Country:South Africa
Policy status:In Force
Date Effective:2007
Policy Type:Economic Instruments>Fiscal/financial incentives>Grants and subsidies
Policy Target:Small and Medium sized Enterprises (SMEs), Industry, Appliances
Description:Eskom launched an Energy Efficient Motors Programme in mid-2007, and the pilot phase will last one year. The programme promotes the replacement of old, inefficient motors with new, highly-efficient motors, through subsidising the purchase cost. Efficient motor suppliers registered with Eskom are directly paid the subsidy, resulting in an immediate discount off the purchase price for the consumer. The subsidy aims to smooth out the price difference between standard and high-efficiency motors. The purchaser must trade in their old motor, along with all components, for scrapping. Subsidies are offered for 3 phase TEFC general purpose 4- and 2-pole induction motors ranging from 1.1 kW to 90 kW, meeting Eff 1 standards (premium efficiency). Motor efficiency ratings are based on European Union efficiency definitions, with Eff 1 being the most efficient, and Eff 3 being a standard motor. Subsidy amounts range from ZAR 400 to ZAR 3 500 depending on the motor replaced. For motors to be subsidised, the suppliers must be accredited by Eskom, for the companys financial status and the motors technical specifications to be verified and approved. Eskom Demand-side Management (DSM) will regularly perform random process compliance audits, while an independent measurement and verification body will verify the megawatt savings achieved by the programme.

Last modified: Wed, 16 Jan 2013 18:12:12 CET