Treasury has announced changes to its energy loan guarantee scheme to allow small businesses to invest in solar equipment.

John Perlman speaks with Vukile Davidson, Chief-Director of Financial Sector Policy at the South African National Treasury

As loadshedding rages on treasury is putting measures in place to help people become less reliant on the grid.

The aim of this scheme, known as the Energy Bounce-Back loan guarantee scheme, is to allow both small businesses and households to finance 1000MW of rooftop solar capacity in the next year.

Davidson says that power cuts have had a huge impact on small businesses and this intervention is to try and alleviate some of the strain that has been placed on them, and on households.

These measures do not just cover solar panels but also batteries, inverters and associated costs.

It is a much broader incentive package. That is the key difference in what we are rolling out.

Vukile Davidson, Chief-Director of Financial Sector Policy – South African National Treasury

Davidson says the mechanisms for this will be rolled out through participating banks.

Listen to the interview above for more.

More from Local