STIMULUS Investments announced on Friday that it has bought a stake in Khomas Solar Saver.
The company said it had successfully concluded a transaction involving an investment in Khomas Solar Saver, a newly established special purpose vehicle to focus on the renewable energy sector.
"Through this investment Stimulus will subscribe for 67,6% ordinary shares and advance a shareholder's loan to the business. The balance of the ordinary shares are owned by Sedgeley Solar Management (Pty) Limited, whose shareholders comprise key members of management and the founding shareholders," the company said.
Khomas Solar operates in the renewable energy sector providing installed rooftop solar photovoltaics (PV) systems to the Namibian market.
According to information gathered by The Namibian, the company´s business model is based on the financing and long-term rental of rooftop solar PV systems, which allows clients to instal a complete solar PV system without any capital outlay.
"The target market is primarily corporate and commercial clientele with high-grade properties of long-term relevance," Stimulus said.
Khomas Solar started the business during the course of 2016 and has to date installed 12 solar PV systems with further 14 PV systems in the process of being commissioned.
The company focuses on installations with peak capacity of between 17 kilo watt peak ('kWp") and 500 kWp with a capital outlay ranging between N$350 000 and N$7 million per single site installation.
Stimulus said its investment in Khomas Solar will strengthen the company´s balance sheet in order to take advantage of increased opportunities in the renewable energy sector driven by growing demand by corporates to 'go green.'
"Khomas Solar has a highly competent management team with a unique combination of technical and financial expertise to roll out and manage the company´s business plan."
Talking about the prospects that the transaction will have on its fortunes, Stimulus said the transaction has the potential to enhance value for the Stimulus portfolio and increase its dividend generating capacity.
"Stimulus believes that the company enjoys a first-mover advantage in the financing and rental model of solar PV systems that could position itself strongly in the Namibian market," the company said.
The demand for renewable energy, based on savings, as well as the generally favourable sentiment towards green technology is expeced to remain key drivers of future growth in the Namibian market. According to statistics provided by mines minister Obeth Kandjoze in his budget speech last year,
14 renewable energy feed-in tariff (Refit) projects of 5 MW each at different locations countrywide (70MW in total), 20 MW solar PV from independent power producers, 44 MW wind energy projects from independent power producers were being planned to be developed.
The mines ministry has expressed commitment to deploy renewable energy technology in order to supplement energy supply for the simple reason that Namibia has demonstrated to be amongst the nations of the world with excellent wind energy and irradiation potential.