How to use your stokvel to save for alternative energy solutions

The reality of load shedding is challenging consumers to start looking at alternative power to keep their lights on. While the upfront costs of alternative energy solutions can be daunting, the risk of losing productivity makes them a more viable option. Which is why group savings initiatives like stokvels could be useful.

The cost of living in South Africa keeps rising, and with load shedding, households are forced to make alternative plans to keep the lights on. This means consumers need to start thinking about smart ways to meet their energy needs in a sustainable manner by saving for back-up power or more long-term alternative energy solutions like solar. Group savings vehicles such as stokvels could motivate many to save for the associated costs.

Here are a few options for those wishing to save or invest in alternative energy solutions:

Inverters: Stokvel members could pool funds to purchase inverters for each member. During load shedding, inverters could be used to power appliances such as a laptop, Wi-Fi, and television. A stokvel could either buy solutions in bulk to potentially get discounts or make monthly purchases for members on a rotational basis. Depending on the inverter’s capacity, some can provide power for a few hours to allow you to stay productive at home during load shedding.

Battery backup system: This is a more sophisticated kind of backup power that is linked to your electrical system. The level of power you get is determined by the battery’s storage capacity, which charges when electricity is restored. This system is typically more expensive than a basic residential generator but less expensive than a full solar installation. If a stokvel receives significant financial contributions, this is an option, and everyone can use the same system.

Solar installation: Members could save money to pay for solar systems every so often. To keep costs down, it may be best to go with a standard installation and members can always add more solar panels and batteries over time to increase their solar power. This could help stokvel members get off to a good start with clean energy, while getting necessary reprieve against load shedding.

FNB recently launched nav»Energy on the FNB App, which provides education, energy solutions, and financing options. Customers can find solar providers on the FNB App and purchase alternative energy solutions via the eBucks Shop with cash, eBucks, or a combination of the two. The range includes mini-UPS solutions, portable power stations, inverter trolleys, and complete solar solutions.

Using stokvels to save up for alternative energy solutions could be a long-term investment that could even make your house more valuable.

More importantly, you could save on out-of-pocket costs in the long run.

It’s also important for stokvels to ensure they’re working with reputable suppliers, hence the importance of using trusted platforms when looking for products or suppliers.

In the past few months, the South African government has also said it will help families by giving tax incentives for installing solar panels. This is another benefit to think about.

Sifiso Nkosi is head of FNB Stokvels and Group Savings.