Affordability and consumer trust are two of the biggest barriers to renewable energy adoption in South Africa. That said, retail banks can play a critical role in addressing both challenges.  

That’s according to FNB Sustainability & ESG Solutions Lead Kival Singh who says that innovative finance and supplier credibility checks are two of the key ways banks like FNB can help more South Africans achieve the resilience and cost savings of sustainable energy solutions.  

Speaking at the Solar & Storage Live Conference in Cape Town, Singh outlined how FNB is meeting this responsibility through a three-pillar approach of education, solutions, and finance. “Households should start their sustainable energy journeys with conservation and behavioural change before moving to efficiency upgrades like LED lighting or heat pumps that can save up to 60% on energy bills. Only then can they make the best decision on the right solar PV Installation for their needs,” he added. 

Contextualising FNB's sustainability focus within South Africa's broader climate challenges, Singh also points out that these pressures have a societal impact that extends beyond the environmental to directly affects people's finances. 

"Choosing sustainable practices is not only good for the planet, but also for your pocket, and we all have a part to play in Africa’s energy transition," adds Singh. 

FNB has embedded its educational pathway into platforms like Nav>>Earth, which provides customers with insights on solutions and financing options as well as a calculator to help them find the best solution based on their electricity spend.  Customers can also find installers in their area on nav Marketplace.  

Central to FNB's approach is addressing the affordability constraints of solar power. The bank's solar-linked home loan product, for example, allows customers to finance installations of up to 15% above their property's loan-to-value ratio without an upfront payment.  This means for a home valued at R1 million with a 100% bond, FNB can advance up to R150 000 for a solar installation while adjusting the property valuation to R1.15 million, keeping the customer within the 100% loan-to-value threshold. 

"FNB customers can access solar financing at home loan rates rather than higher unsecured lending rates," Singh explained. "That’s how we're making renewable energy accessible to households who previously couldn't afford upfront capital costs."  

Our energy crisis in South Africa may have improved, but load reduction and unpredictable outages make it best to be prepared. The bank also offers standalone solar financing through WesBank asset-based finance, extending solutions across the residential and SME segments. FNB is due to launch Solar as a Service through key partnerships in the coming months, yet another option to provide clients with tailored solutions to meet their needs.  

Beyond affordability, consumer trust in suppliers remains a significant obstacle. Kagiso Masela, Channel Manager for FNB Sustainability & ESG Solutions, spoke at the conference about FNB's partnership approach with installers and contractors, and highlighted the bank's supplier vetting process as a critical value-add. "The average customer’s top concern is affordability; but there's also the question of how they can trust that a supplier is legitimate," Masela says. 

Fortunately, FNB's vetting process requires installers to provide CIPC documentation, business account confirmation letters, proof of training, and Department of Labour registration for electricians. The bank then pays these suppliers directly on behalf of their clients, once vetting and installation is complete, ensuring funds are used for installation while filtering out operators that may not be up to the required quality and reliability standards.  

Masela says this vetting service not only benefits customers through the assurance that the supplier meets minimum compliance requirements, but it also helps suppliers build their reputation by meeting standards set by a trusted financial institution. Moreover, the vetting process supports localisation and SME growth by directing financing to approved South African solar businesses. 

Singh and Masela agree that what distinguishes FNB's sustainability approach is its integration of solutions. Rather than just focusing on products, FNB bundles like nav» Earth energy, transport, housing, and insurance offerings support long-term resilience.  

“By encouraging and ensuring that installations are affordable, reliable, appropriately sized, and deliver the promised returns on investment, FNB is positioning sustainable finance as both environmentally responsible and financially smart for South African households and businesses,” Singh concluded.