HF managing director Frank Ireri (right) with Daystar University vice chancellor Timothy Wachira (left) and the Chancellor, Dr. Florence Muli-Musyiime, during the signing of a solar financing partnership on March 4, 2015. PHOTO | FILE
What you need to know:
Housing Finance is seeking to profit from a law which imposes a 2017 deadline for building owners to install solar heaters.
The loans scheme will see households and commercial entities borrow amounts starting from Sh100,000, repayable in 36 months.
Mortgage lender Housing Finance has started advancing loans for solar heaters to households and businesses consuming over 100 litres of hot water daily.
The lender is seeking to profit from a law which imposes a 2017 deadline for building owners to install solar heaters.
The loans scheme will see households and commercial entities borrow amounts starting from Sh100,000, repayable in 36 months.
“This product addresses customers’ needs to comply with existing energy regulations. Solar systems are currently mandatory for new developments and by 2017 all home owners and developers will be compelled to install them,” said HF managing director Frank Ireri.
Older properties were given up to 2017 to comply with the law. HF has partnered with five companies certified by the Energy Regulatory Commission (ERC) to install solar heating systems. They include Chloride Exide, Davis and Shirtliff and Solimpex Africa.
The company will allow a longer repayment period of up to 60 months for learning institutions and non-governmental organisations.
Mr Ireri said that on average a household of five uses 150 litres of hot water a day which costs Sh165 in electricity costs. This translates to Sh60,000 per year.
Pavel Oimeke, the ERC director for renewable energy, said the high consumption on heating water using mains electricity puts a strain on the national grid especially during peak hours.
“Installation of solar water heating systems in small three-bedroom houses is financially viable on the basis of savings on electricity bills,” he said.
The cost of a 300-litre solar water heating system ranges from Sh120,000 to Sh225,000 at current market rates.
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