Obtaining financing for a renewable energy project is sometimes a difficult and time consuming process, but it’s a critical first step to providing a client with energy independence,” says Armand van Vuuren, sales agent for Mossel Bay-based engineering, procurement and construction (EPC) company Eagle Solar, which does countrywide renewable energy installations.
“While lenders will often provide the necessary capital, the cost of that capital can be high, which cuts into our bottom line.” However, Fibon Finance, a subsidiary of South Africa’s Fibon group, offers a far more attractive alternative: instead of financing end customers, it provides EPC businesses with the capital required to bring their customers’ projects to fruition.
While other entities do provide such funding, Fibon Finance offers three distinct advantages over the competition, says Fibon CEO Avesh Padayachee. “Firstly, we’re quick – we can deploy capital in 10 working days. Unlike conventional lenders, we’re able to assess a project and perform credit checks in a short space of time, drastically curtailing the three- to six-month minimum it usually takes to arrive at a funding decision.”
This is because, secondly, we intimately understand renewable energy systems. As an experienced provider of turnkey EPC projects, we have the in-house expertise to manage any renewables initiative – without having to call in costly third-party project assessors,” says Padayachee. “Fibon Finance’s third advantage,” continues Padayachee, “is that it is far more than a finance house: it is able to provide two value-adding product offerings. Through a fellow subsidiary, Fibon Carbon, we offer EPC and end customers 10-year annuities on the sale of carbon credits – giving them the opportunity to generate long-term income from their projects.”
“And for customers who require reliable round-the-clock or peak-time energy, we can, via Fibon Wheeling, offer wheeled power. This entails solar or wind energy generated sustainably by us and fed into the national grid, then delivered to the end user wherever they are and whenever they need it.” All this adds up to a comprehensive, cost-effective, quick, sustainable energy offering that no other South African company – or, for that matter, finance house – is able to match, Padayachee says.
States Van Vuuren, “The Fibon Finance model is fast, more affordable and convenient. And because Fibon is itself a renewable energy company, it understands us and what we do, and what our risks are. It can therefore quickly and practically assess the project for which we need funding, helping to keep our project costs down and allowing us to get to work sooner rather than later. In turn, that means a happy client and a better reputation for Eagle Solar.”