As demand grows for reliable and sustainable energy solutions, Absa Bank Botswana is helping homeowners transition to solar power through its Green Energy Loan. The financing solution enables customers to fund solar panels, batteries, inverters and installation costs without a deposit, making renewable energy more accessible and affordable while supporting Botswana’s sustainability ambitions. Motshidisi Sebina, Product & Portfolio Manager, Lending, speaks to BABOLOKI MEEKWANE about the product’s affordability, potential electricity savings, application requirements and plans to expand the bank’s renewable energy financing offering, as well as the role of banks in accelerating Botswana’s transition to solar energy.
Q: Could you explain what the Absa Green Energy Loan is and what it covers?
A: The Absa Green Energy Loan finances solar energy solutions. It forms part of our environmental, social and governance (ESG) commitment at both group and country level. Currently, the facility finances the full cost of residential solar panels, inverters, batteries and installation costs required for a complete and fully functional system.
Customers can access financing of up to P500,000 over a repayment period of up to 84 months, with no deposit required. The product is structured to ensure affordability, with monthly repayments designed to be broadly comparable to an average household’s current electricity spend. In addition, customers can benefit from the Botswana Power Corporation (BPC) Rooftop Solar Programme, which allows qualifying households to feed excess electricity back into the grid and receive credits, further enhancing the long-term value and savings associated with solar adoption
Q: What prompted Absa to introduce this financing solution?
A: From a sustainability perspective, we adhere to global sustainability goals, and our products are designed to support them. This particular product aligns with the goal of affordable and clean energy while helping us fulfil our environmental responsibilities. Solar energy is renewable and can reduce carbon emissions.
When reporting on this product, we look beyond financial returns. We also report on emissions saved, the number of trees equivalent to those savings and reductions in carbon footprints. The product therefore forms part of our commitment to sustainability and to operating as a responsible financial institution.
Q: What are the main customer benefits, particularly in terms of affordability?
A: The Absa Green Energy Loan makes solar energy more accessible by offering 100% financing with no deposit required and preferential pricing. For many households, monthly loan repayments can be comparable to their current electricity bill. For example, a P80,000 solar installation may require repayments of around P1,400 per month.
Customers can immediately begin reducing their electricity costs by generating their own power, with those savings helping to offset loan repayments. In addition to long-term cost savings, customers benefit from greater energy security and reduced reliance on the grid. Once the loan is repaid, they continue enjoying the benefits of the solar system without any monthly loan instalments.
Q: Does this mean customers begin saving immediately,or does it take time for the investment to pay for itself?
A: Yes, customers can start realizing savings from day one by using electricity generated by their solar system and storing excess power in batteries for use when needed. This reduces reliance on grid electricity and lowers monthly energy costs.
Customers who connect their systems to the BPC Rooftop Solar Programme can further benefit by exporting excess electricity to the grid and receiving credits on their electricity account. Depending on the size of the installation and energy consumption patterns, some customers have seen their electricity bills reduce significantly. Ultimately, the combination of self-generation, battery storage, and potential grid credits helps improve the return on investment while delivering long-term savings.
Q: What are the requirements for applying for the AbsaGreen Energy Loan?
A: Applying for the Absa Green Energy Loan is straightforward. Customers are required to provide standard loan application documents, including valid identification, proof of income, and other KYC documentation. In addition, we require proof of property ownership, such as a title deed, or written consent from the property owner where the installation will be on a third-party property.
Customers must obtain quotations from approved and vetted solar installers, who will conduct a site assessment and recommend an appropriate solution based on the property’s energy needs. Once a supplier has been selected, the proposed installation is submitted to BPC for approval under the rooftop solar programme, where applicable.
Following BPC approval, Absa conducts an affordability assessment. Once the loan is approved, the selected supplier can proceed with installation, ensuring customers receive a quality-assured solar solution from trusted providers.
Q: At what stage does Absa pay the supplier, and how does the process protect the customer?
A: Absa pays the supplier directly on the customer’s behalf, ensuring that loan proceeds are used for their intended purpose. To protect customers, payment is only released once the installation has been completed, the system has been commissioned, and all required documentation has been submitted.
This process provides assurance that the solar solution has been properly installed, verified, and, where applicable, approved by BPC before funds are disbursed. By working with vetted suppliers and linking payment to successful installation, we help safeguard customers’ investments and promote quality solar installations. Customers who require additional assurance may also engage an independent assessor to review the installation.
Q: Can customers combine the Green Energy Loan with home-loan financing when buying or building a house?
A: Yes. Customers buying or building a home can apply for the solar solution as part of their home-loan arrangements. This allows them to incorporate the system into the financing process so that the house can be equipped with solar from the time they move in.
The benefit is that customers can reduce their electricity expenditure from the beginning of their ownership of the property.
Q: How has customer uptake been so far, and what feedback have you received?
A: Customer interest in the Absa Green Energy Loan has been encouraging, as more homeowners recognize the value of investing in reliable and sustainable energy solutions. We are also seeing growing awareness and understanding of solar energy, with customers becoming more confident in its affordability and long-term benefits.
One advantage is that customers do not have to invest in a large system immediately. They can start with a smaller solution and expand it over time.
Feedback from customers has been very positive, particularly around lower electricity costs, improved energy independence, and uninterrupted power during outages. Many customers appreciate the reliability of their solar systems and the peace of mind that comes with reduced reliance on the grid.
Q: Is the Absa Green Energy Loan a standalone product, or does it form part of Absa’s wider renewable energy financing strategy?
A: It forms part of our broader strategy. We are involved in the wider ecosystem, including supporting vendors who install solar systems for our customers. We are therefore involved across the value chain, and we intend to expand the range of solutions available under this offering.
Q: How do you see solar energy adoption developing in Botswana?
A: We expect solar adoption in Botswana to continue growing as homeowners seek more reliable, affordable, and sustainable energy solutions. Botswana’s climate is well suited to solar energy, and through accessible financing and ongoing customer education, we are helping to make the transition easier.
As awareness increases and customers become more familiar with the benefits of solar, we believe it will become an increasingly common feature in Botswana homes. Our ambition is to play a meaningful role in accelerating this transition and expanding access to green energy across the country
Q: What opportunities do you see for banks to support Botswana’s transition towards renewable energy?
A: Banks need to be intentional about how they allocate capital and reserve some of it for financing projects of this nature, whether for commercial or residential purposes. As financiers, we should not become a barrier to the transition. We should enable customers to invest in solutions that deliver long-term economic and environmental benefits.
Q: What can Absa customers expect in terms of new green financing solutions over the next six to twelve months?
A: Over the next six to twelve months, customers can expect stronger partnerships with vetted solar providers, BPC, and other stakeholders to make green energy solutions more accessible. We will also continue investing in customer education and explore opportunities to expand our green financing offering to meet evolving customer needs.
