Big-four bank First National Bank (FNB), in collaboration with strategic partners, has launched “FNB Energy Solutions” − a renewable energy offering to ease the financial and administrative burden of renewable energy transition for South African businesses.
According to the financial services institution, the strategic move is aimed at addressing the growing demand for affordable, reliable and sustainable energy solutions.
In a statement, FNB notes businesses can acquire an energy-as-a-service solution via a power purchase agreement (PPA) model, where FNB Energy Solutions retains ownership of the renewable energy infrastructure and sells the energy produced to the client.
It notes the solution primarily focuses on solar photovoltaic (PV) installations, with or without battery backup, but other renewable energy technologies can be considered, to meet specific client needs.
It is for businesses that have significant daytime electricity demands, typically spending upwards of R200 000 per month on electricity. The minimum generation capacity provided is 300kW, which suits high-energy users that have sufficient roof space at their premises for the solar panels required.
Monique Botha, FNB sustainable energy lead, says: “FNB Energy Solutions focuses on helping businesses to address challenges, such as energy security and rising electricity costs, while also supporting their efforts to meet their sustainability targets – all without significant upfront capital investments, or the need to take on the management of their renewable energy assets.”
The foundation of the FNB Energy Solutions offering is its partnership approach, the bank notes. It adds that the model involves collaboration between FNB, as the funding provider for these projects, with technical and asset management partners that are established leaders in South Africa's renewable energy industry.
On the technical side, development partners ACES Africa, Nuvo Energy, Rhino Energy and RenEnergy bring expertise in solar PV, energy storage solutions and custom system design. For project facilitation and ongoing management, SOLINK and Matriarch provide advisory services and ensure optimal asset performance.
FNB Energy Solutions retains ownership of the renewable energy infrastructure, which is installed at a client’s premises by one of its development partners and managed by FNB Energy Solutions.
While many providers in the market require 20- to 25-year commitments, FNB Energy Solutions says it typically offers shorter PPAs, providing businesses with flexibility.
This shorter-term approach allows companies to adapt their energy strategies as technology and market conditions evolve.
FNB Energy Solution's development partners are mandated to design efficient and cost-effective solutions that potentially offer immediate financial benefits to clients. This focus on cost-effectiveness ensures businesses can potentially see returns on their investment from day one.
After the fifth year, clients have the option to purchase the entire renewable energy plant at a predetermined price. This feature provides businesses with the flexibility to transition from a service model, to outright ownership when it aligns with long-term energy strategies.
“FNB Energy Solutions is not just about financing – it’s about providing a full-service energy solution,” Botha emphasises.
FNB Commercial says it is focused on offering customers trusted beyond-banking services in adjacent activities with technical partners, to deliver greater value within a broad ecosystem.
"We're not claiming to be reinventing the wheel, but we do believe we’re significantly improving it,” comments Kyle Durham, head of sustainability at FNB.
“The FNB Energy Solutions approach offers tangible improvements to existing models and reflects our commitment to supporting sustainable business practices and contributing to SA's broader energy transition."
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