With yet another recent electricity price increase, it is time for trustees of sectional title schemes or their managing agents to consider installing environmentally friendly systems to heat water and to save electricity in other areas.
Not only will installing equipment such as solar panels or heat pumps to heat water, LED lighting or lights with movement detectors for common areas and other energy saving devices, raise the value of units in the scheme, but this will help residents control their expenditure and save on electricity.
This is according to Johann le Roux, executive director of Propell, who says not only will installing such equipment as solar panels or heat pumps to heat water, LED lighting or lights with movement detectors for common areas and other energy saving devices, raise the value of units in the scheme, but this will help residents control their expenditure and save on electricity.
Solar panels and heat pumps will save around 40 percent on the overall electricity bills and apart from these helping to save money; they reduce the impact the development has on the environment. These energy saving systems usually pay for themselves within two to five years, after which, the residents will continue to enjoy the reduction in their electricity bills each month.
This type of installation is usually listed as a special project and trustees or managing agents might have been putting off carrying out this exercise because of a lack of funds or the reluctance to raise a special levy to cover the costs.
What many do not realise is that Propell offer project finance, particularly for large projects like this, says Le Roux. “Everyone is feeling the need to save energy and money but if you live in a sectional title scheme it relies on getting everyone to agree to it and the management of the scheme implementing the project.”
The finance available will enable the scheme to fund the installation in full and in most cases the monthly saving on the municipal account could cover the repayment instalment each month, he says.
Once the loan is repaid, the saving will help the body corporate’s cash flow and reduce the need for future increases in levies or the need to raise special levies for other projects i.e. they will be able to bank the surplus and build up a reserve fund.
Propell offer project finance to assist managing agents and trustees get the job done with minimum fuss and without having any of the trustees sign surety for the loan, which is often what would put people off applying for credit in the first place, he says.
“The facility can remain in place indefinitely and will only incur costs when used. The managing agent is therefore able to do his job properly, which ultimately is to ensure the scheme is run efficiently.”
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