ENERGY EFFICIENT HOUSING

HOUSING IN THE LOW-

LOW-INCOME
HOUSING SECTOR IN SOUTH
SOUTH AFRICA

Project Document (revised 2008)

Danida
Thubelisha
Department of Housing
April 2008

i
TABLE OF CONTENTS

LIST OF ABBREVIATIONS ................................................................................................................................................... IV

1. INTRODUCTION AND BACKGROUND TO THE PROJECT .............................................................................................. VI
2. OVERALL APPROACH: N2 GATEWAY HOUSING DEVELOPMENT AS THE FOCAL POINT................................................ VIII
3. OBJECTIVES & OUTPUTS....................................................................................................................................... VIII
4. ACTIVITIES ......................................................................................................................................................... IX
5. BUDGET ................................................................................................................................................................ XI
6. EXECUTIVE SUMMARY ........................................................................................................................................... XII
7. PROJECT DOCUMENT (REWRITTEN 2008).............................................................................................................. 13
7.1 National Socio-Economic Context............................................................................................................. 13
8. INSTITUTIONAL FRAMEWORK ................................................................................................................................. 15
8.1 Public Sector Institutions ........................................................................................................................... 15
9. REGULATORY FRAMEWORK................................................................................................................................... 18
9.1 Legislation and Policies............................................................................................................................. 18
10. SUSTAINABILITY & ENERGY EFFICIENCY PRIORITIES – A CASE FOR SWH IN LOW-INCOME HOUSING .................... 22
10.1 Energy Efficiency Strategy ........................................................................................................................ 22
10.2 SWH: N2 Gateway Application.................................................................................................................. 22
11. APPROPRIATE ENERGY EFFICIENT TECHNOLOGIES & APPROACHES .............................................................. 26
11.1 National Norms & Standards..................................................................................................................... 26
11.2 Appropriate Technologies ......................................................................................................................... 30
12. A PROCESS TO FOLLOW FOR ENERGY EFFICIENT HOUSING ................................................................................ 38
12.1 Application: N2 Gateway ........................................................................................................................... 38
13. FINANCE MECHANISMS..................................................................................................................................... 40
13.1 Government Subsidies .............................................................................................................................. 40
13.2 Financing mechanisms.............................................................................................................................. 41
14. COMMUNICATION AS A CRITICAL COMPONENT OF SUSTAINABLE DEVELOPMENT ................................................... 45
14.1 Communication is Core to the Energy Efficiency Strategy ........................................................................ 45
14.2 Housing Consumer Education Framework................................................................................................ 45
14.3 Education as a Tool................................................................................................................................... 46
14.4 Status Quo ................................................................................................................................................ 46
15. RECOMMENDATIONS AND CONCLUSIONS .......................................................................................................... 47
15.1 Regulations on Energy Efficiency.............................................................................................................. 47
15.2 Enforcibility................................................................................................................................................ 47
15.3 Financing................................................................................................................................................... 47
15.4 Light Bulbs................................................................................................................................................. 47
15.5 A Uniform Regulatory System ................................................................................................................... 47
15.6 Local Government..................................................................................................................................... 48
15.7 Sustainable Settlements............................................................................................................................ 48
15.8 Identifying Actions and Opportunities........................................................................................................ 49
15.9 IEP and DSM............................................................................................................................................. 49
15.10 Energy efficiency and electrification .......................................................................................................... 49
15.11 Energy efficiency and transportation ......................................................................................................... 50
15.12 Thermal performance and integrated design............................................................................................. 50
15.13 Education, capacity building and skills training ......................................................................................... 51
15.14 Revised Norms and Standards ................................................................................................................. 51
15.15 A Case for Better Planning........................................................................................................................ 51
16. BIBLIOGRAPHY& REFERENCES ......................................................................................................................... 54
17. APPENDIX 1: CONSULTATIONS .......................................................................................................................... 56
17.1 Interviews .................................................................................................................................................. 56
17.2 Interview Focus ......................................................................................................................................... 57
18. APPENDIX 2: SUPPLIERS .................................................................................................................................. 72
18.2 List of other suppliers ................................................................................................................................ 72
19. APPENDIX 3: SOLAR WATER HEATING PRODUCTS ............................................................................................. 73
19.1 Solardome SA ........................................................................................................................................... 73

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 19.2 Sonpower .................................................................................................................................................. 73
19.3 ITS solar.................................................................................................................................................... 73
19.4 Sun power ................................................................................................................................................. 73
19.5 Frantel distribution..................................................................................................................................... 74
19.6 Gilder Geyser ............................................................................................................................................ 74
19.7 Atlantic Solar ............................................................................................................................................. 74
19.8 Solar max .................................................................................................................................................. 74
19.9 Extenda Summer....................................................................................................................................... 75
19.10 Solar beam................................................................................................................................................ 75
19.11 Suntank ..................................................................................................................................................... 76
19.12 Solien ........................................................................................................................................................ 76
20. APPENDIX 4: COSTS ASSOCIATED WITH ENERGY EFFICIENCY MEASURES ............................................................ 77
20.1 Energy Cost............................................................................................................................................... 77
20.2 Payback Periods ....................................................................................................................................... 77
20.3 Payback Periods - All ................................................................................................................................ 77
21. APPENDIX 5: CHIEF TECHNICAL ADVISOR - TERMS OF REFERENCE ................................................................... 78
21.1 Background ............................................................................................................................................... 78

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LIST OF ABBREVIATIONS
AC Alternating Current GEAR Macro-economic strategy for
ARI Acute respiratory illnesses Growth, Employment and
CBA Cost Benefit Analysis Redistribution
CBO Community Based GEF Global Environmental Facility
Organisations GHG Greenhouse gas(es)
CCT City of Cape Town, IDC Industrial Development
http://www.capetown.gov.za Corporation,
CDM Clean Development Mechanism http://www.idc.co.za/
(one of the pilot Flexible IEDS Integrated Decision Support
Mechanisms of facilitating flow Model
of climate-change linked IEP Integrated Energy Planning
investment from the developed IIEC International Institute of Energy
to the developing countries) Conservation
CEF Central Energy Fund, IPCC Intergovernmental Panel on
http://www.cef.org.za/ Climate Change
CFL Compact Flourescent Lighting kWh Kilowatt hours - Unit for
CO Carbon Monoxide measurement of electrical
CO2 Carbon Dioxide energy
CSIR Council for Scientific and LPG Liquefied Petroleum Gas
Industrial Research NBR National Building Regulations
Danida Danish International NER Nation Electricity Regulator
Development Assistance NGO Non-Governmental Organisation
DBSA Development Bank of Southern NHBRC National Home Builders’
Africa, http://www.dbsa.org/ Registration Council
DEAT Department of Environment NPV Net Present Value
Affairs and Tourism, PEER Africa Pollution, Environment,
http://www.deat.gov.za/ Community Development and
DME Department of Minerals and Energy Resources, Africa
Energy PHDB Provincial Housing Development
DoH Department of Housing Board
DSM Demand Side Management PHP Peoples Housing Process
DSWH Domestic solar water heating PPP Public-Private Partnership
(with electric back-up) PSC Project Steering Committee
DTI Department of Trade and PV Photovoltaic
Industry RDP Reconstruction and
EDC Energy Development Development Programme
Corporation, (mainly refers to the low-income
EDRC Energy and Development house type/design commonly
Research Centre, University of built for the housing programme
Cape Town after 1994
EE Energy Efficiency RE renewable energy
EEH Energy efficient housing RFP Request for Proposal
EIA Environmental Impact RHLF Rural Housing Loan Fund
Assessment Roof ins Roof insulation
EIP Environmental Impact Plan SABS South Africa Bureau of
ESCO Energy service company Standards,
ESLCHTT Environmentally Sound Low- http://www.sabs.co.za/
cost Housing Task Team SAHF South African Housing Fund
EU European Union SDI Spatial Development Initiatives
GDP Gross Domestic Product

iv
SEED Sustainable Environmental
Energy and Development
Shared wall Shared wall of the row house
SHF Social Housing Foundation
SHS Solar home system
(photovoltaic - PV)
SMSEs Small and Medium Scale
Enterprises
SWH Solar Water Heating
TIASA Thermal Insulation Association
of South Africa
TREC Tradable Renewable Energy
Certificate
TSP Total suspended particulates
UDS Urban Development Strategy
W Watt (unit for measurement of
power: also expressed as
Joules per second -J/s)
WHO World Health Organisation

v
1. INTRODUCTION AND BACKGROUND TO THE PROJECT
South Africa and Denmark have co-operated on environmental initiatives since 1995. The co-operation
covered many of the main environmental concerns related to South Africa including sustainable energy. Since
August 2001, extensive consultations have been held with the South African Government on the future
direction of environmental cooperation. It had been decided to prioritise future environmental co-operation on
consolidating and strengthening the co-operation initiatives within Urban Environmental Management (UEM)
and energy.
The South African National Department of Housing received a funding commitment from the Danish
International Assistance (Danida) environmental programme for a project on the Mainstreaming of Energy
Efficiency in Low-income Housing.
The pilot project seeks to fully integrate the aspect of energy efficiency within the subsidised housing sector,
which is a national housing subsidy scheme of the South African government. Subsidised housing is
specifically aimed at low-income groups throughout the country, and largely focused on urban and peri-urban
areas.
At the completion of the pilot project, affordable energy efficiency technologies for low-income housing will
have been tested within a precinct of around 2,000 homes in one of the sub-projects within the N2 Gateway
Programme, managed by Thubelisha Homes on behalf of the National Department of Housing (South Africa).
The actual number of homes that will be converted to energy efficient dwellings will depend on the overall cost
per house and the available funding. This project will inform the rolling out of energy efficient low-income
housing in the rest of South Africa.
It is also planned that the experiences through this project and the recommendations and conclusions of this
project will inform the South African regulatory framework in the formation of standards and policies to be
incorporated in the National Building Regulations and other relevant legislation.
The ultimate beneficiaries of the project are poor families living in low-income government subsidised houses.
Their quality of life will, as a result of the project, be improved through improved health and reduced
expenditure on energy for heating of homes during the winter months.
Poor households are spending up to 30% of income on energy sources whilst their affluent counterparts spend
only around 2% of income on energy. Poor quality homes contribute to this high expenditure, since it means
that much of the energy used for heating is wasted. Thus poor thermal performance of low-income housing
contributes to the proportionately greater financial burden of energy on the poor. Energy security for poor
households can help reduce poverty, increase livelihoods and improve living standards.
The project seeks to fully integrate the aspect of energy efficiency within the subsidised housing sector, which
is a national housing subsidy scheme of the South African government. Subsidised housing is specifically
aimed at low-income groups throughout the country, and largely focused on urban and peri-urban areas.
The Danida funding is earmarked to develop and pilot affordable energy efficient low-income house designs
and materials with the view to ultimately contribute to poverty reduction in two ways:
(i) it will reduce the cost of heating houses in the winter season, and
(ii) it will improve the indoor air quality by reducing the use of non-renewable source of energy (e.g.
fire wood) and hence improve the health of the poor families.
In terms of the South Africa-Danida Cooperation Agreement, the project’s immediate objectives are:
1 Awareness of regulators, local authorities, private sector, practitioners and low-income consumers.
2 Adequate information sharing and dissemination.
3 Affordable technologies developed i.t.o. intervention approaches, selected, piloted, evaluated in low-
income houses and prepared for large-scale dissemination.
4 Inform, through lessons learnt, the Regulatory Framework for energy efficient low-income houses.

vi
Numerous housing projects in South Africa already exist where energy efficiency forms the core of all building,
development and sustainability considerations. The best practice from projects such as the Lyndoch Project
where 12 subsidised low-income houses were fitted with solar water heaters, north orientation, compact
fluorescent lights, adobe brick construction, on-site sanitation system, an on-site biogas digestor, water
recycling, thermal efficient design in the buildings on-site, etc., and the Atlantis (Witsands) Project where 400
energy efficient low-income houses (with data loggers) were constructed. In this project all possible energy-
efficient solutions in the low-income housing designs were used as far as the housing subsidy parameters
allowed.
While this Project Document (rewritten 2008) deals with energy efficiency in low-income housing in its
broadest sense, the outputs related to the immediate objectives as stated in the SA-Danida Co-operation
Agreement, were adapted to focus on the N2 Gateway Housing Development Project.
The N2 Gateway Energy Efficiency Housing Development Project is on a much larger scale than any previous
initiated energy efficient schemes in South Africa.
Although this housing development project consists of new dwellings, the full gambit of energy efficiency
measures to ensure a 100% compliancy is not possible: the project planning has advanced beyond a pure
greenfields project as the plans have already been drawn up and approved; the bulk infrastructure is in place
and the implementation consortium is at the ready to commence. However, in terms of the Breaking New
Ground strategy, the construction directives include all the general energy efficiency measures such as
ceilings, plastered walls, etc. For the present project, the focus will be on the necessary components to
accommodate a solar water heating system, e.g. gutters, will be included in line with critical technical
components.
Although energy efficient measures such as on-site sanitation, biogas digestion, water recycling, rainwater
harvesting, etc. will not form the core of the pilot, these additional energy efficient measures will be feasibility
appraised through participatory communication processes with the community and sector experts.
This Project Document (rewritten 2008) builds on a previous Project Document: Energy Efficient Housing in
the Low-income Housing Sector in South Africa (2003) and includes in Annex a comprehensive overview of
the tenets of energy efficiency in low-income housing through practical and user-friendly descriptions of the
following components:

• The Policy and Regulatory Environment

• Sustainability and Energy Efficiency Priorities
• Finance Mechanisms
• Appropriate Energy Efficient Technologies
• Community Engagement (Communication) as a critical component of sustainable development
• A Process to follow for energy efficient housing
• Recommendations
• Suppliers, Products and Costs: Solar Water Heating.
The project document is the culmination of applied research conducted by agencies, organisations and
individuals supplemented with outputs of interviews with field experts and interpretations of regulations, laws
and government strategies. Credit is given for all work referred to and used in the text (see Bibliography and
References in Annex). The document has been prepared with the assistance of Minnie Hildebrand, Research
& Management Agency, Johannesburg.

vii
2. OVERALL APPROACH: N2 GATEWAY HOUSING DEVELOPMENT AS
THE FOCAL POINT
The overall approach will be that the N2 Gateway Housing Development will be used as focal point providing
specific experiences that broadly will be similar to other housing developments regardless of the type of
system involved. The pilot project forms part of the wider N2 Gateway Project, with the new and renewable
energy systems helping to achieve other objectives such as affordable warmth, good asset management and
sustainable development. And the pilot project will form the basis for dissemination to other housing
developments and to the policy and regulatory framework levels.
While Thubelisha Homes, as the Implementation Agency that implements projects on behalf of the National
Department of Housing will be responsible for the general implementation of the technical components of the
pilot project, the NDoH will take responsibilities for the “soft issues” surrounding any pilot project, which
includes, the research and documentation such as the Lessons Learnt Report and the dissemination thereof.
The sections below address the responsibilities for Key Activities and Outputs of both the IA and the NDoH.
The use of renewable energy technology should always be combined with improving energy efficiency. The
carbon reductions achieved from energy efficiency measures will generally be greater than those from
renewables. In addition, it is important to reduce energy demand in the dwellings to a level where renewables
can make a significant contribution.
Reiterating the purpose of the Thubelisha Homes N2 Gateway Energy Efficiency Pilot Project objective being
to install solar water heaters (SWH) systems in approximately 2,000 dwellings and ensure that within
budgetary constraints as many energy efficiency components are present in the construction of the dwelling as
the present plans provided for. This pilot project is not a pure greenfields project as the plans have been drawn
up and passed, the bulk infrastructure is in place and the construction teams are on site. Thus, there are
spatial and construction energy efficiency measures that cannot be included in the pilot project.
However, as Thubelisha Homes’ building specifications incorporate the bulk of the construction energy
efficiency measures, such as ceilings, plastered walls, etc. the dwellings will comply to certain standards.
Where, for instance, the SWH system requires additional construction components, such as ensuring that the
roof can hold the weight of the SWH system as well as a full tank of water or guttering for the water overflow,
the financial aspects of these components will be considered and costed as part of the SWH installation. As
the donor funding from Danida is for a specific amount, the number of dwellings that will be fitted with SWH
and other supporting construction components may have to be determined by the overall cost of installation.

3. OBJECTIVES & OUTPUTS

The outpus have been re-defined for each of the four immediate objectives:
Outputs related to Immediate Objective 3 (Application of EE technologies in the N2 Gateway housing
project):
1. Approximately 2,000 Solar Water Heaters installed
2. O&M procedures implemented for communities
3. Energy efficiency monitoring system implemented
Outputs Related to Immediate Objective 1 (Awareness for N2 Gateway communities):
4. Communications and awareness strategy and materials developed
5. Community Engagement / Awareness / Training campaigns implemented
6. Lessons learnt document
Outputs Related to Immediate Objective 2 and 4 (Dissemination and Policy Influencing):
7. Dissemination of lessons learned document
viii
 8. The lessons-learnt document to inform the Regulatory Framework.

4. ACTIVITIES
The following key activities will be undertaken for each output during project implementation and finalisation:
Pre-Project Planning
1. Completion and endorsement of the Project Document (rewritten 2008) by stakeholders such as Danida,
the NDoH and Thubelisha Homes.
2. Procure and appoint a Chief Technical Advisor (CTA)
a. Establish a Project Steering Committee: Thubelisha, Danida, NDoH and the City of Cape Town
(Energy Department)
b. Contract specialist consultants, who can estimate costs and obtain preliminary quotations for the
different outcomes stated above.
Output 1 Approximately 2,000 Solar Water Heaters installed – lead by IA
1. The Chief Technical Advisor, in conjunction with the Thubelisha Homes’ Project Management Team,
will cconsider the choice of appropriate technologies taking all the existing components of the project
into consideration being: that the project consists of new dwellings, that the project planning (plans
and approvals) is in an advanced stage – except for the energy efficiency components, that the
rudimentary project budgets have already been completed, and that the contracting of the construction
component has been done.
2. The Chief Technical Advisor will develop an Implementation Plan, including implementation budgets
and reporting to the appropriate structures.
3. To inform the Energy Efficiency Implementation Plan, the CTA will identify the current and projected
energy demand. Evaluate space heating, water heating and electric power requirements (for
appliances and lighting). Estimate the contributions that may be made by renewable energy, Identify
the fuel use and the carbon savings expected from renewable energy technologies, Compare the
carbon emissions reductions achievable from the various renewable energy technology options, taking
into account the type of fuel or energy to be offset, Consider affordabilities, evaluate residents’
benefits and identify alternative funding methods to assist the indigent so that they are not further
burdened. Consider finance mechanisms described in Annex, Consider the different Community
Engagement (Communications) options and contract suitable consultant or NGOs to develop the
materials and strategy.
4. Partnerships formed, technologies and performance criteria appraised
5. Appropriate technologies, designs, and products identified, assessed and the suite of interventions
and technologies selected for implementation. Feasibility studies undertaken for each assessed
technology.
6. Technologies selected, procured and installed
Output 2 O&M Manual – lead by IA
1. Draft O&M Manual – Thubelisha Homes, through the CTA to draft the manual
2. Hand over the O&M Manual to the Energy Efficiency Department of the City of Cape Town
Output 3 Energy efficiency monitoring system implemented - lead by NDoH
1. Draft a monitoring framework
2. Establish a monitoring team
3. Energy efficiency monitoring system implemented for 12 months post installation:
a. technical efficacy and
b. electricity consumption by low-income households
ix
Output 4 Communications and awareness strategy and materials developed – lead by IA
1. The IA to develop communications and awareness strategy and materials
2. Two-prong strategy to be developed IA:
a. Technical information developed and disseminated in printed form
b. Social advocacy campaign including community meetings, advice service desk and printed
material to be distributed.
Output 5 Community Engagement / Awareness campaigns implemented – lead by IA
1. Embark on an education and awareness campaign: community meetings, advice service desk and
printed material to be distributed
2. The Lessons Learnt research and documentation has to include this output from inception.
Output 6 Lessons learnt document - lead by NDoH
1. Draft document as an on-going activity from inception of the project to 12 months post installation of
the solar technology
2. Finalisation of Lessons Learnt Report
Output 7 Dissemination of lessons learned document – lead by NDoH
1. Presentation of Final Lessons Learnt Report to Project Steering Committee through 1-day workshop
which is open to the Press
2. Dissemination to all key stakeholders
Output 8 The lessons-learnt document to inform the Regulatory Framework – lead by NDoH
1. Ensuring that the Lessons Learnt Report is placed on the national policy agenda through internal
NDoH procedures

x
5. BUDGET
IMPLEMENTATION OF SOLAR HEATERS ON THE N2 GATEWAY, WESTERN CAPE
1500 units installed
Pre-Project Planning
Project Document kr 164,891
Chief Technical Advisor kr 974,310
Pre-Project Direct Expenses - travel and subsistence kr 38,972
Specialist Consultants (appropriate technologies and financial projections) kr 324,770
Output 1 Solar Water Heaters
Solar Water Heaters installed kr 9,743,100
Output 2 O&M Manual – lead by IA
Draft O&M Manual kr 129,908
Output 3 Energy efficiency monitoring system implemented - lead by NDoH
1. Draft a monitoring framework kr 38,972
1. Establish a monitoring team kr 29,229
Energy efficiency monitoring system implemented for 12 months kr 233,834
Output 4 Communications and awareness strategy and materials developed – lead by IA
Develop communications and awareness strategy and materials kr 193,563
[design and printing of communication materials] kr 77,945
a. Technical information developed and disseminated in printed form kr 178,624
[printing of technical information] kr 77,945
b. Social advocacy campaign including community meetings, advice service desk and printed
material to be distributed. kr 187,068
Output 5 Community Engagement / Awareness campaigns implemented – lead by IA
Education and awareness campaign: community meetings, advice service desk and printed material to
be distributed kr 207,853
Output 6 Lessons learnt document - lead by NDoH
Draft document as an on-going activity from inception of the project to 12 months
1. Finalisation of Lessons Learnt Report kr 116,917
Dissemination of lessons learned document – lead by NDoH
1. Presentation of Final Lessons Learnt Report to Project Steering Committee through1-day
workshop which is open to the Press kr 110,422
2. Dissemination to all key stakeholders kr 9,743
Output 8 The lessons-learnt document to inform the Regulatory Framework – lead by NDoH
Ensuring that the Lessons Learnt Report is placed on the national policy agenda through internal
NDoH procedures
TOTAL BUDGET (EXCL VAT) FOR IMPLEMENTATION AGENCY (THUBELISHA) COMPONENTS kr 12,298,948

Thubelisha Homes - Implementation Agents - Administration fee of 5% of overall costs kr 614,947

TOTAL BUDGET (EXCL VAT) kr 12,913,895
TOTAL BUDGET (EXCL VAT) FOR BOTH IMPLEMENTAITON AGENT AND NDoH COMPONENTS kr 13,453,013
NOTES: 1. GREYED OUT AREAS ARE ACTIVITIES THAT THE NATIONAL DEPARTMENT OF HOUSING WOULD TAKE
RESPONSIBILITIES FOR - THESE COSTS ARE NOT INCLUDED IN THE FINAL BUDGET AND IS REFLECTED FOR
INFORMATION PURPOSES ONLY.
2. EXCHANGE RATE USED = 0.64954
xi
6. EXECUTIVE SUMMARY
South Africa and Denmark have co--operated on and the available funding. This pilot project will
environmental initiatives since 1995. The co- inform the rolling out of energy efficient low-income
operation covered many of the main environmental housing in the rest of South Africa.
concerns related to South Africa including
It is also envisaged that the experiences through
sustainable energy. Since August 2001, extensive
this pilot project and the recommendations and
consultations have been held with the South
conclusions of this document will inform the South
African Government on the future direction of
African regulatory framework in the formation of
environmental cooperation. It had been decided to
standards and policies to be incorporated in the
prioritise future environmental co-operation on
National Building Regulations and other relevant
consolidating and strengthening the co-operation
legislation.
initiatives within Urban Environmental
Management (UEM) and energy. The ultimate beneficiaries of this pilot project are
poor families living in low-income government
The South African National Department of Housing
subsidised houses. Their quality of life will, as a
received a funding commitment from the Danish
result of the project, be improved through improved
International Assistance (Danida) environmental
health and reduced expenditure on energy for
programme for a project on the Mainstreaming of
heating of homes during the winter months.
Energy Efficiency in Low-income Housing.
Poor households are said to be spending up to
The project seeks to fully integrate the aspect of
30% of income on energy sources whilst their
energy efficiency within the subsidised housing
affluent counterparts spend only 2% of income on
sector, which is a national housing subsidy
energy. Poor quality homes contribute to this high
scheme of the South African government.
expenditure, since it means that much of the
Subsidised housing is specifically aimed at low-
energy used for heating is wasted. Thus poor
income groups throughout the country, and largely
thermal performance of low-income housing
focused on urban and peri-urban areas.
contributes to the proportionately greater financial
In terms of the South Africa-Danida Co-operation burden of energy on the poor. Energy security for
Agreement, the project’s immediate objectives are: poor households can help reduce poverty,
1. Awareness of regulators, local authorities, increase livelihoods and improve living standards.
private sector, practitioners and low-
This document is the culmination of applied
income consumers.
research conducted by other agencies,
2. Adequate information sharing and
organisations and individuals with supplementation
dissemination.
from the author in terms of the outputs of
3. Affordable technologies developed i.t.o.
interviews, commissioned sections that were
intervention approaches, selected, piloted,
dependent on field experts and interpretations of
evaluated in low-income houses and
the regulations, laws and government strategies.
prepared for large-scale dissemination.
The author endeavoured to give credit for all work
4. Inform, through lessons learnt, the referred to and used in the text and apologises for
Regulatory Framework for energy efficient any eventualities. All authors are acknowledged
low-income houses and noted in the Bibliography and References.
At the completion of the pilot project, affordable Shortcomings in the document had been pointed
energy efficiency technologies for low-income out, such as the lack of detailed success stories
housing will have been tested within a precinct of and case studies pertaining to communities where
3,900 homes in one of the sub-projects within the energy efficiency housing works to the benefit of
N2 Gateway Programme, managed by Thubelisha the poor. These omissions are currently being
Homes on behalf of the National Department of addressed and will be annexed at a later stage.
Housing (South Africa). The actual number of
homes that will be converted to energy efficient
dwellings will depend on the overall cost per house

xii
7. PROJECT DOCUMENT (REWRITTEN 2008)
This project document builds on a previous version
done in 2003, which covers a much broader scope
as a greenfields programme.
The project brief and Scope of Work for the Project
Document (Rewritten 2008) states that the
document has to be practical and user-friendly with
a specific focus on the feasibility and sustainability
of solar water heating systems.
The Scope of Work furthermore stipulates the
exploration of energy efficient measures spanning
the ecological home environment in integrated
sustainable settlements pertaining to financial,
technical environmental and social benefits of
appropriate technologies and approaches.
The Scope of Work determined that the rewrite
hinges on existing research – as a literature review
of national and international best practice – and
interviews with involved stakeholders.
The Scope of Work furthermore identified the N2
Gateway Project as the focus point for piloting
energy efficient measures in approximately 3,000
existing dwellings.
The research team did a very comprehensive
literature scan – reflected in the Bibliography and
References – as well as 19 focused interviews, of
which 16 were face-to-face interviews and 3 were
done telephonically.
This Project Document (Rewritten 2008) is thus
the culmination of applied research conducted
by other agencies and organisations and
reflected as examples of best practice. All
authors are acknowledged and noted in the
Bibliography and References.
The duration of the contract between Research &
Management Agency and Thubelisha Homes was
one month.
7.1 National Socio-Economic
Context
The Use of Energy Sources
Poor households are said to be spending up to
30% of income on energy sources whilst their
affluent counterparts spend only 2% of income on
energy. Poor quality homes contribute to this high
expenditure, since it means that much of the
energy used for heating is wasted. Thus poor
thermal performance of low-income housing
contributes to the proportionately greater financial
burden of energy on the poor. Energy security for
poor households can help reduce poverty,
increase livelihoods and improve living standards.
The energy used in low-income households is
primarily for cooking. In census 2001 it was
reported that 50% of South Africans use electricity
for cooking, 26% use wood, 18% use illuminating
paraffin, 3% use coal, 2% use LPG and 1% use
animal dung.1 For poor people access to fuel is
treated as a matter of survival and not a luxury.
Poverty determines energy use, thus, one’s energy
portfolio is dependent on one’s income levels.
Erratic and/or unreliable income flows negatively
affects energy choices. Most of the time, energy
for the poor is all about survival. No wood means
no cooking and no cooking means no food.
Although energy for heating – the house or water –
is secondary to cooking, the pattern is similar. In
the current N2 Gateway Project, the low-income
houses do not have any hot water facility, and the
buildings are not energy efficient. The grid
electricity provided in the project is insufficient to
power a geyser or appliances that demands more
than the 20 Amp and 50 kilowatt-hours (kWh) of
free monthly electricity allocation. (Although users
have access to a basic quantity of 50 KWh per
household per month in terms of the policy, users
pay the normal tariff for any consumption
exceeding 50 KWh per month.)
It is thus apparent that contrary to initial
expectations, grid electrification will not satisfy all
energy needs of low-income households. The
exorbitant amounts associated with electrical
appliances, their lack of multi-functioning and the
relatively high costs for thermal end-uses like
cooking and space heating are some obvious
constraints to the greater application of electricity.
Through numerous policies, it is clear that the
government is starting to view the environment and
energy efficiency as a priority focus area whereas
poor community people do not think about it in
1Minister Lulu Xingwana, Dept Minerals and Energy,
Keynote Address at the Cooking Roundtable, November
2005.
13
their survivalist state. This disjoint of priorities
means that the government will need to embark on
a very concerted communication, awareness and
education campaign, specifically focused on
reaching the poor. This communication campaign
has to include a component whereby inhabitants
are educated in the social norms demanded by
living in structured environments as opposed to
informal settlements, e.g. disposal of waste into
sewerage pipes, cooking on open fires inside the
home, keeping the glazing in windows intact,
avoiding unnecessary draughts in winter, etc.
“The results of neglecting sustainable energy
services in low-income housing is highlighted by
the continuing social, economic and environmental
poverty of beneficiaries of housing delivered under
the National Housing Programme. This situation is
fully acknowledged by the Department of Housing
which is increasingly committed to a vision of
Sustainable Human Settlements, yet is constrained
by a lack of funding, low awareness of sustainable
energy interventions within the broader
marketplace, and negligible support from the South
African energy sector.
From the energy perspective, South Africa is
moving into a period of crisis in energy supply, due
to a period of sustained growth in the economy.
Interventions to reduce demand for grid electricity
will both assist in mitigating the impact of supply
side constraints, and substitute the use of
greenhouse gas intensive coal generated power
with energy efficiency and renewable energy
resources.”2
South Africa is heavily reliant on fossil fuels,
amongst others coal, for its energy needs. While
the country is well endowed with alternative energy
resources these has remained largely untapped.
The country has very favourable exposure to
sunshine all year round with the daily average
global solar radiation level in South Africa ranging
between 4.5 and 6.4 kWh/m2 compared to 2.5
kWh/m2 in Europe. This makes solar energy an
attractive option as a primary source of energy
especially in the low-income groups. Achieving a
sustainable level of energy security for low-income
2 Tyler, Emily, Creating a National Financial Facility for
Sustainable Energy Upgrades in Low-income Housing in
South Africa, A Concept Proposal by SouthSouthNorth (SSN)
supported by the Renewable Energy and Energy Efficiency
Partnership (REEEP), 2007
households can play a central role in poverty
reduction, fostering improved livelihoods and
quality of life.
The Role of the Private Sector
There is no tradition in South Africa to focus on
energy efficiency in relation to the low-income
housing sector. Poor families register for low-
income houses with Municipalities and as the lists
are long, it is time, efficiency and profitability rather
than quality, which are the dominant features of
the low-income housing market.
Most community-based projects focusing on
energy efficiency are donor and not market driven
and they deal with the formal sector in the
development of low-income solutions to improved
in-door climate.
The private sector has thusfar had little or no
reason to consider the low-income housing sectors
as a profitable market. The association of
manufacturers of insulation (TIASA) has
approximately 30 members who focus on the
commercial and the high-income housing market.
However, a few members have interacted on
projects in energy efficiency in the low-income
sector of the housing market
The low-income families do improve their houses
and a market for construction materials exists in
the low-income housing sector. But this demand is
not directed towards improved energy-efficiency
for the following reasons:
1. The poor families are generally not aware
of the potential benefits of energy efficient
housing;
2. The manufacturers and distributors do not
market their products vis-à-vis the low-
income households because of the low
purchasing power;
3. Due to relatively high costs associated
with low sales and economies of scale in
production, the investments in energy
efficiency has a long pay back period.
Recent calculations show that low-income
investments in energy efficient housing
have a pay back period of 5-10 years.
14
8. INSTITUTIONAL FRAMEWORK
8.1 Public Sector Institutions
This section provides a brief overview of some of
the key existing public sector institutions that are of
greatest relevance to the development and
concretising of an ethos of energy efficiency in
South Africa and for Danida’s on-going
involvement in this sector.
8.1.1 The National Department of
Housing
NDoH main function is to determine policy
including national norms and standards in respect
of housing development. The Department’s
responsibilities amongst others include:
1. Establishment of a national institutional
and funding framework for housing
development.
2. Negotiations for the national
apportionment of the state budget for
housing development.
3. Obtaining funds for land acquisition,
infrastructure development, housing
provision and end user finance.
4. Setting broad national housing delivery
goals.
5. Evaluating the performance of the housing
sector against set goals and equitableness
and effectiveness requirements.
6. Creating an environment conducive to
enabling provincial and local government
to achieve their delivery goals in respect of
housing development.
7. Drafting and Publishing of the National
Housing Code.
The National Housing Code provides National
Norms and Standards in Respect of Permanent
Residential Structures that have to be adhered to
by all beneficiaries of the housing subsidy
programme. The primary thrust of the Code is
around certain aspects of human health and
safety. Provincial Departments of Housing
administer and enforce these norms as and when
housing subsidy applications are approved and
houses constructed.
8.1.2 National Home Builders
Registration Council (NHBRC)
The SABS, the Architects Council of South Africa
and the South African Association of Consulting
Engineers contributed to the formation of the
NHBRC. The organisation ensures that
householders are protected under the ‘Housing
Consumers Protection Measures Act’. The NHBRC
has produced a homebuilder’s manual.
8.1.3 Department of Trade and
Industry
The Department of Trade and Industry (DTI) is
responsible for making amendments or additions
to the National Building Regulations (NBR), which
must be adhered to by all in the housing sector. It
consults the SABS for determining the
appropriateness of the regulations, and for the
development of codes of practice, where
appropriate. This code is said to be revised every
four years to allow incorporation of new thinking
and innovation in the industry.
8.1.4 Dept Environmental Affairs &
Tourism
The National Department of Environmental Affairs
and Tourism (DEAT) is responsible for ensuring
compliance by all sectors to the environmental
protection and conservation. Of importance the
department is tasked with the responsibility of
ensuring adherence to global protocols on the
environment in which South Africa is a signatory.
8.1.5 Department of Minerals and
Energy
DME is charged with the responsibility of
reshaping governance principles and changing
citizens’ attitudes and towards the use and
importance of national energy resources. The
department has been charged with ensuring the
promotion of access for all to affordable and
sustainable energy services. It should also ensure
a balanced use of natural energy resources with
environmental considerations.
15
The following graphs3 depict the Roles and Responsibilities pertaining to the Regulatory

Framework and Implementation obligations of the

different energy efficient stakeholders:
3Energy Efficiency Strategy of the Republic of South Africa,
Department of Minerals and Energy, March 2005
16
8.1.6 Multi-Sectoral Structures
There are a number of inter-governmental
coordination structures also at different levels.
Some of them are in a form of thematic clusters
and some are functional in nature. In line with this
thinking of corporative governance, NDoH
facilitated the establishment of an Environmentally
Sound Low-income Housing Task Team
(ESLCHTT) in 1998.
This is an inter-departmental team with
representatives from five departments: Housing
(DoH), Health (DH), Minerals and Energy (DME),
Water Affairs and Forestry (DWAF), and
Environmental Affairs and Tourism (DEAT). The
scope of issues to be tackled by the team includes:
ECONOMI
C their power to perform their duties in
SOCIO-
CULTURAL
POLITICAL
HOUSING
PRODUCTION/
HABITATION
TECHNO-
LOGICAL
BIO-
PHYSICAL
Figure 1: Inter-systems linkage of housing production
and habitation - Source: Adapted from Irurah et al
1. Promotion of environmentally sound
housing initiatives
2. Developing national policy on
environmentally efficient low cost housing
3. Encouraging environmentally sound
practices in the housing sector.
This inter-departmental team is responsible for the
oversight of synergies to ensure the execution of
the government’s policies, strategies and plans.
There is a serious disjoint in the different policies,
strategies, guidelines and plans from the different
Departments. It is crucial that this inter-
departmental team addresses this.
The fact that the energy efficiency environment is
in an immature state whilst policies, plans and
strategies have been accepted and formalised
perhaps points to a critical issue in government,
being a lack of implementation capacity. The
political will had been expressed as noted in the
section on Regulatory Frameworks and the roles
and responsibilities noted in this section.
8.1.7 Provinces and Municipalities
Provinces are mandated to promote and facilitate
the provision of adequate housing within the
framework of national housing policy. Every
provincial government is tasked to amongst others:
1. It can assume the role of developer
2. Determine provincial policy in respect of
housing development;
3. Coordinate housing development in the
province and determine provincial housing
development priorities in accordance with
the national housing policy;
4. Take all necessary steps to support
and strengthen the capacity of
municipalities to effectively exercise
respect to housing developments.
Provinces can determine their own
provincial policy and thus they do have
some autonomy with regard to certain
building specifications.
Local Government is mandated to
ensure that the inhabitants in their
areas of jurisdiction have access to
adequate housing on a progressive
basis; that conditions not conducive to
the health and safety of the inhabitants
in the municipal areas of jurisdiction
are prevented and removed; that
services are provided in manner which
is economically efficient; and the
creation and maintenance of public
environment conducive to housing
development which is financially and
socially viable.
Local government is responsible for the
enforcement of all NBR performance criteria,
outside of and including those cited in the
guidelines and standards manuals. The capacity of
municipalities in enforcing the NBR varies from
adequate to inadequate.
Over and above housing, municipalities must
ensure that its citizens progressively have healthy
and safe conditions prevailing within their areas of
jurisdiction, and that there is economically efficient
provision of other services such as water,
sanitation, electricity, roads, storm water drainage
and transport.
17
9. REGULATORY FRAMEWORK
9.1 Legislation and Policies
9.1.1 Breaking New Ground
In September, 2004, the NDoH launched its new
housing policy: “Breaking New Ground”. This
policy brings a radical shift from the “quantity over
quality” mindset entrenched in Reconstruction and
Development Plan (RDP) housing delivery, and
points to participative, multi-dimensional
approaches which allow people to become part of
sustainable human settlements, rather than simply
recipients of an RDP house. In this policy, the
subsidy recipient market has expanded as well,
allowing those who are too well off to receive a
subsidy – but who cannot afford a down payment
on a home – to access housing as well.
Guidelines and regulations play an important role
in facilitating this ‘Breaking New Ground’ policy
and encouraging ecological design in building
interventions. Without legislation, the building
sector would be highly unlikely to initiate and
achieve efficiency goals.
The government is currently examining ways of
incorporating energy efficiency into National
Building Standards. The South African Bureau of
Standards (SABS) is also developing energy
efficiency standards for residential and commercial
buildings. Ultimately, energy efficiency standards
will become part of the Building Code of South
Africa.4
The new (2007) revised National Norms and
Standards for the Construction of Stand-Alone
Residential Dwellings Financed through National
Housing Programmes, inter alia, include the
following provisions pertaining to energy efficiency
in low-income housing:
9.1.2 The Constitution of the Republic
of South Africa (Act 108 of 1996)
The Constitution is the supreme law of the country.
It contains the Bill of Rights that articulates the
basic rights of all South Africans. Section 24 of the
Constitution addresses environmental quality and
4 Making the Case for Ecological Design in South Africa, The
Sustainability Institute, Lyndoch, South Africa, 2007
ecological integrity. Section 26 of the Constitution
states that everyone has the right to have access
to adequate housing. The State is required to take
reasonable legislative and other measures, within
its available resources to achieve the progressive
realisation of this right (section 26(2)). On the
environment front everyone has these rights:
To an environment that is not harmful to their
health and well-being; and
1. to a protected environment, for the benefit of
present and future generations, through
reasonable legislative and other measures
that:
(i) prevent pollution and ecological
degradation;
(ii) promote conservation; and
(iii) secure ecologically sustainable
development and use of natural
resources while promoting
justifiable economic and social
development.
The Constitution clearly stipulates that South
Africans should all have access to housing:
especially the poor. However, no mention is made
regarding the quality of the houses themselves.
The quality issue is later covered in the
subsequent policy documents i.e. the Urban
Development Strategy
9.1.3 The RDP
Since 1994, social and economic policies have
largely been informed by two strategies, the White
Paper on Reconstruction and Development (1994)
and the macro-economic strategy Growth,
employment and Redistribution (GEAR). The
Reconstruction and Development Programme
(RDP) identified housing as a major intervention
for meeting the basic needs of poor South
Africans. RDP is also a means to achieving the
goals of poverty eradication and social
development expressed in the macro-economic
policy of Growth, Employment and Redistribution
(GEAR).
The RDP base document notes that although
energy is a basic need, the vast majority of South
Africans depend on inferior and expensive fuels. A
need was realised for an energy policy that could
18
concentrate on the provision of energy services to
meet the basic needs of the poor, stimulate
productive capacity and urgently meet the energy
needs of community services.
The RDP office was later disbanded and NDoH
was tasked with the responsibility of taking over
the finalisation of the Urban Development Strategy
(UDS), which is aimed at ensuring the future
sustainable development of cities and towns.
9.1.4 The Housing Act of 1997
The housing sector is regulated predominately by
the Housing Act 1997, which compels all spheres
of government to give priority to the needs of the
poor in respect of housing development. It
mandates National, Provincial and local spheres of
government to ensure that poor segments of the
society access housing development. According to
the Act, the government must:
1. Provide housing that is economically,
fiscally, socially, financially affordable and
sustainable;
2. Ensure the development and maintenance
of socially and economically viable
communities and of safe and healthy living
conditions;
3. And to take due cognisance of the impact
of housing on the environment.
The Act requires that all three levels of housing
governance prioritise the housing needs of the
poor. The South African Housing Act seeks to
incorporate all the requirements of adequate
shelter as defined in the Habitat Agenda. Although
‘adequate housing’ is neither defined in the
Constitution nor in the Housing Act, the latter
defines ‘housing development’ as ‘providing
adequate protection against all the elements’. This
objective has largely been unmet, considering the
thermal inefficiency of housing structures in South
Africa.
Lastly, the Act insists that all counterpart
departments promote socially and economically
sustainable housing developments, including
consideration of health and safety issues.
Contained in the Act is a provision for the NDoH to
publish a National Housing Code.
9.1.5 White Paper on Energy (1998)
The legislative mandate on energy efficiency is
contained in the White Paper on Energy (1998)
wherein it is stated that government will promote
access to basic energy services for poor
households, in order to ameliorate the negative
health impacts arising from the use of certain fuels.
Also that government will pursue energy security
by encouraging a diversity of both supply sources
and primary energy carriers. The Paper states that
government commits itself to the promotion of
energy efficiency in households. Government
undertook to create energy efficiency
consciousness and intends to establish energy
efficiency norms and standards and voluntary
guidelines for the thermal performance in housing.
South Africa is also a signatory of Habitat Agenda,
which emphasises on the need to develop
sustainable and environmentally efficient human
settlements. The Agenda promotes
environmentally sound housing with particular
emphasis on energy efficiency, water efficiency
and greening of urban environments.
The White Paper identifies government’s short and
medium term goals. Energy efficiency is listed
under medium term priorities and it is said that:
1. Government intends creating appropriate
institutional capacity to implement energy
efficient programmes;
2. Energy efficiency will be promoted in all
sectors of the economy.
Since 1998 when the White Paper on Energy was
tabled, the government neither had created the
appropriate institutional capacity to implement
energy efficient programmes, nor had they set
about to actively promote energy efficiency in any
sector of the market: consumers, designers,
architects, urban planners, etc.
9.1.6 National Building Regulations
and Building Standards (Act 103
of 1977)
These standards and guidelines reproduce some
of the National Building Regulations (NBR). The
primary concerns of the NBR are certain aspects
of human health and safety; it does not consider
efficiency issues in the performance criteria. The
national Department of Trade and Industry
determine these regulations that set out
19
performance standards, which are legally
enforceable. The South African Bureau of
Standards (SABS) code of practice is not legally
enforceable but does provide guidance on how to
achieve performance standards set out by the
NBR. The SABS the guidelines also make
provision for unconventional approaches which
can be certified through the awarding of an
Agrément Certificate.
The National Building Regulations are reviewed
every 4 years.
9.1.7 ‘The Red Book’ / ‘Guidelines for
Human Settlement Planning &
Design’
The Council for Scientific and Industrial Research
(CSIR) was contracted in 1995 by the then
National Housing Board to produce the ‘Red Book’.
The CSIR Division of Building and Construction
Technology managed this project. Great emphasis
is placed on spatial planning issues and
engineering and municipal services. The
guidelines include energy considerations,
specifically thermally-efficient housing design and
the use of renewable energy.
9.1.8 The Housing Code
The Housing Code accommodates all national
policy relating to housing, and the National Norms
and Standards for housing. The Urban Vision
expressed in the Housing Code explicitly calls for
environmentally sustainable lifestyles that
incorporate renewable resources and considers
intra- and inter-generational environmental equity.
National Norms and Standards in the National
Code apply to subsidised housing.
Where houses are constructed by builders
registered with the “National Home Builders
Registration Council’ the additional set of
Guidelines and Standards, National Building
Regulations determined by local governments and
‘The Red Book’ or ‘Guidelines for Human
Settlement Planning and Design’ (CSIR) will apply.
It must be noted that although the Housing Code
stipulates that the Guidelines are mandatory, the
Department of Housing has declared them not
legally enforceable.
9.1.9 National Technical Norms and
Standards
With effect from 1 April 2007 the new draft National
Norms and Standards replaces the Norms and
Standards contained in the National Housing Code
of 2000. The minimum National Technical Norms
and Standards apply to the creation of serviced
residential stands and houses to be constructed
through the application of the National Housing
Programme. All residential developments that will
be undertaken through the finance provided in
terms of the National Housing Programmes must
comply.
In terms of the provisions of the Housing Act, 1997
which came into effect on 1 April 1998, “housing
development” means:
”the establishment and maintenance of habitable,
stable and sustainable public and private
residential environments to ensure viable
households and communities in areas allowing
convenient access to economic opportunities, and
to health, educational and social amenities in
which all citizens and permanent residents of the
Republic will, on a progressive basis, have access
a. To permanent residential structures with
secure tenure, ensuring internal and
external privacy and providing adequate
protection against the elements; and
b. To potable water, adequate sanitary
facilities and domestic energy supply”.
Against this background, the Minister of Housing
introduced the revised National Norms and
Standards, including prescripts regarding the
housing typologies that will be financed through
National Housing Programmes in future.
The National Norms and Standards contain all the
technical specification for a basic subsidy house.
Section 10.1 addresses the components dealt with
in the new National Norms and Standards.
9.1.10 Energy Efficiency Strategy5
In March 2005, the first Energy Efficiency Strategy
for South Africa was adopted by Parliament. It is
the first consolidated Governmental document
geared towards the development and
5 Energy Efficiency Strategy of the Republic of South Africa
(March 2005)
20
implementation of energy efficiency practices in
this country. The Strategy takes its mandate from
the White Paper on Energy Policy, published in
1998, and links energy sector development with
national socio-economic development plans as
well as being in line with other Government
departmental initiatives.
In addition, it provides clear and practical
guidelines for the implementation of efficient
practices within the economy, including the setting
of governance structures for activity development,
promotion and coordination. The Strategy allows
for the immediate implementation of low-income
and no-cost interventions, as well as those higher-
cost measures with short payback periods. These
will be followed by medium-term and longer-term
investment opportunities in energy efficiency.
The Strategy acknowledges that there exists
significant potential for energy efficiency
improvements across all sectors of the economy
and the vision of the Strategy is to contribute
towards affordable energy for all, and to minimise
the negative effects of energy usage upon human
health and the environment. This will be achieved
by encouraging sustainable energy development
and energy use through efficient practices.
The three cornerstones of sustainable
development are embraced within the strategic
goals of the Strategy document: these being
environmental, social and economic sustainability.
The Strategy sets a national target for energy
efficiency improvement of 12% by 2015. This
target is expressed in relation to the forecast
national energy demand at that time, and therefore
allows for current expectations of economic
growth. It is accepted that this target will be
challenging, but at the same time it is considered
to be readily achievable.
Energy efficiency improvements will be achieved
largely via enabling instruments and interventions.
These will include inter alia economic and
legislative means, efficiency labels and
performance standards, energy management
activities and energy audits, as well as the
promotion of efficient practices.
The Strategy will cover all energy-using sectors
and will be implemented through Sectoral
Implementation Plans.
Systems will be put into place in order to
periodically monitor progress against the target
that will be reviewed at the end of each phase.
In order to meet the objectives of the Strategy, it is
intended that energy efficiency interventions will be
implemented through a phased approach. The
timing of the three Phases is as follows:
1. Phase 1: March 2005 to February 2008;
2. Phase 2: March 2008 to February 2011;
3. Phase 3: March 2011 to February 2015.
It is the broad intention of the Strategy that these
phases will be linked to the economic
characteristics of each activity. For example, it is
probable that a low-income intervention with a
rapid payback would be implemented during the
early stages of Phase 1.
The adoption of this Strategy by Government in
2005 clearly states its intention to embark on a
serious road to energy efficiency and the
development of sustainable settlements. It is also
clear, however, that the Strategy is not delivering
on its intentions as energy efficiency is still low on
the general housing development agenda.
9.1.11 Impact of Regulatory Framework
on N2 Gateway Project
Thubelisha Homes fulfils the function of
implementation agency and project managers of
low-income housing for the NDoH. It is first and
foremost responsible to the Minister of Housing for
the success or failure of NDoH-driven housing.
Thus, all components of the South African
Regulatory Framework impacts on the
organisation. It is difficult, however, for Thubelisha
to follow a Strategy from, for instance the
Department of Minerals and Energy, if the same
components are not included in the NDoH policies.
It is not within Thubelisha Homes’ jurisdiction to
make policies or statements pertaining to existing
policies.
However, while Thubelisha Homes does not have
the political jurisdiction to make policy, it is in a
very good position to inform the Regulatory
Framework as a whole, including influencing
energy efficiency policies and strategies.
21
10. SUSTAINABILITY & ENERGY EFFICIENCY PRIORITIES – A CASE FOR
SWH IN LOW-INCOME HOUSING
10.1 Energy Efficiency Strategy
According to the Energy Efficiency Strategy of the
Republic of South Africa (March 2005) “South
Africa is by far the largest emitter of Green House
Gasses (GHGs) in Africa and one of the most
carbon emission-intensive countries in the world,
annually emitting some 7 tonnes of carbon dioxide
per capita due to the energy intensive economy
and high dependence on coal for primary energy.
Certain energy efficiency initiatives have potential
for financial support under the CDM.
One of the fundamental steps necessary to
enable successful implementation of any
Strategy is the need to understand the barriers
confronting it, and how to overcome those.
Some traditional barriers are self-evident. In
addition to these, however, is a barrier relating to
the state of the country itself; being that energy
efficiency is seen to be a relatively low priority
when compared with other pressing national
issues such as quality of life and education.
Energy plays an integral part in the solution of
these problems, and that without clean and
affordable energy such issues will be difficult to
resolve.”6
In the light of the priorities set to address the
priorities of poverty and disease as noted in the
Energy Efficiency Strategy and to combat the
emission of GHGs, it is critical that measures are
considered that will simultaneously address these
issues. A starting point is to consider energy
efficient solar water heating systems in low-income
housing developments.
10.2 SWH: N2 Gateway Application
Thubelisha Homes is embarking on a concerted
effort to introduce energy efficiencies into all their
low-income homes. The first project of magnitude
is the N2 Gateway Project where approximately
3,000 homes will be fitted with, amongst other,
Solar Water Heating systems. This section gives
an overview of issues and costs to influence their
decision in terms of an appropriate technology.
In the 2006 Danida financed a study to do financial
6Energy Efficiency Strategy of the Republic of South Africa
March 2005
22
modelling to install Solar Water Heating (SWH)
systems in the N2 Gateway Programme. Although
the consultant’s brief changed to include the
greater Cape Town, the financial modelling done
by Agama Energy and Lereko Sustainability into
financing solar water heaters in low-income
housing is a benchmark document7.
The financial modelling was aimed at enabling the
initiative to secure necessary funds from banks,
and build the financial case that will enable the City
of Cape Town to obtain the DME Demand Side
Management (DSM) subsidy in order to make the
installation of SWH a viable and sustainable
option. The primary reason for buying a SWH
system is thought to be the long-term financial
benefits of a more predictable and cheaper hot
water energy service.
The following section extracts selected fragments
of the document to substantiate the belief that
SWH is an affordable technology option in the N2
Gateway Energy Efficiency Pilot Project. All credit
for this section goes to the authors of Modelling
and Analysis of Financial Structuring for SWH
Projects.
Hot water for domestic requirements in urban
areas, can be supplied by solar water heating
systems at a service cost to customers of between
1.2 and 3.5 c/litre (for water supplied at 45°C at
the point of use, usually the tap or shower). This
compares favourably with the cost of hot water
7 Modelling and Analysis of Financial Structuring for SWH
Projects, for Danida by Agama Energy and Lereko Energy,
April 2007
supplied by electrically operated storage water
heaters, commonly called geysers, which is
currently supplied at approximately 3 c/litre (this
value includes only the electricity component and
no capital cost). These costs are applicable for
domestic-scale SWH systems of between 100
litre/1.4 m2and 300 litre/4.2m2 of hot water
between-storage capacity and collector area.
These costs are the direct financial costs of hot
water and do not include the indirect (or external)
costs of the service. SWH systems have significant
additional benefits in terms of reduced negative
environmental impacts, increased social equity and
enhanced economic impacts (largely due to
economic risk mitigation).
In general, the service costs for solar heated water
are primarily dependent on the mode of
implementation and financial model for service
delivery. In addition, within the context of the mode
of implementation and financial modelling, these
costs are dependent on the individual input
variables to the financial models.
8A relevant case study of the success of SWH can
be seen in the study of Lwandle, a solar water
heating project near Somerset West. This project
is the largest residential water heating project in
South Africa to date and it forms part of the City of
Cape Town’s Cape Care Route.
The project was implemented between 1998 and
2000 as an integral part of a Hostels-to-Homes
upgrade project and provides hot water for 300
community showers. It is the largest single SWH
8 Sustainability Institute, Lyndoch, Stellenbosh
23
project in Southern Africa with a total collector area
of 884 m2 and storage volume of 59 250 litres.
The project has operated successfully despite
there being no routine maintenance of the SWH
systems. Ad-hoc repairs have been undertaken by
the local SWH contractor on a few occasions over
the eight year operating period.
The overall success of the project is attributable to
the high level of awareness and participation by
the community in the original decisions to
implement solar heated water.
The project finance for the implementation was
raised as a combination of capital derived from an
allocation by the Lwandle community from their
housing subsidy and a loan from the Development
Bank of Southern Africa (DBSA). The community
contribution amounted to approximately R1 million
of the R4 million total project cost. The loan
funding of approximately R2.8 million was sourced
from the Development Bank of South Africa
(DBSA) and was secured by the (then) Helderberg
Sub-structure of the City of Cape Town. The loan
repayments have been serviced from a
contribution from rent payments amounting to
approximately R27/month (escalated from
R17.50/month in 1999) [10] by the residents to the
City of Cape Town.
10.2.1 Modes of implementation
There are essentially two modes of implementation
of SWH systems, namely:
1. An ownership-based mode in which the
householder acquires the SWH system
2. An energy services mode in which the
ownership of the SWH system is retained by
an energy services provider who assumes all
responsibility for supply, installation,
maintenance and replacement of the
equipment in return for a service fee.
10.2.2 Estimates
The SWH technology that is deemed most suitable
for low-income housing – and taking economies of
scale into account would be a 100 litre/1.4 m2, low
pressure, direct close-coupled evacuated tube
system, no electrical backup.
The Section on appropriate technologies provides
insight into other energy efficiency directives and
options. It addresses the issue of appropriate
24
technologies in a holistic manner and point to gaps
in the new Norms and Standards.

The proposed system for implementation by

Thubelisha Homes in the N2 Gateway Project
is not a dual-system SWH as the switch-over to
electricity will place an additional operation cost
burden on the indigent.

Basic assumptions
Certain basic assumptions have been made
pertaining to the provision of SWHs.
o
1. Hot water is assumed to be at 60 C,
with
o
a final mixed temperature of
45 C.
2. An annual averageo cold water inlet
temperature of 16.2 C.
3. An average2
daily solar radiation of
6.1 kWh/m
4. Low-income = 20 litres of hot water
per person per day
The costs of materials for the three systems,
complete, is approximately R3,000 for the
noted SWH.
The average costs of installation for the
system is R500 and the maintenance costs,
based on replacement of pressure valves
every five (5) years, electrical heating
elements every five (5) years, anode every
three (3) years and average per year is
R156/annum.
The energy services model is predicated on a
large-scale rollout of SWHs within a
dedicated area, such as perhaps a
concession area, by an energy services
company. The energy services company would
capitalise the business which would involve raising
the funds to both cover hardware and installation
costs, operating and maintenance costs, and
general overheads.
The household pays a monthly service fee, either
on a metered consumption basis or a flat rate.

25
11. APPROPRIATE ENERGY EFFICIENT TECHNOLOGIES & APPROACHES
This Section looks at all the components of the
planning and implementation of energy efficiency
measures in low-income housing. The Section
hinges in part on the energy efficiency measures
noted in the National Norms and Standards as
contained in the revision effective 01 April 2007.
The sections from the National norms and
Standards pertaining to energy efficiency are
shaded and the debates and gaps follow.
Technologies are described at the end of the
section. Only solar water heating technologies are
described in depth. Other components are merely
noted.
11.1 National Norms & Standards
9Planning for Integrated and Sustainable Human
Settlements includes integrated energy planning
(IEP). IEP demands that the energy sector be
integrated with the social, economic, political,
environmental and spatial sectors.
Energy efficient housing is largely informed by
natural elements such as the sun, wind and
rain. Local climatic conditions such as rainfall
and prevailing winds should be considered.
Optimising the use of direct natural sunlight
provide a low-income or no-cost intervention
and is applicable in all climatic regions
11.1.1 Integrated Energy Planning
Defined
IEP is a sound methodology within which energy
policy planning and implementation takes place as
it endeavours to incorporate those sectors
mentioned above. However, energy efficiency for
low-income housing is mostly driven by
economical and political factors. IEP would offer
more if the planning and implementation of energy
efficient measures were largely driven and
integrated with environmental, social and spatial
considerations. IEP should consider the social,
economic, political, environmental and spatial
sectors.10
9 EDPC, Household End-Use Approach, University of Cape
Town
10 Eberhard, A 1994, Integrated Energy Planning: A
methodology for policy analysis and research, SA Energy
Designs for affordable housing must allow for
dwellings to be thermally efficient. More often
than not, in the rush to deliver housing in large
numbers in view of the immense backlog, a
unique opportunity to provide environmentally
sustainable and energy efficient units is
overlooked. Low-income housing is not
designed to take advantage of the gentle South
African climate. Houses tend to be cold in
winter and hot in summer, and require
significant energy consumption and household
expenditure in winter.
As a result, the energy consumption patterns of
low-income households have emerged as one
of the most important factors influencing the
national electricity demand and the high levels
of air pollution mainly due to coal used for
space heating. If sound energy principles are
not incorporated into the design of low-income
housing, beneficiaries are condemned to a
future of high energy consumption. This
situation is exacerbated by local air quality
problems, compromised family health, worker
productivity, and increased greenhouse gas
concentrations.
Energy efficiency can be defined as the
realisation of a higher energy service per given
unit of energy input ensuring that households
can improve their standard of living without
consuming more energy. An energy efficient
house is naturally thermally comfortable, makes
the best use of available energy and does not
require large amounts of energy in its day-to-
day running, while minimising negative
environmental impact. Energy efficient housing
can be enhanced by two aspects, design
considerations for thermally efficient housing
and materials and technologies for the
construction of energy efficient housing.
Policy Research and Training Project, Paper No 2, Energy
for Development Research Centre, University of Cape Town
26
Spatial Considerations
The economic disadvantage of locations away
from urban opportunities necessitates a trade-off
between access and pricing. This hinders
efficiency because people are willing to pay dearly
for energy services and products from the informal
economy which is expensive. These services
would otherwise be more easily accessible and
cheaper to obtain within the formal urban
economy.
In these circumstances, the poor often find
themselves in spaces on the city's periphery which
would (under normal circumstances) have been
declared unsuitable for urban development unless
appropriate interventions (like land fill) were
commissioned to make these suitable. Informal
urban settlements in the Cape are often located on
wetlands or land with high water tables and have
inadequate drainage services to overcome such
problems. This, together with wind leaks and damp
penetration, increases the need for space heating.
The predominance of macro scale determinants
informing the urban building process prevents this
process from responding to the natural conditions
prevailing in certain local areas. Macro scale
determinants can only be stated broadly and
therefore often fail to inform site specific conditions
which informants at a micro scale are able to do.
A good example of this is the insistence in the
literature upon understanding the development of
local areas and dwelling structures in terms of six
(cold interior, temperate interior, hot interior,
temperate coastal, subtropical coastal and arid
interior) or three broad climatic zones (temperate,
hot-humid and hot-dry).
The development of local urban areas is
dependent not only on climatic conditions but on
many other natural elements as well. These are
likely to differ from area to area within the same
climatic zone and include micro-climate
considerations and those of geology, hydrology,
local vegetation and landscape requirements.
If these were to be carefully considered in the
urban building process, not only will thermal
efficiency improve but development would take
place in response to and with respect for the
prevailing environmental conditions within which
local areas are located.
Lighting and Ventilation can regulate heat
flow through windows. Big-sized windows
should be north-oriented to allow maximum
heating. Windows can be shaded by indigenous
deciduous trees in the summer, which will lose
its leaves in winter to allow the sunshine
through. Roof overhang shades the window in
summer, and allows the sunshine in during
winter. Windows facing east and west should
be limited.
Daylighting
Daylighting uses natural light available during
sunlight hours, achieved through:
Appropriately located (north zone) glazed (clear
glass) openings of appropriate size. Necessary to
provide appropriate sunshading in summer to
prevent overheating.
Skylights can also be used to build light levels.
Passive thermal control
Climatic conditions which influence indoor
temperature and thermal comfort include: intensity
of direct and diffuse solar radiation, air
temperature, relative humidity and air movement.
Thermal properties of building materials which
contribute to passive thermal control include
density (store heat during hot periods and
dissipate heat during cool periods), thermal
resistance (minimize heat flow from hotter to colder
zones), specific heat, absorptance (capture radiant
heat for storage during overheated period and
release during overcooled period), emissivity,
transmission and reflectance (reflect away radiated
heat to avoid overheating).
Energy Consumption
Designers should ensure that housing is able to
safely accommodate the use of fuels and
appliances, and advise households on appropriate
and safe fuel use.
Orientation of houses should be an integral
part of planning and design - houses should
face towards geographic north and have most
windows facing north to have the least heat
gain in summer and the least heat loss in
winter. The longer axis of the dwelling should
be orientated to run as near to east/west as
possible.
27

The plan should be designed to maximise
interior space while minimising exterior wall
area, from which heat loss will occur in winter,
i.e. houses designed so that the smallest wall
area is exposed to outside and units are as
close to square shape as possible. Windows
and doors placed on the north side of the house
will ensure that sunlight enters and warms the
floor. The roof overhang must be built on the
northern side to shade windows in summer and
living spaces should be arranged so that the
rooms where people spend most time are
located on northern side. Uninhabited rooms
(bathrooms and storerooms) can be used to
screen unwanted western sun or to prevent
heat loss on south-facing facades.
Various problems are being experienced with
current space heating practices in South Africa.
Space heating would not be such a major
consideration for low-income urban households in
terms of fuel usage if they resided in dwellings with
adequate insulation and their thermal performance
was properly matched with human comfort with
reference to the climatic conditions within which
they are located. Should the thermal performance
of the dwelling be improved, access to electricity to
operate heat pumps, for example, would simply be
a bonus. Additional space heating may then easily
be regarded as a luxury.
Glazing: Major areas of glazing placed in
rooms that are used most and these placed on
northern side of the building to allow solar heat
to penetrate the glazing during winter months.
Windows and doors
Although double or triple glazing, draught stripping
or door and window frame insulation are not
common practices in South Africa, it is included in
this section specifically as an enticement to
change existing and entrenched bad habits.
A major source of energy loss is through windows
and doors. Energy-efficient windows, when
correctly selected and installed, will help to
minimise the heating costs and will also increase
comfort. Although savings from installing new
windows are not as high as other measures (e.g.
cavity wall insulation), it is important to recognise
that windows are replaced very infrequently so
another opportunity to install high-performance
glazing may not arise for a number of years.
Secondary glazing is a good option where thermal
performance needs to be improved and the
existing character of the dwelling needs to be
maintained. Draught-stripping of existing badly
fitting windows and doors is inexpensive and
simple to install. It can greatly improve comfort as
well as reducing heat loss.
Typical features of high-performance windows and
doors include:
Double or triple glazing: The number of panes
and the width of the air gap influence the
performance and energy efficiency of the house.
The gap between panes should be in the region of
16 mm or more (unless gas filling is used).
Low-e coating: This is a special coating on the
inside of the inner pane which is applied during
manufacturing. It helps to reflect radiant heat back
into the room.
Gas filling: Instead of being filled with air, the gap
between panes can be filled with argon, krypton or
xenon. Filling the gap with one of these gases
instead of air reduces the amount of heat that is
conducted through the window. Xenon is the most
effective, but argon is the cheapest and most
widely available.
Insulated window frames: Heat loss occurs
through the window frame as well as through the
glass. An insulated frame further reduces heat loss
and improves comfort.
Draught-stripping: The use of compression seals
reduces air leakage around the frame.
Roof: light coloured cement roof tiles minimise
heat gain through roof and roof insulated with
treated polystyrene board. A 600 mm roof
overhang shades north facade from direct
midday sunlight during summer, and allows
winter sun to warm the interior directly. A fascia
board with a height of about 100 mm extends
the shading.
Heat loss through the roof is the greatest, so the
benefits of installing ceilings include: reduction in
spending on indoor heating by 50%, improved air
quality and thus health, more stable internal
temperatures - all leading to increased productivity.
28

Capital costs approx R2,000 per household - and
energy savings cover this cost over a 20 year
period.
Insulation reduces the flow of heat in and out of the
house i.e. keeps it cooler on a hot day and warmer
on a cold day. The expense of ceilings or tiled
roofs, as well as the loft space used up, indicates
the need for a more cost-effective air-flow system
(e.g solar chimney) which can be installed to
regulate air flow in roof spaces.
Flooring material should be of high thermal
mass, such as concrete, bricks or clay, to trap
heat and solar radiation coming in through the
windows. The heat is slowly released at night.
Concrete screeded floors finished with ceramic
tiles, providing suitable thermal mass to retain
warmth in winter (from direct sunlight) and
coolness in summer (from cool nights). The use
of darker coloured ceramic floor tiles in north-
facing rooms and lighter coloured floor tiles on
southern side should be the norm.
Walls can be insulated by building a cavity
wall (two parallel walls with an air gap
between) is seen as most effective method
(but is also most expensive). Another method
is to plaster walls, or to use panels (also
called construction boards). These panels are
either used as an add-on to the walls and
thus function as an insulation layer or to fulfil
the wall function themselves and have a
structural function.
11.1.2 Retrofitting
When applying new and renewable energy
technologies to existing dwellings it is important to
reduce the energy demand. Low-income dwellings
in South Africa do not have adequate levels of
insulation. They typically use conventional electric
lighting (i.e. with tungsten lamps) and older
electrical appliances. All of these factors can raise
the electric power demand to levels that renewable
energy systems may not be able to meet.
Improving energy efficiency is therefore a strongly
recommended precursor to the installation of
renewable energy systems.
Energy efficiency should be
improved on a ‘whole house’
basis wherever possible,
including:
1. Insulation.
2. Reduced thermal
bridging.
3. Improved air-tightness.
4. Controlled ventilation.
5. Efficient heating and hot
water systems.
6. Responsive heating and hot water
controls.
7. Efficient lighting and appliances.
Cavity wall insulation is the single most cost-
effective, low risk energy efficiency measure
available for the existing housing stock, after loft
insulation. It can be installed without major
disruption to occupants and it needs no
maintenance.
29

11.2 Appropriate Technologies
11.2.1 Solar Water Heating (SWH)
Although SWH is currently the favoured low-
income energy efficient water heating system on
the agenda, the following background information
compiled by a Central Energy Fund report,
sketches the environment within which the South
African housing implementation agencies have to
operate.
Source: http://www.sunhotsolar.co.za/
11
Background
1. South Africa has internationally one of the
best climates for the application of Solar
Water Heating, characterised by very high
radiation levels in the inland areas and
relatively warm inlet water temperatures. The
coastal areas are less favourable, but still
good by international standards. However,
the market penetration is low and stagnant.
2. Internationally, Solar Water Heating thrives in
countries with long-term government
incentive legislation, even with a fraction of
sunshine in SA, and where energy prices for
water heating are perceived to be high.
3. A significant portion of the South African
shipments goes to neighbouring developing
11 Holm, Dieter, Market Survey of Solar Water Heating in
South Africa for the Energy Development Corporation (EDC)
of the Central Energy Fund (CEF) 2005
countries with supportive government
policies/incentives, while SA currently has
none.
4. Significant low risk and low investment jobs
can be created for SMMEs in the business
side of distribution, installation and
maintenance of Solar Water Heaters in South
Africa. This is also an opportunity for gender
parity.
5. History has shown that manufacturing of
SWHs is capital and risk intensive, offering
fewer job opportunities.
6. There was a drastic historic attrition of SWH
manufacturers, retailers and installers in
South Africa in recent years. During the
course of this SWH 2003 project, two known
manufacturers went out of business. Still the
remaining manufacturers state that they have
considerable surplus capacity.
Technology
Typically, SWHs fit into two broad categories:
close-coupled, and integral, units. Close-coupled
units are more efficient than the integral type, while
costing up to four times the initial cost price.12
Solar Water Heaters (SWH) are a simple reliable
technology requiring minimal maintenance of
12City Of Cape Town, Low-Cost Urban Housing Upgrade,
Kuyasa, Khayelitsha, Solar Water Heater Model by AGAMA
Energy (Pty) Ltd, P O Box 606, Constantia
30
technical support. They use 2 basic principles: hot
water rising and black objects absorbing heat, and
comprise 3 components: collect, store and
transfer. SWH can be active (use pump) or passive
(natural convection), direct or indirect (best for all
conditions). SWH can effect significant savings on
electricity usage as geysers comprise 50% of total
household energy consumption.
Compact systems (Passive systems)13
A passive system also known as a monobloc
(thermosyphon) system, a compact system
consists of a tank for the heated water, a solar
collector, and connecting pipes all pre-mounted in
a frame. The water flows upward when heated in
the panel. When this water enters the tank
(positioned higher than the solar panel), it expels
some cold water from inside so that the heat
transfer takes place without the need for a pump. A
typical system for a four-person home in a sunny
region consists of a tank of 150 to 300 litres and
three to four square metres of solar collector
panels.
A special type of compact system is the Integrated
Collector Storage (ICS, Batch Heater) where the
tank acts as both storage and solar collector. They
are simple and efficient but only suitable in
moderate climates with good sunshine.
Direct ('open loop') compact systems are not
suitable for cold climates if they are made of
metals. At night the remaining water can freeze
and damage the panels, and the storage tank is
exposed to the outdoor temperatures that will
cause excessive heat losses on cold days. Some
compact systems have a primary circuit. The
primary circuit includes the collectors and the
external part of the tank. Instead of water, a non-
toxic anti-freezing liquid is used. When this liquid is
heated up, it flows to the external part of the tank
and transfers the heat to the water placed inside.
('closed loop'). However, direct ('open loop')
systems are slightly cheaper and more efficient.
A compact system can save up to 4.5 tonnes
annually of greenhouse gas emissions. In order to
achieve the aims of the Kyoto Protocol, several
countries are offering subsidies to the end user.
Some systems can work for up to 25 years with
minimum maintenance. These kinds of systems
can be redeemed in six years, and achieve a
13 http://en.wikipedia.org/wiki/Solar_hot_water
positive balance of energy (energy used to build
them minus energy they save) of 1.5 years. Most
part of the year, when the electric heating element
is not working, these systems do not use any
external source for power (as water flows due to
thermosyphon principle).
Flat solar thermal collectors are usually used, but
compact systems using vacuum tube collectors are
available on the market. These generally give a
higher heat yield per square meter in colder
climates but cost more than flat plate collector
systems.
Pumped systems (Active systems)
How the solar water heating system is pumped
and controlled determines whether it is a zero
carbon or a low carbon system. Low carbon
systems principally use electricity to circulate the
fluid through the collector. The use of electricity
typically reduces the carbon savings of a system
by 10% to 20%.
Conventional low carbon system designs use a
mains powered circulation pump whenever the hot
water tank is positioned below the solar panels.
Most systems in northern Europe are of this type.
The storage tank is placed inside the building, and
thus requires a controller that measures when the
water is hotter in the panels than in the tank. The
system also requires a pump for transferring the
fluid between the parts.
The electronic controllers used by some systems
permit a wide range of functionality such as
measurement of the energy produced; more
sophisticated safety functions; thermostatic and
time-clock control of auxiliary heat, hot water
circulation loops, or others; display or transfer of
error messages or alarms; remote display panels;
and remote or local data-logging.
Newer zero carbon solar water heating systems
are powered by solar electric (photovoltaic or PV)
pumps. These typically use a 5-20W PV panel
which faces in the same direction as the main solar
heating panel and a small, low flow diaphragm
pump to pump the water.
The most commonly used solar collector is the
insulated glazed flat panel. Less expensive panels,
like polypropylene panels (for swimming pools) or
higher-performing ones like evacuated tube
collectors, are sometimes used.
31
11.2.2 N2 Gateway Application
Existing homes in the N2 Gateway Project have no
water heating systems and use different types of
fuel to heat their water for washing and cleaning.
SWH is a relatively inexpensive method that will
substantially improve the livelihoods of the people
living in low-income housing.
11.2.3 Photovoltaic (PV) Systems14
“While nobody will say that PV can today present a
cost-effective alternative to coal-fired electricity in
South Africa, or that PV will take the place of large
generative capacity, there are specific applications
in which PV can and should be deployed that
would make a substantial difference to the cause
(small margin of Eskom spare capacity) and
impact (negative effect of Eskom power failures on
business and consumers through the interruption
of power supply). Within a few years PV can be
cost competitive to coal-fired electricity if present
Eskom cost increases continue.
There are specific segments within business and
residential markets where PV, in partnership with
renewable energy such as solar water heating will
make a real difference to the present crisis.”15
The term photovoltaic (PV) means the generation
of electricity from light. It is derived from the
Ancient Greek for light ‘photos’, and ‘volt’ which is
the term for electromotive force. Photovoltaic cells
convert energy from the sun into electricity through
semi conductor cells. The electricity is generated
in the form of direct current (DC) which can either
be used directly depending on the application, or
converted into alternating current (AC) for
household use or for exporting to the local
electricity network/national grid. The brighter the
sunlight, the more power is produced– although
PV cells still produce a reduced level of power
when the sun is hidden by clouds.
Shading from other objects (such as nearby
buildings and trees) is a key issue, as PV cells are
more likely to show a drop in system output than
solar thermal panels. Ideally panels should face as
close to due south as possible, and be unshaded
for most of the day. Because individual PV cells
14 Renewable energy sources for homes in urban
environments, Energy Savings Trust, CE69, 2007
15 Professor Vivian Alberts, University of Johannesburg,
2008
only provide a small amount of electricity, they are
generally grouped together into a module for
convenience.
A full domestic system may well have several
modules, together with other system components
such as an AC/DC inverter, batteries (for storing
the energy until it is needed), a central control unit,
mounting structure or materials for fixing the array,
wiring, fuses and isolator.
Types of photovoltaic cells
Different semiconductor materials are used to
produce photovoltaic cells. A semi-conducting
material is one which only conducts electricity
under certain conditions, e.g. when sunlight falls
on it. The most widely used material is silicon.
Silicon is one of the most abundant non-metallic
elements on earth. It is used extensively in the
manufacture of components for televisions, radios
and computers, and is consequently much cheaper
than other potential PV cell materials.
Producing electricity from light
A PV cell consists of a junction between two thin
layers of dissimilar semi-conducting materials.
These materials are usually based on silicon,
although PV cells can also be made from other
materials. Two thin layers of silicon are treated
with small amounts of chemical substances to give
the PV cell its special properties and allow it to
produce electricity. The first layer, known as the ‘p’
type layer, is created by doping the silicon with tiny
amounts of boron. This causes a shortage of
electrons and hence a positive charge. The second
layer is known as the ‘n’ type layer and, like the ‘p’
type, is doped with small amounts of an impurity –
in this case phosphorus. This creates a surplus of
electrons and hence a negative charge. The
barrier between these two layers is known as the
p-n junction. When energy in the form of light is
applied at this point, the electrons are given
enough energy to move across the junction. This in
turn creates an energy variation, otherwise known
as a ‘potential difference’ or ‘voltage’. If a circuit is
made, this potential difference drives the flow of
electrons around the circuit, and an electrical
current is produced.
Monocrystalline
Monocrystalline silicon is usually
grown from a small seed crystal
that is slowly withdrawn from a
32
molten mass of polycrystalline silicon. It is then cut regarding their selection and integration into urban
into very thin wafers. All the atoms within the areas.
crystal are arranged in an orderly pattern. Once In urban environments there is usually a limited
cut, the wafers can then be ‘doped’ with impurities amount of space available for mounting PV
to produce a cell which will convert sunlight into modules. In these situations mono or
electricity. Monocrystalline silicon PV modules are polycrystalline modules have the advantage over
more efficient than polycrystalline, but more amorphous silicon because; being more efficient,
expensive due to the manufacturing process which less surface area is required to provide the same
is both time and energy intensive. output. Conversely, amorphous/thin film modules
Polycrystalline can be deposited on a wide range of rigid and
flexible substrates, making them ideal for
Similar to monocrystalline but
integration into new-build dwellings.
instead of one single crystal,
several different crystals are A key advantage of PV in the urban environment is
used. This process produces their potential to be integrated into the fabric of the
cheaper PV cells than building. No extra land space is required and the
monocrystalline, but with slightly lower efficiencies. visual aesthetics of a building can be altered –
either to be unobtrusive, or to give a clear
Amorphous silicon
indication of ‘green’ credentials.
In this process, silicon is made
In the urban environment, grid-connected PV is
into a thin, continuous strip of
likely to be more practical and cost-effective than a
material or film. Cells can be
stand-alone system. The system is connected to
produced more quickly and
the local electricity network and any excess
cheaply than mono or
electricity not consumed by the household can be
polycrystalline, but efficiencies will
sold back to the electricity supplier. During periods
be between three and five times lower. Amorphous
when the modules are not generating, electricity
silicon modules are ideally suited to applications
will need to be imported.
where there is a large amount of surface area
available for mounting, since they perform much PV modules are commercially available in a range
better in diffuse sunlight than mono or of different types for integration into urban
polycrystalline modules. dwellings and locations. They vary from traditional
aluminium framed modules and roof mounted
The table below shows typical conversion
systems, to products like roof tiles and semi-
efficiencies of silicon based PV modules:
transparent conservatory/atrium roof systems. The
Efficiency (%) Module type Durability (yrs) flexibility of the technology enables products to be
12-15 Monocrystalline 25-30
10-13 Polycrystalline 20-25
3-6 Amorphous 15-20
Efficiency is a measure of the electrical energy
output from the system. A lower efficiency means
more PV modules are needed to produce the
same electricity output.
Suitability to urban environments
PV is perhaps the most suitable of all renewable
energy technologies for widespread use in urban
environments.
Because electricity is generated at the point of use,
the energy loss and costs associated with
transmission and distribution are avoided. There
are however some important considerations

33
used which have the same structural and weather
properties as traditional construction materials.
Furthermore, their modular construction allows any
size of system to be installed.
In the residential market solar can play a key role.
Solar water heating, used in conjunction with gas
for cooking, would combine very well with solar
PV. PV systems can and should be used to power
essential electrical appliances and lights in homes.
Key to rolling out PV installation in the
domestic/residential sector would be:
1. Capital subsidy for targeted PV segments.
2. Finance facility to overcome upfront capital
costs.
3. Enactment of various policies to enable
harvesting of substantial value of carbon
credits and/or Tradable Renewable Energy
Certificates.
11.2.4 N2 Gateway Application
16Though more expensive than electricity, it must
be considered that PV produces a fixed cost of
electricity for 25 years. PV will be cheaper than
grid power within 12 years and will produce
electricity at half the projected Eskom cost at that
time. Key benefits include:
1. PV power is not subject to failures. In recent
outages, electricity at any cost would have
been acceptable.
2. There would have been no Eskom capacity
shortage if SA had implemented solar (PV and
thermal) decades ago, as China did.
PV should also be used in public infrastructure
such as traffic lights and street lights. While the
total consumption of these segments is minor in
the total market, these applications would make a
significant difference during power failures recently
experienced.
11.2.5 Compact Fluorescent Light
The easiest and most cost-effective way to reduce
energy consumption is by using Compact
Fluorescent Lights (CFL). Lighting makes up 12%
of total electricity use in the low-income housing
16 Interview Professor Vivien Alberts, University of
Johannesburg, 2008
sector. This can be reduced by 70% using CFL
bulbs.
Low-energy lighting, using compact fluorescent
lamps (CFLs), can be fitted at any time. Low-
energy lighting is
most cost-effective
when fitted in rooms
that are most often
used e.g. living
room, kitchen and
hallway.
CFLs last twelve
times longer than
conventional
tungsten lamps. They use as little as 25% of the
energy used by tungsten bulbs.
Good quality CFLs with ‘high-frequency ballasts’
light up instantly, don’t flicker, and produce full
brightness quickly. There are different fittings to
suit a variety of lamp types.
• ‘Plug-in’ CFLs fit in tungsten lamp holders.
• 2- or 4-pin CFLs have light fittings
designed specially for them. They are also
cheaper to buy.
• 4-pin CFLs can be dimmed (requires
specialist equipment).
Fluorescent tubes
Contain high-frequency ballasts as standard, which
avoids flicker. Dimmable high-frequency ballasts
are available. Slimline 26 mm diameter fluorescent
tubes give energy savings of around 8-10%
compared with older 38 mm fluorescent tube for
the same colour rendering, and are cheaper to
buy. They are suitable for kitchens, workshops and
garages.
2.12.3 Tungsten halogen
Only suitable for spotlighting/task lighting, and
should not be used for general household lighting.
They are 50-100% more efficient than standard
type bulbs and last about twice as long.
11.2.6 N2 Gateway Application
As light bulbs are one of the easiest interventions
to implement a measure of energy efficiency, it will
take very little effort from Thubelisha Homes to
embark on a mass light bulb replacement drive
throughout the N2 Gateway Project and to ensure
34
that all light fittings installed – residential and
public – can accommodate CFLs.
11.2.7 Energy efficiency & cooking - LPG
Many households17 are reluctant to utilise LPG not
only for cooking but other end purposes as well
mainly because of their perception that this fuel
carries a high degree of danger.
The government plans to construct approximately
3,000 houses in the next five years. The proposed
housing programme provides an opportunity to
change this perception of the potential occupants
of new dwellings and to encourage them to utilise
LPG for cooking and other end-uses.
In addition to electrification, gas cylinders can also
be provided for in the planning and construction of
new houses. In this way, new households (in the
urban poor sector of South Africa) will be left with a
choice of fuel usage for different activities.
11.2.8 Technologies for Sustainable
Human Settlements
Developing Sustainable Human Settlements is
much more than the heating system, light bulbs or
the position of the dwelling. It has to do with the
spatial development of communities – density or
sprawl, the way in which dwelling types are mixed,
distance from productive centres, water supply,
sanitation, and the way planners look at
establishing vibrant communities, able to work and
function optimally in their communities.
The previous sections described indepth the
applicable water heating technologies, specifically
for the N2 Gateway and other similar projects. The
following section is a brief overview of other
technical components that have a marked
influence on energy efficiencies in communities
and in their homes.
Renewable energy technologies18
There is some experience with RETs in South
Africa, but the potential for renewable energy is still
17EDPC, Household End-Use Approach, University of Cape
Town
18 Clean Development Mechanism (CDM) Investor Guide
United Nations Industrial Development Organization Vienna,
2003
largely untapped. Jointly, such projects could help
make the fuel mix in South Africa significantly
cleaner.
Wind Power
While both Eskom and the Darling Wind farm are
installing the first turbines, these do not begin to
reach the estimated potential. There are various
estimates of the potential, ranging between 2 and
24 TWh/year, which means that current facilities
exploit less than 1% of the potential.
Biomass and Biodiesel
Existing use of renewable energy in South Africa
primarily means biomass. Except for a few small
hydroelectric facilities and a small number of other
renewable energy demonstration projects, biomass
use has been the only significant source of
renewable energy until very recently.
Quantitative research on national biomass
consumption, however, has been very limited, with
the Department of Minerals and Energy Biomass
Initiative being the most authoritative report.
Potential projects might use biomass for
production of liquid fuels, or for electricity
generation. Biodiesel has been commercially
produced in several European countries for close
on 15 years, and in the United States for the past 5
years.
Considerable expansion in the production of bio-
diesel is anticipated in these countries. Since it has
already been accepted in developed countries, bio-
diesel technology can quickly and easily be
implemented in South Africa. For Thubelisha
Homes, this energy source can prove suitable in all
their developments. It can feasibly provide for the
electricity needs of the indigent without them
having to be burdened with the costs of grid
electricity.
On a macro scale, the production potential of
biodiesel (without impacting negatively on food
production) is large, while impressive numbers of
jobs can be created in the process. Using some
2.3 million hectares of land, it has been estimated
that 1.4 billion litres of biodiesel could be
produced. Assuming that half of this production
could be achieved in the next 10 years, these
results in 700 million litres. Assuming 40 MJ/litre,
this would be an additional 7,778 GWh, which is
17% of current diesel use for road and rail
transport. We suggest a target of 10% of annual
35
diesel consumption from renewable sources to be Sustainable Water21
reached within 10 years.
Sustainable water has the following components:
Landfill Gas Water Efficient Low Cost Housing
Historically, there has been little or no attention
South Africa has limited and erratic rainfall, and is
paid to the draining of gases from landfill sites in
essentially a dry, drought-prone country.
South African Priority sectors and CDM project
Evaporation rates are exceptionally high, and the
opportunities in South Africa.
ground-water reserves in South Africa are small
Emission reduction19 and increasingly fragile. Year by year, additional
sources of water are becoming both more difficult
Residential cumulative MtCO2 over 30 years
to find and more expensive to develop.
Replace incandescents 11
Through the increasing demand resulting from
Efficient lighting practices 18 population growth and urbanisation, industrial
Efficient wood/coal stove 5 development and agricultural needs, water is
becoming an increasingly scarce commodity. If this
Hot plate to gas cooking 5 increasing demand exceeds the potential supply,
Hybrid solar water heaters 88 we will be faced with a permanent water crisis. In
the current policy environment water is now
Solar water heaters 2 regarded as a national resource. The effective
Heat pumps for hot water 19 management of this scarce resource is critical to
the continued development. It is, therefore,
Insulation of geysers 25
essential that everyone, including housing
Efficient use of hot water 22 developers and designers; plays a part in
Thermally efficient housing 9 conserving water.

Electric to gas space heating 25 Layout: In small buildings, such as low cost
houses, very little consideration is given to the
Appliance labelling & standards 25
Solar home system 2
Distributed wind generation –
Paraffin to gas cooking 2
CDM projects can encourage the collection and
productive use of methane and other landfill gases.
Existing and future landfill sites can be designed to
maximize this resource in a sustainable and
environmentally beneficial way. Secondary
benefits include the sedimentation of the material
in the landfill and hence the prolonged life of the
landfill before municipal waste is disposed of
further and further afield, with the associated
increases in costs and emissions. Currently a
number of landfill CDM projects are being
pursued.20

19 De Villiers & Matibe, in Clean Development Mechanism

(CDM) Investor Guide United Nations Industrial
Development Organization Vienna, 2003
21 National Department Of Housing Guidelines For
20 Clean Development Mechanism (CDM) Investor Guide United
Environmentally Sound Low Cost Housing
Nations Industrial Development Organization Vienna, 2003

36
layout of plumbing systems. This is mainly due to
the fact that building design is often completed and
construction started before the plumbing contractor
is employed. In such cases, optimal layout is
difficult to achieve.
One of the primary causes of persistent water
wastage in domestic dwellings is the “dead leg” in
the hot water system, a long pipe run from the
water heater to a supply point. This causes much
cooled water to be drawn off before hot water is
discharged. Energy waste is also of concern in this
scenario.
Pipe Sizing: The optimum pipe sizing is essential
to the performance of many of the water saving
devices.
Water Pressure: The pressure at which water is
distributed within a building can have an effect on
water consumption for a number of reasons. Water
supplied to a point of use at a higher pressure than
necessary causes wastage because more water is
discharged from the tap or other fitting in a given
period of time than is necessary to perform the
function (such as rinsing a cup or washing hands).
A lower pressure will, in most cases, not detract
from the utility of the supply. Higher pressures also
increase the amount of water lost due to leakage.
Plumbing Fittings: It is pertinent that the
Engineer/Designer for plumbing fittings understand
all the various guidelines, policies, standards and
best management practices for water supply
systems design and plumbing.
Secondary Water Use (Grey Water) and
Rainwater Harvesting: Rainwater harvesting is
the process of intercepting storm-water runoff and
putting it to beneficial use. Rainwater is usually
collected or harvested from rooftops, concrete
patios, driveways and other impervious surfaces.
Buildings and landscapes can be designed to
maximize the amount of catchment area, thereby
increasing rainwater harvesting possibilities.
Intercepted water then can be collected, detained,
retained and routed for use in evaporative coolers,
toilet flushing, pet and car washing, indoor plant
watering, pet and livestock watering, and for lawn
and garden irrigation.
Grey water refers to the reuse of water drained
from baths, showers, washing machines, and sinks
(household wastewater excluding toilet wastes) for
irrigation and other water conservation
applications. Contrary to common belief, grey
water is not an entirely “safe” product—it contains
bacteria and other potential pathogens. It should
therefore be used with caution.
Water Saving Devices: Advances in technology
mean that water-saving devices are continuously
being updated and new ones appear on the market
on a regular basis. These include the following:
Toilet Systems
With the severe affordability constraints in the
subsidised housing sector, developers often
provide on site sanitation. VIPs and composting
toilets are generally regarded as being
environmentally sound. However, care must be
taken in the design of on site sanitation, as
improper design may lead to ground water
contamination.
In the case of waterborne sewerage, the most
common toilet system in domestic use is one
which uses a cistern, usually either low-level or
close-coupled. For optimum water conservation a
low-volume or dual-flush type should be used.
These cisterns should be used with a pan
designed to be used with low flush volumes.
Taps
Water conserving taps with a lower flow rate than
previously accepted as the norm should preferably
be selected for all new installations. These are
designed to give comparable levels of utility while
using less water. Taps fitted over wash basins do
not need to provide a high rate of flow. Another
option which is suitable in certain situations is the
metering tap, which delivers a pre-determined, but
adjustable, quantity of water when operated.
37
12. A PROCESS TO FOLLOW FOR ENERGY EFFICIENT HOUSING
12.1 Application: N2 Gateway
The approach will be broadly similar regardless of
the type of system involved. It should ideally form
part of the wider N2 Gateway Project, with the new
and renewable energy systems helping to achieve
other objectives such as affordable warmth, good
asset management and sustainable development.
The use of renewable energy technology should
always be combined with improving energy
efficiency. The carbon reductions achieved from
energy efficiency measures will generally be
greater than those from renewables. In addition, it
is important to reduce energy demand in the
dwellings to a level where renewables can make a
significant contribution.
Reiterating the purpose of the Thubelisha Homes
N2 Gateway Energy Efficiency Pilot Project
objective being to install SWH systems in
approximately 3,000 dwellings and ensure that
within budgetary constraints as many energy
efficiency components are present in the
construction of the dwelling as the present plans
provided for. This pilot project is not a pure
greenfields project as the plans have been drawn
up and passed, the bulk infrastructure is in place
and the construction teams are on site. Thus, there
are spatial and construction energy efficiency
measures that cannot be included in the pilot
project.
However, as Thubelisha Homes’ building
specifications incorporate the bulk of the
construction energy efficiency measures, such as
ceilings, plastered walls, etc. the dwellings will
comply to certain standards. Where, for instance,
the SWH system requires additional construction
components, such as ensuring that the roof can
hold the weight of the SWH system as well as a full
tank of water or guttering for the water overflow,
the financial aspects of these components will be
considered and costed as part of the SWH
installation. As the donor funding from Danida is
for a specific amount, the number of dwellings that
will be fitted with SWF and other supporting
construction components may have to be
determined by the overall cost of installation.
The project is subservient to the overall immediate
objectives in line with the South Africa-Danida
Cooperation Agreement, being:
1. Awareness of regulators, local authorities,
private sector, practitioners and low-income
consumers.
2. Adequate information sharing and
dissemination.
3. Affordable technologies developed i.t.o.
intervention approaches, selected, piloted,
evaluated in low-income houses and prepared
for large-scale dissemination.
4. Inform, through lessons learnt, the Regulatory
Framework for energy efficient low-income
houses.
It is important that the pilot project outcomes
remain in line with the stated immediate objectives.
The following process flow summary looks at how
Thubelisha Homes can feasibly tackle the project:
Step 1: Pre-Project Planning
3. Completion and endorsement of the Project
Document (Rewritten 2008) by stakeholders
such as Danida, the NDoH and Thubelisha
Homes.
4. Procure and appoint a Chief Technical Advisor
5. Establish a Project Steering Committee
6. Contract specialist consultants, who can
estimate costs and obtain preliminary
quotations for the different outcomes stated
above.
Step 2: Assess the Potential
1. The Chief Technical Advisor, in conjunction
with the Thubelisha Homes’ Project
Management Team, will consider the choice of
appropriate technologies taking all the existing
components of the pilot project into
consideration being:
a. That the project consists of new dwellings;
b. That the project planning (plans and
approvals) is in an advanced stage –
except for the energy efficiency
components;
c. That the rudimentary project budgets have
already been completed;
38
 d. That the contracting of the construction Step 4: Develop a full specification –
component has been done. construction, community engagement and
finance options
2. The Chief Technical Advisor will develop an
Implementation Plan, including implementation 1. Specify and record the chosen technology and
budgets and reporting to the appropriate the required performance of the dwellings, in
structures. terms of fuel use, fuel costs and carbon
emissions.
3. To inform the Energy Efficiency
Implementation Plan, the CTA will 2. Finalise reporting structures, including the
Project Steering Committee appointments
a. Identify the current and projected energy
demand. Evaluate space heating, water 3. Finalise all pre-implementation components
heating and electric power requirements
Step 5: Apply for funding
(for appliances and lighting). Estimate the
contributions that may be made by 1. Finalise all budgetary issues including
renewable energy. a. Examining the potential for Carbon Credits
b. Identify the fuel use and the carbon and Tradable Renewable Energy
savings expected from renewable energy Certificates (TRECs) as outlined in
technologies. Section 7.
c. Compare the carbon emissions reductions Step 6: Implementation
achievable from the various renewable a. Obtain competitive tenders and
energy technology options, taking into b. Iimplement the scheme.
account the type of fuel or energy to be
offset.
d. Consider affordabilities, evaluate residents’
benefits and identify alternative funding
methods to assist the indigent so that they
are not further burdened. Consider finance
mechanisms described in Section 7.
e. Consider the different Community
Engagement (Communications) options
and contract suitable consultant or NGOs
to develop the materials and strategy.
Step 3: Consult with community leaders,
residents and contractors
1. Appraise the Communications Proposals and
procure this service.
2. Embark on a participatory education and
awareness campaign.
3. ‘Buy-in’ from community leaders, residents
and contractors are critical to the long-term
success of the programme.
4. All Stakeholders will need to be informed and
educated about the benefits of renewable
energy technology.

39
13. FINANCE MECHANISMS
Top-up subsidy granted to beneficiaries with
13.1 Government Subsidies household income not exceeding R3 500 per
A Government Housing Subsidy is a grant to month, while beneficiaries with a household
qualifying beneficiaries. This subsidy is not paid in income of between R1,501 to R3,500 per month
cash, but it is used to construct a house that pay a contribution of R2,479. Beneficiaries
complies with minimum technical and exempted from making a contribution (see table)
environmental norms and standards, and will also be assisted in the form of an increased
transferred to beneficiary. subsidy.
Individual Subsidy Provides qualifying
13.1.1 Housing Subsidy Applicant beneficiaries with access to housing subsidies to
Criteria acquire ownership of improved residential
The housing subsidy applies when the following properties (stand and house) or to acquire a house
criteria are met: building contract which is not part of approved
housing subsidy projects. The latter option is only
Married or Financial Dependants: Married or co- available to beneficiaries who will access housing
habiting or single person with proven financial credit.
dependants (such as children or family members).
Project Linked Subsidy Enables a qualifying
SA Resident or permanent resident permit household to access a complete residential unit,
Competent to Contract: over 21 years of age and which is developed within an approved project
of sound mind. linked housing subsidy project for ownership by the
beneficiary.
Monthly Household Income: Gross monthly
household income must not exceed R3 500. Institutional Subsidy Available to qualifying
institutions to enable them to create affordable
Not yet benefited from Government Funding: housing stock for persons who qualify for housing
Must not have received previous housing benefits subsidies. Provides capital for the construction of
except: a Consolidation or a Disability subsidy housing units in respect of qualifying beneficiaries
First time property owner: May not own or have who do not earn more than R3 500. Paid to
owned a house. This does not apply to persons approved institutions to provide subsidised housing
with disabilities or, beneficiaries of Land Restitution on deed of sale, rental or rent to buy options, on
Programmes. condition that the beneficiaries do not pay full
purchase price and take transfer within the first
Individual and
Top four years of receipt of the subsidy. Institutions
Structure Own Product must also invest capital from its own resources in
Project Linked
Funding Contribution Price
Subsidies the projects.
only
Discount Benefit Scheme Promotes home
R0 - R1 500 R38 984,00 None R38 984,00 ownership among tenants of state-financed rental
stock, including formal housing and serviced sites.
R1 501 - R3 500 R36 505,00 R2 479,00 R38 984,00
Tenants receive a maximum discount of up to
Indigent: Aged, R7,500 on the selling price of the property. Where
Disabled and the discount amount equals or exceeds the
R38 984,00 None R38 984,0
Health Stricken purchase price or loan balance, the property is
R0 - R3 500 transferred free of any further capital charges
People's Housing Process Supports households
13.1.2 Subsidy Types who wish to enhance their housing subsidies by
Consolidation Subsidy For previous beneficiaries building or organising the building of their own
of serviced stands, financed by the previous homes themselves. This process is a method of
housing dispensation [including the Independent accessing the Projects Linked, Project Linked
Development Trust's site and service schemes]. Consolidation, Institutional, or Rural Subsidies as

40
well as technical and other forms of assistance in
the house building process.
Ceiling Subsidy In some coastal areas of South
Africa, households are entitled to an additional
R1,600 per dwelling for ceilings. This concession
was instigated to combat negative health effects of
moist, damp and mould.
Rural Subsidies Available to beneficiaries who
only enjoy functional tenure rights to the land they
occupy. This land belongs to the State and is
governed by traditional authorities. The subsidies
are only available on a project basis and
beneficiaries are supported by implementing
agents. Beneficiaries also have the right to decide
on how to use their subsidies either for service
provision, on building of houses or a combination
thereof.
13.2 Financing mechanisms22
There are different financing mechanisms for SWH
systems. The most appropriate financing
mechanism for a particular SWH client depends on
the mode of implementation for that client.
In the case of ownership-based modes of
implementation the most appropriate financing
options include:
1. Cash purchase
2. Credit purchase using an overdraft or a credit
card
3. Short- or long-term asset-based finance using
a targeted SWH loan or a mortgage-based
advance
In the case of an energy services mode of
implementation, the finance issue for the client is
solved as an integral part of the overall service
offering. Consequently, the financing challenge is
focussed at the level of the range of enterprise
funding mechanisms for a service company rather
than on the individual customer level.
22 This section hinges on the investigation done and reflected
in the document Modelling and Analysis of Financial
Structuring for SWH Projects, for Danida by Agama Energy
and Lereko Energy, April 2007
13.2.1 Solar Water Heating Financial
Support Mechanisms
Support mechanisms for SWH include legislative,
financial and awareness programmes. These
should be complementary and ideally, they should
be implemented together as a suite of support
mechanisms for increased uptake of SWH
systems.
A range of financial support mechanisms are
available to support either, or both, of the modes of
implementation. These are described below.
Capital subsidies
Financial support by means of capital subsidies
includes options such as demand side
management (DSM), subsidies under the CEF
Solar 500 project, and supplementary grants to the
housing subsidy for low-income housing and
others.
Eskom currently manages a Demand Side
Management (DSM) fund. This fund is focused on
subsidising interventions that reduce the overall
electrical demand in the country – and hence
Eskom’s involvement in the fund has been called
into question, since it is not compatible with their
core business. The discussion as to the relocation
of the National Energy Efficiency Agency (NEEA)
under the Central Energy Fund (CEF) is currently
ongoing.
Regarding DSM for solar water heating, it is
anticipated that the fund will provide a capital
subsidy at a minimum of R2,000 per SWH system.
Interest subsidies
Subsidies on the interest for loans are a useful
financial support mechanism. Typical examples
include Green housing bonds (home loans) and
preferential rates for lower risk customers at
commercial banks.
Although not currently an institutionally debated
mechanism, there is a positive impact regarding
SWH uptake through provision of an interest rate
subsidy on SWHs. This could, for example, be
offered through a revolving credit fund that would
be able to accessing risk guarantee(s) for
financiers.
Interest holidays
The use of interest holidays is focussed on ‘back-
loading’ the repayment profile for loans to make
41
the repayments more affordable in the short term.
This does not necessarily imply a lower overall
cost to the lender (it is more likely to add to the
overall cost) but the access to the loan is made
easier.
National tax and / or municipal rates rebates
Tax or rates rebates are a very effective method of
providing tax relief as a reward to liable taxpayers
who are adopting policies which need to be
supported by national or local government.
Basic energy grants
A basic energy grant is already implemented in
South Africa and is provided in terms of a small
allocation of “free electricity”. The motivation for a
basic energy grant is to provide a lifeline service to
very poor households. This mechanism could be
applied in the form of “free hot water” as a
supplementary grant to (or instead of) the current
levels of “free electricity”.
Tradable Renewable Energy Certificates (TRECs)
A related approach – as widely used in Australia –
is to use the Tradable Renewable Energy
Certificate (TREC) system for subsidising the
capital cost of SWHs over a ten-year crediting
period. The TREC system values the same
avoided emissions as are calculated for the CDM
approach, but issues a certificate for avoided
electricity consumption that is redeemed when the
sponsor of the system pays the allocated value.
One TREC corresponds to 1 MWh of electricity
avoided.
The current approximate value of a R200
TREC is South Africa:
Average annual household energy 2 MWh
expenditure on hot water:
Total energy displacement by the unit 20MWh
over a 10 year period
Total up-front capex subsidy available R4 000
from TREC:
Thus there is potentially a sizable contribution
available from this approach.
Renewable Energy Finance and Subsidy Office
(REFSO)
The Department of Minerals and Energy has
established REFSO, whose mandate includes:
1. The management of renewable energy
subsidies; and
2. Offering advice to developers and other
stakeholders on renewable energy finance
and subsidies. This includes information
on the size of awards, eligibility,
procedural requirements, and
opportunities for accessing finance from
other sources.
Submitting an expression of interest, as the first
step in applying for a renewable energy subsidy,
can be submitted throughout the year. However,
decisions regarding the award of letters of
registration and the subsequent awarding of
subsidy contracts are made by the departmental
Renewable Energy Subsidy Governance
Committee (SGC), which meets three times a year.
The REFSO Secretariat supports the SGC in this
process.
At the SGC meeting held at the beginning of 2006,
the SGC approved and issued 12 letters of
registration (a total of 29 letters of registration have
been issued to date) to projects that have now
been registered with REFSO as potential
beneficiaries of the renewable energy subsidy
scheme.23
This subsidy applies to developers of energy
efficiency programmes (including SWH projects),
which could feasibly include large-scale low-
income housing programmes.
Carbon finance
The Clean Development Mechanism (CDM),
supported by the Energy Efficient Strategy of the
Government, provides the framework for
quantifying and certifying the avoided emissions
reductions for projects. Solar water heating has a
significant impact on avoiding emissions at power
stations, given that some 92% of the country’s
electricity is generated using coal-fired thermal
stations with a very high emission co-efficient.
Carbon Finance is a complex mechanism and both
the feasibility and morality of this mechanism is
being debated. Due to the complexity of the
mechanism, this report includes an explanatory
section on Carbon Finance in an attempt to clarify
the debates.
23 http://www.dme.gov.za/energy/renew_finnace.stm
42
13.2.2 Carbon Projects: An Opportunity24
As climate change rises up the international
agenda, reducing greenhouse gas emissions
becomes an ever stronger imperative. South Africa
is a significant contributor to the climate change
problem, being amongst the world’s top twenty
greenhouse gas emitting countries. Around 80% of
South Africa’s emissions are energy related, due
largely to our coal based electricity supply.
South Africa has signed up to the current
international climate change policy framework, the
Kyoto Protocol. Being designated a ‘developing
country’ under the Protocol, it has not been
assigned emission reduction targets along with
industrialised countries, but can be awarded for
actions to reduce emissions through a Kyoto
Protocol mechanism called the Clean
Development Mechanism (CDM).
CDM Incentives
The CDM incentivises projects which reduce
greenhouse gas emissions beyond “business as
usual” by enabling these projects to generate
emission reduction credits, or ‘carbon credits’.
These credits can be bought by emitters in
industrialised countries and used to comply with
their targets. The economic rationale for the CDM
is to expedite lower cost emission reduction
opportunities wherever they occur internationally,
given that greenhouse gas emissions mix
uniformly in the atmosphere. The net
environmental effect of the CDM is neutral, but the
mechanism assists developed countries to achieve
their targets, and also supports developing
countries develop along clean paths, thus avoiding
a multiplier effect of future emissions from these
countries.
Proceeds from the sale of carbon credits can
assist in the financing of emission reduction
projects in South Africa. As with any other product
or service generated on an ongoing basis by a
project, there are a number of ways in which this
revenue stream can be used in the project’s
financial structuring: carbon credits can be sold
forward, and this contract used as collateral in loan
financing; they can be sold only after they have
been generated (risk free) over the spot carbon
market at premium prices; buyers may wish to pay
24This section is contributed by Emily Tyler, Genesis
Analytics, 2008
upfront for carbon project development costs with
a right of first refusal over any credits generated.
The use of carbon credit revenues in project
financing has come to be known as ‘carbon
finance’.
Additionality
An important, yet controversial element of carbon
project design is the concept of additionality. Given
the neutrality of the CDM, it is imperative that the
emission reduction activities are additional to those
that would have occurred in the absence of the
project. If this is not the case, the developer is
getting credit for something that they would have
done anyway, and the net stock of atmospheric
greenhouse gas emissions will increase.
Additionality is a very difficult concept to prove in
reality.
Carbon finance can greatly assist emission
reduction projects in overcoming financing hurdles,
and in generating an ongoing and potentially
appreciating source of income. If used
strategically, it could play an important role in
public financing of sustainable energy
infrastructure, particularly in bringing sustainable
energy services to the indigent. If undertaken
through a government to government transaction,
carbon finance presents a long term annuity from
investment grade counterparty to a project.
However, it is not an easy form of finance to
incorporate into a project’s design, and certain
project types lend themselves better to design as a
carbon project.
Two main types of sustainable energy
interventions in low-income housing have been
considered in respect to carbon finance in South
Africa to date:
1. The first is a suite of interventions grouped
under the term ‘thermal efficiency’. These
include building houses from insulating
materials, orientating a house optimally for
coolness in summer and warmth in winter,
or building overhangs to enhance the
ambient temperature of the house.
2. The second is solar water heating.
Of the two, the solar water heater provides a high
proportion of the emission reductions, but thermal
efficiency solutions are significantly lower cost.
43
Revenue from Carbon Credits
This CDM project realises 2.8 carbon credits per
30m2 house per year. At a carbon price of €1525
this amounts to ZAR46226 annual income to the
house. Studies of 48m2 greenfield houses
(incorporating thermal efficiency measures and a
higher hot water usage) show a potential of 10
carbon credits per house per annum, translating
into ZAR1650 per annum per house. These carbon
revenues are gross figures, and the not-
insubstantial costs of developing, registering and
monitoring the projects still need to be taken into
account.
For a sustainable energy project, the net gains
from carbon finance are in the region of 30% of the
overall retrofitting project costs.
Barriers to sustainable financing
One of the main barriers is the provision of
sustainable financing. To address this barrier, a
national Sustainable Housing Facility (SHF) is
being proposed. The SHF concept is being
championed by a Steering Group comprising the
Departments of Minerals and Energy and Housing,
the South African National Energy Research
Institute (SANERI), the National Energy Efficiency
Agency (NEEA), the National Housing Finance
Corporation (NHFC) and the Development Bank of
Southern Africa (DBSA) and SouthSouthNorth.
Danida is funding the development of a business
plan for the Facility, to enable its implementation.
The business plan, will scope out timeframes,
budgets and outstanding risks related to the
implementation of the SHF27.
25 Achievable price for a risk free Gold Standard carbon
credit at the time of writing (Jan 2008).
26 At a Euro/Rand exchange rate of 1:11
27 For further information on the SHF, please contact Emily
Tyler of Genesis Analytics Climate Change Practise on
emilyt@genesis-analytics.com
Developed under REEEP funding28 the SHF
concept has been widely consulted, and co-
ordinates low-income housing developer’s access
to both CDM financing at scale and financing from
the South African Demand Side Management
(DSM) fund, amongst others29.
The SHF vision is to manage a revolving fund,
which provides up-front capital to housing project
developers to implement sustainable energy
interventions, and then recoups this capital from
the international carbon market and DSM in order
to seed further projects.
Initial modelling demonstrates that by tapping into
both financing sources and a nominal contribution
by home owners, the full costs of the interventions
can be covered, thus providing low-income
homeowners with access to the energy services of
hot water and thermal comfort.
The SHF is designed to be self-sustaining, and
could be implemented by a number of existing or
new institutional vehicles in either the public or
private sector.
Programmatic CDM
The SHF will utilise a newly-approved form of the
CDM, programmatic CDM.
Prior to 2007, carbon credits could only be
generated on a project by project basis, but
programmatic CDM enables the crediting of all
emission reductions occurring under a programme
of activities. This significantly increases the volume
of credits generated, hence tapping into
economies of scale.
28 Renewable Energy and Energy Efficiency Partnership
(REEEP), www.reeep.org
29 The Basic Energy Grant may also provide a funding source
44
14. COMMUNICATION AS A CRITICAL COMPONENT OF SUSTAINABLE
DEVELOPMENT
14.1 Communication is Core to the
Energy Efficiency Strategy
“Perhaps the most neglected area for
implementation of energy efficient communities is
the promotion of public awareness about the costs
and benefits of energy efficiency. Major energy
savings can only be achieved through changes in
people’s behaviour, and that depends on informing
them about what options exist.
The World Summit on Sustainable Development
(2002) sensitised the nation about the impact that
energy use has on the world’s weather systems. In
this era of climate change South Africa needs to
take more urgent measures to reduce energy
usage than in the past.
Information and general awareness are key
elements to achieve success in terms of changing
South Africa into a more energy efficient society.
Once laws and regulations are established,
architects will need guidance (from standards,
codes of practice, etc.) on how to design houses
according to the new regulations, and plumbers
should also have be informed about the need to
insulate geysers.
Awareness-raising starts with pre-schooling
education and runs through all learning fields into
the adult education system, under the auspices of
the National Qualification Framework (NQF) up to
Level 8. The Department of Minerals and Energy
will engage with the institutions responsible for
education and support, and facilitate the inclusion
of appropriate education on energy efficiency in
the curriculum.
The DME will strive to ensure that:
1. Energy Efficiency is taught and examined
at all levels in all appropriate subjects, in
particular engineering and architecture;
2. Energy Efficiency is a competence
requirement under the National
Qualifications Framework training
programmes for skilled workers in the
relevant construction and buildings
services trades”.30
Energy efficiency opportunities are frequently
overlooked due to the simple fact that industry and
other consumers are unaware that they exist. It is
the intention of the Strategy to enhance awareness
in such matters and to bring knowledge and
understanding into the various sectors. This will be
achieved through awareness campaigns,
demonstration programmes, audits and education,
and publicising corporate commitment
programmes, and public building sector energy
efficiency implementation initiatives. Use of the
mass media and electronic options such as
websites will be fully explored to publicise energy-
saving tips, energy management tools and best
practice methods. Where possible joint resources
for Demand-Side Management and Energy
Efficiency will be capitalised upon for the purposes
of promotion, since the cost of awareness
campaigns and related measures is too high to be
sustained continually if executed individually. 31
14.2 Housing Consumer
Education Framework
At the National Housing Indaba held in Cape Town
in September 2005, the Department of Housing
signed a Social Contract with numerous
stakeholders to implement the Housing Consumer
Education Framework.32
The short summary below highlights what this
Social Contract entails. It is telling, however, that
the document makes absolutely no mention of
education for energy efficient houses. This is
characteristic of the serious disjoint between
government departments. Considering that the
Housing Consumer Education Framework was
tabled to consumers during the same time as the
30 Phumzile Mlambo-Ngcuka, Minister of Minerals and
Energy, Energy Efficiency Strategy of the Republic of South
Africa, Parliament, March 2005
31 Energy Efficiency Strategy of the Republic of South Africa
March 2005
32 Housing Consumer Education Framework, Breaking New
Ground in Housing Delivery, Housing security and Comfort,
2005
45
Department of Minierals and Energy tabled the
Energy Efficiency Strategy.
The compilation of the Housing Consumer
Education Framework represents the
establishment of the Housing Consumer Education
Forum and Housing Consumer Education Task
Team made up of consumer representatives,
statutory body representatives, government
representatives, local provincial and national
service providers, representatives from parastatals
(state enterprises, educators and trainers. It also
represents the culmination of a consultative
process which included the above-mentioned
stakeholders.
The main aims of the framework are to:
1. Ensure that Housing Consumer Education
(HCE) is uniform, targeted and specific to
enable housing consumer to make
informed housing choices.
2. Provide a framework for Housing
Consumer Education and awareness •
Build on the foundation of ongoing
Housing Consumer Education by the
various service providers
3. Provide the government’s comprehensive
plan in creating Sustainable Human
Settlements
4. Provide a set of housing programmes and
subsidies provided by government
5. Clearly define the implementation plan of
the Housing Consumer Education
Framework over the next five years
6. To empower housing consumers to
understand their housing rights and
responsibilities, as well as different types
of subsidies offered by government,
ensuring that housing consumers are
educated on existing and new housing
It is very important that this Housing Consumer
Education Framework is revisited by the
Department of Housing and that amendments are
made to include a strong environmental and
specifically energy efficiency in low-income
housing components.
14.3 Education as a Tool
Energy efficiency education is a two way process.
Suppliers' need to understand the energy needs of
low-income households from an end-use
perspective as much as end-users need to learn
about the various options available to them to
conserve energy. The areas where education can
play an important and immediate role include the
following.
On the end-users' side:
1. The meaning of energy efficiency;
2. The improvement of thermal performance
in self-made and/or other low- income
housing;
3. The safe, convenient and efficient use of
energy carriers, including electricity; and
4. The standards and life-cyde costs
associated with dwelling structures and
appliances.
On the suppliers' side:
1. The true meaning of energy efficiency
from an end-user perspective;
2. The role of effective and appropriate DSM
practices/interventions in the low-income;
3. Household sector;
4. The need for socio-economic indicators or
variables to be included in the planning;
and
5. Formulation of energy policy including the
participation of marginalised groupings.
14.4 Status Quo
Apart from the community liaison, education and
awareness-raising programmes that form part of
the core implementation directives of NGO-based
initiatives, no broad-based education and
awareness programmes exist on government level
that specifically addresses energy efficiency in
poor communities. There are no formalised media
- electronic or press – campaign to promote energy
efficiency. The current media coverage hinges on
the sensationalism associated with the inability of
Eskom to provide sufficient energy to the general
South African public – industrial and residential.
Energy efficiency is currently very high on the
informal information agenda and has propelled
numerous statements of intent from the
government.
The omissions are obvious and glaring.
46
15. RECOMMENDATIONS AND CONCLUSIONS
15.1 Regulations on Energy
Efficiency33
Pertaining to the regulations on energy efficiency,
the Energy Efficiency Strategy notes that: The
historically low unit price of energy, coupled with
limited awareness on energy savings potential,
may result in only modest success arising from
voluntary measures and other non-legislative
instruments. For this reason, regulatory means will
be applied to achieve further improvements where
necessary. Efficiency Standards will have limited
impact unless made mandatory, and energy audits
should be accompanied by an obligation to
implement, for example, all no-cost
recommendations identified. The National Energy
Regulator (NER) will contribute to or develop
regulatory measures for guiding reporting and
compliance.
15.2 Enforcibility
The following section sets out the
recommendations put forward by various
researchers and experts. From all the interviews
done for this Project Document (Rewritten 2008) it
is clear that the success of the recommendations
all hinge on one over-arching component, being
that the establishment of energy efficient
communities and specifically sustainable urban
settlements has to be guided by regulations and
legislation that is enforcible. An example that was
mooted consistently was the way in which plastic
bags of a certain quality was outlawed within a
very short space of time and the success of this
environmentally friendly legislation.
15.3 Financing
Similarly, the interviews – across the board – noted
that enforcibility of energy efficiency measures can
only be effective if the financing through the
subsidy scheme is adjusted to meet the initial
increase capital cost of energy efficient
technologies.
33 Energy Efficiency Strategy of the Republic of South Africa March 2005
15.4 Light Bulbs
In the same vein as plastic bags of a certain
standard was outlawed, the NDoH and
government has an opportunity to outlaw Tungsten
bulbs with immediate effect.
15.5 A Uniform Regulatory
System34
Societal expectations can be articulated at a
global, national, regional and local level. Building
regulations, by their very nature, can only establish
minimum requirements that satisfy societal
expectations. Building standards can be used by
building owners to procure buildings which have
superior performance i.e. perform in a manner that
meets their expectations. It is recommended, in
order to capture the spectrum of societal
expectations in buildings in a uniform and
systematic manner that:
1. Performance-based standards and
performance-based building regulations
should be developed
2. A performance description for sustainable
buildings which reflects global expectation
should be developed to facilitate the
setting of goals for buildings at a national
level.
3. Law makers should provide a framework
for regulating aspects of sustainable
buildings, the issuing of prescriptive
building regulations that are impossible to
describe qualitatively and the
establishment of the administrative
provisions relating to the regulation of
buildings.
4. International standards which establish
functional requirements should be
developed in respect of structural design,
dimensions, demolition work, public safety,
site operations, excavations, foundations,
floors, walls, roofs, stairways, glazing,
lighting and ventilation, energy efficiency,
drainage, non-waterborne means of
34 Watermeyer R B and Milford R V, The Use of Performance Based
Building Codes to Attain Sustainable Housing Objectives: The South African
Approach, CSIR
47
 sanitation, stormwater disposal, facilities
for disabled persons, fire protection, space
heating refuse collection, water
installations and fire installations.
5. National standards, informed by guidance
documents, should be developed to
establish performance parameters which
are consistent with local societal
expectations and to provide the means by
which it can be established that solutions
satisfy functional requirements.
6. Performance-based standards should be
developed to enable building owners to
procure buildings that perform in the
manner that they require.
7. National standards, informed by guidance
documents, should be developed to
establish performance parameters which
are consistent with local societal
expectations and to provide the means by
which it can be established that solutions
satisfy functional requirements.
15.6 Local Government35
Local Government has been expected to take
greater responsibility for the management of
settlements within their jurisdiction, particularly in
relation to service and infrastructure provision for
the poor. These shifts have given rise to a number
of difficulties.
A key action required for local governments to
succeed and become self-supporting is the need
for national and provincial government to
regularise the manner in which powers and
functions are assigned to local government. To this
end the Framework for the Assignment of Powers
and Functions to Local Government, as well as the
Inter-governmental Relations Bill will go a long way
to ensure that local government does not have
mandates that are not funded;
Furthermore there is a need to enhance and
improve on the initial integrated development plans
and ensure greater coordination by sector
departments with integrated development plans; ·
An action to promote financial independence of
local government has been the promoting of local
economic development within municipalities, in
35 Human Settlement Country Profile
order to attract investments. However, it is critical
that future local economic development initiatives
seek projects that harness comparative economic
advantages of specific local governments;
Improvement of the financial viability of local
government will also require:
1. The coordination of funds from all relevant
departments to local government;
2. Improved revenue raising skills;
3. Improved borrowing frameworks.
4. With regard to improving local government
capacity the following actions are needed:
5. The establishment of new instruments
such as provincial response teams, local
government administration support
projects, skills programmes and learning
networks;
6. The need to ensure that skills are imparted
to local government officials so as to
reduce dependency on consultants; and
7. To ensure that capacity building support in
the provincial departments, particular the
sector departments is not the sole
responsibility of local government affairs
departments in provinces but that other
provincial departments also develop their
own capacity development strategies.
In terms of settlement management there is a need
for clarity on how integrated development plans
relate to land use management tools. Key to this
issue is finalisation of the Land Use Management
Bill.
15.7 Sustainable Settlements36
Housing practitioners and stakeholders are
increasingly aware of the need to build sustainable
settlements and are gradually making the initial
steps towards integrating the concept of
sustainability into housing delivery and settlement
management. It is important to develop a
comprehensive approach towards sustainable
human settlements, including
1. Promoting innovative partnerships
2. Building on community involvement
36 Human Settlement Country Profile
48
15.8 Identifying Actions and
Opportunities37
1. Policy and legislative framework
incorporates ethos of sustainable
development, and includes explicit
statements about environmental
sustainability
2. Positive partnerships for more sustainable
housing
3. In some cases, housing delivery is linked
to the delivery of basic services
4. There is a need to make energy efficiency
measure mandatory in low cost housing
5. There is a need to acquire suitable, well-
located land for low-income housing
6. There is a need to promote integrated
development and services provision
7. There is a need for awareness raising,
education, capacity building and skills
training
15.9 IEP and DSM38
The informants of integrated energy planning (IEP)
and demand-side management as a component
thereof need to be adapted and revised as a tool
for energy project planning. IEP is a sound and
useful method for informing national policy
planning but is an insufficient tool for energy
project planning at the household or micro scale.
Furthermore, it should have as its foundation, the
qualitative principles of equity, sustainability and
efficiency and should attempt to incorporate all the
different sectors (socio-economic, environmental,
spatial and political).
Future research on end-use patterns among poor
urban households therefore should attempt to
develop a check list of determinants or elements at
the micro scale which might influence this sector's
decision making. This information, in turn, should
be utilised to inform a DSM Plan.
Socio-economic indicators or variables
(affordability, income, poverty, gender and
unemployment) need to be included. This is
currently not the case. Also, performance
standards which take account of qualitative criteria
37 Human Settlement Country Profile, ???
38EDRC, Household Energy End-use, University of Cape
Town
need to be formulated. The implication here is that
if the intention is to build and electrify a certain
number of dwellings per annum (quantity), there
should be a simultaneous commitment to ensure
that these dwellings are well insulated and
therefore thermally efficient (quality of product).
The restructuring of local government provides an
opportunity for integrated micro scale planning to
take place. The delimitation of metropolitan areas
in South Africa into larger and more manageable
local sub-structures define spatial entities can
facilitate this process. There are three important
considerations here:
1. the adaptation of the determinants of IEP
and DSM as a component thereof so as to
inform a methodology for micro scale
energy planning;
2. the formulation of performance standards
for energy planning in South Africa; and
3. addressing the question of whether current
DSM policies are firstly, appropriate for the
focus group of this paper and, secondly,
whether they include socio-economic
variables in their application.
It is therefore recommended that research be
undertaken to revise and adapt the determinants
upon which IEP and DSM as a component thereof,
are based so as to create a methodology for micro-
scale energy project planning which should
incorporate qualitative as well as quantitative
analyses.
It is further recommended that the appropriate
application of existing DSM policies to low-income
urban households be investigated and the
inclusion of socio-economic variables be ensured
in future strategies.
15.10 Energy efficiency and
electrification39
The simultaneous introduction of energy efficiency
measures and electrification will decrease the
demand for electricity significantly. For a large
number of poor urban households, current
inefficient end-use patterns are likely to continue
even when they become electrified. The national
39EDRC, Household Energy End-use, University of Cape
Town
49
electrification programme should therefore
incorporate measures to address this issue.
There also appears to be an assumption that this
sector has access to appliances to utilise electricity
for end-uses such as cooking. This is not
necessarily the case and where appliances are
accessible, electricity is not the most efficient
energy carrier for cooking.
Electrification in urban households should be
considered alongside and in conjunction with the
provision of other utility services (waste
management, water supply, roads etc.) so that an
integrated approach to the provision of services
can be promoted. This requires the formulation of
a prioritised area-based infrastructural investment
programme incorporating all services for low-
income households. One of the key elements of
this programme is to determine how, from a
financial point of view, such investment would be
funded and how the issue of affordability is to be
addressed.
The national electrification programme should not
to be seen in isolation from the usage of other
fuels by low-income urban households. These
households use a number of fuels simultaneously.
It is therefore important to provide them with a
choice of fuels.
The two important aspects to be considered in the
planning of a national housing and electrification
programme for the urban poor are therefore:
1. the consideration of electricity along with
other utility services and
2. encouraging this sector to use the most
efficient fuels for different end-uses by
providing safe and convenient access to
fuels other than electricity.
It is recommended that the preparation and/or
planning for the implementation of the national
electrification programme be complemented by
research work on the provision of other services as
well. It is further recommended that research be
conducted on the provision of safe and convenient
access to fuels other than electricity so as to widen
its choice and encourage the efficient use of
energy sources.
15.11 Energy efficiency and
transportation40
Research determinants should include the varied
considerations which reflect more accurately the
energy needs of the urban poor household sector.
These needs are not only about household fuels.
They include energy for transportation to travel
between origin (the household) and destination
(mainly the work place).
The government's proposed mass housing and
electrification programmes provide an opportunity
to include other energy-related sectors such as
transportation.
The transportation sector is also a large consumer
of energy which poses other environmentally
related problems to the country. There are
therefore two aspects of this sector which need to
be investigated. The two are by no means
separate but are concerns at different scales.
Firstly, at the micro scale, the issue of access to
energy efficient transportation by low-income
urban households needs to be investigated.
Secondly, at the macro scale, an environmental
impact assessment of the transportation sector
needs to be undertaken with a view to making this
sector more energy efficient.
It is recommended that access to energy efficient
transportation by low-income urban households
and energy efficiency in the transportation sector,
be investigated.
15.12 Thermal performance and
integrated design41
Improving the thermal performance of housing
structures is not necessarily a priority among
suppliers like Eskom and local authorities. National
building regulations and urban planning legislation
do not compel suppliers of housing products to
attend to thermal comfort. While information on
passive thermal design is abundant, it has not
been utilised very well in the design and
implementation of low-income urban housing
developments. Broader locational aspects such as
the soil conditions of land, which can make a
40 EDRC, Household Energy End-use, University of Cape
Town
41 EDRC, Household Energy End-use, University of Cape
Town
50
significant contribution to thermal comfort should
also be considered in thermal design.
Since the housing subsidy scheme is by far the
most important actor in the market it is obvious that
the market for energy efficient low-income housing
is most cost-effectively developed through the
regulation of this demand. This can be done by
setting national energy standards for low-income
housing financed through the housing subsidy
scheme via the National Building Regulations at
the national and provincial level.
But setting energy standards in low-income
housing alone will probably not be sufficient to
change the practices of the low-income
households as the users and the private sector
actors as the developers/ manufacturers/ suppliers
of appropriate energy efficient technologies for
low-income housing.
Energy end-use demand and consumption
patterns are considered at a scale which is suitable
for the formulation of national energy policy.
Climatic zones, for example, are divided into six or
three broad zones for this purpose. However,
micro-climatic conditions need to be studied very
carefully in order for optimal passive thermal
design to take place. Natural elements (sun, wind,
vegetation and so on) which should inform design
at this scale, differ from local area to local area.
Future studies on the improvement of thermal
performance and energy efficiency in the provision
of low cost housing therefore need to focus on the
following:
1. the development of pilot projects where
energy efficiency measures can be
introduced;
2. facilitative policies and legislation to
entrench thermal design in the provision of
housing;
3. new housing developments should be
targeted as models where thermal design
can be introduced, monitored and
evaluated;
4. broader (than the dwelling's structure)
planning issues like the siting of local
urban areas on land which is generally
suitable for urban development. These
and other concerns mentioned in chapter
three of this paper must be considered at
the very outset of the planning process;
and
5. the sensitivities of low-income housing
design to the natural elements prevailing
in local areas.
15.13 Education, capacity building
and skills training
Changes in regulation need to be supported by
awareness raising, knowledge development, and
sales promotions, which will ensure the
development of the supply side as well as the
demand side for energy efficiency.
Broad-based and participatory awareness
campaigns should be designed and implemented
throughout the subsidised housing sector in South
Africa. This intention is clearly stated in the
government’s Energy Efficiency Strategy. The time
is critical to start implementing the government’s
intentions and promises.
15.14 Revised Norms and
Standards
The section outlining the revised Norms and
Standards notes numerous issues that the revision
does not cover. Amongst others, the following
components are not noted:
1. Double glazing
2. Energy Consumption:
3. Solar Panels/Geysers allowing standby
electrical power if required
4. Compact Fluorescent Lamps
5. Solar cookers
6. Paraffin stoves and lamps
7. Metalwork, finishing, carpentry,
8. Sealing and weather-stripping of all
openings in the building
9. Plumbing, storm water, water supply
10. Insulating wrapping to water pipes
The Norms and Standards should be revisited and
amended to broaden the inclusion base.
15.15 A Case for Better Planning
Strictly speaking, the following small section is not
a series of recommendations, but part of an edited
transcript from the interviews. The Respondent
made a very good case for relooking the way in
which we view communities and it is important that
we all take note of the suggestions.
51
• We adopted an environmental policy five
years ago, which takes a critical look at
sustainable development. And while it is
used as a basis for the discussion, green
and brown issues are still not taken
seriously at the highest level. There is the
belief that development and
developmental sustainability are not
linked, but you need both. There has been
a great effort for 7-8 years to place these
strategies, but the message of the
importance of the natural environment
does not seem to be understood by the
“powers that be”.
• Fundamentally, we need to integrate
sustainability and sustainability
development means. It needs to be moved
to a sustainable livelihoods bag and not
only as a green issue.
• Starting to implement real policies is not
difficult. It just requires decisions to go that
way. The actual implementation of the
solar heater bylaws themselves should be
very simple. We tend to over complicate
things. Decisions are about a choice and
the things that flow from it are then easier
to implement.
• The historical context of environment is
seen as green. The environmental lobby
and environmental profession have been
retained in terms of the perception that
development and sustainability is
incompatible. This understanding has to
be changed.
• Another stepping stone is that historically
speaking; the people in positions of power
(i.e. City Managers) used to be engineers
and so were schooled in that particular
way of thinking. When alternatives are
suggested, they are often thrown out as it
is not being part of the mainstream.
• The current trend towards crisis
management as opposed to forward
planning means one cannot take a step
back and make reasonable long-term
decisions.
• Looking at the way that we have built
houses is stooped in the old way. We are
building terrible neighbourhoods because
we build houses not communities. Officials
and politicians are number crunchers and
only seem concerned with how many
houses are built, even though socially they
are not sustainable. These new structures
have a lack of community and lack of the
sense of place. Short-term crisis agendas
preclude long-term benefits.
• Urban sprawl does not build communities.
If we look at overseas we see that the
trend is toward urban density as this aids a
sense of community and enhances
sustainability.
• We need to consider:
o Access to transport
o Shared facilities
o We need to start living upwards
not outwards
• Cost of travel in an urban sprawl situation
also rises, while increasing the home
owners’ isolation and decreasing their
sense of community.
• From a geographical point of view, if urban
sprawl extends families will have no
access to quality recreation environments.
E.g. Living in Khayalitsha, you have
access to nothing those Cape Town
central offers.
• There needs to be a more equitable
sharing of the natural assets – nature and
recreational facilities – as a vast majority
do not have access to Table Mountain,
Clifton Beach, etc. Denser living will bring
people closer to some of the assets
• Urban sprawl is threatening biodiversity of
the city. Most of the endemism is rooted in
the Cape flats. There is direct competition
between global biodiversity competition
and providing low-income housing, and
the solution for this is directly related to
densification. If we retain the standoff
between the biodiversity and development
needs we won’t progress.
• Quality living environments are not only
about health. It is also important in terms
of sense of community and incorporation.
• People want to feel like the place that they
live in is a nice place to leave – they want
to feel proud of their surroundings. We
also need more parks, play spaces,
schools etc.
• We need to increase the sense of
responsibility on home owner level as
there still seems to be a ‘sit back and
blame’ scenario. Government can play into
52
 this role by implementing rewards, • We have been telling people that shifting
incentives and massive encouragement to mindsets comes down to:
home owners to participate. We need to o Increase individual responsibility
make it as easy as possible for people to o Power around your own house.
co-operate. We can start by simplifying Dislodge from the city council
rules and regulations and thus encourage responsibility
individuals to participate. o Trying to follow the USA and EU development
path which is a very
different development
model. We aspire to
resource use and
profit.
o There is no question of
the finiteness of
resources. There are
too many people on
the planet, and not
enough resources.
There is no longer any
question that it is not
sustainable. Why are
we following this path?

• Many people who

would like to
facilitate
development but
can’t do so
because the
system is too
cumbersome. If we
create mechanisms
for people to do
things for
themselves it
becomes far more
viable to envisage it
getting done.
Government should
be the overseer not the do-er. As We need to rethink and relook the approach.
individuals it is practically impossible. o Undo the tension that exists between
• We need to start shifting the mindset by environment and development agenda. They
making access to systems and facilities are developing mutually exclusive long-term
easier for those who are willing to co- agendas. We need to address how people
operate and making it harder for those really relate to the environment. The thinking
who resist. We could start by increasing needs to shift more towards a feeling that our
their tariffs in order to encourage their living space is as valuable as the Kruger Park.
participation.

53
16. BIBLIOGRAPHY& REFERENCES
A. Books
1. CSIR (Council for Scientific and Industrial
Research). 2000. Other Forms of Energy
(Chapter 12) from: Guidelines for Human
Settlement Planning and Design (The Red
Book). Edited by LM Austin.
2. Development Southern Africa, Volume 19,
No 5. 2002. Cost-benefit Analysis of
Energy Efficiency in Urban Low-Cost
Housing. Winkler, Spalding-Fecher, Tyani
and Matibe. Carfax Publishing.
3. UCT (Energy Research Centre, University
of Cape Town). 2006. Energy Policies for
Sustainable Development in South Africa:
Options for the Future. Edited by Harald
Winkler
4. UNEP (United Nations Energy
Programme) Riso Centre, Denmark. 2007.
Electricity Supply Options, Sustainable
Development and Climate Change
Priorities: Case Studies for South Africa.
Edited by Amit Karg and Kirsten Halsnaes.
5. Thubelisha Annual Report 2006/7
6. NDoH (Department of Housing) Annual
Report 2005/2006
B. Academic and Research Papers
1. USAID. (Wits, UP, EDRC UCT). 2000.
Environmentally Sound Energy Efficient
Low Cost Housing: Evaluation of
Performance and Affordability of
Intervention Technologies. Edited by D
Irurah.
2. CSIR (Council for Scientific and Industrial
Research). Programme for Sustainable
Human Settlements. 2000. Findings from
Scan of Innovative Technologies in Urban
Housing and Infrastructure Projects in
South Africa. Report No: BOU/c320.
Edited by Mike Napier.
3. Urban Green File, Issue 5. (IIEC) 2000.
Sustainable Housing.
4. World Bank Asia and Pacific Region,
2006. Heating and Building Energy
Efficiency (Mongolia). Edited by R.
Broadfield.
5. Photovoltaic Technology Pty Ltd (2008).
Energy Crisis in South Africa – Discussion
Paper. Prof Vivian Alberts (UJ)
6. Proven, Gordon. Experiences in Reliable
Household Electricity Supplies using a
Robust Small Wind Turbine as Main
Energy Source.
7. Steenkamp, IL. (University of Port
Elizabeth). Energy Effective Design in
Housing.
8. Olivier, AL. (Department of Mineral and
Energy Affairs). A Framework for the
Implementation of Energy Efficient
Building Design in the Low-Income
Domestic Sector.
9. Topp, C. (Energy Research Centre,
University of Cape Town).Improving
Thermal Efficiency of Low-Cost Housing in
SA.
10. Flex Your Power. 2003. Making the
Business Case for Energy Efficiency.
11. Energy Cybernetics / IIEC. 2002. Scoping
Investigation Report on Energy Efficiency
and Greenhouse Gas Mitigation Projects
for the City of Cape Town. Edited by LJ
Grobler and Willem den Heijer.
12. PDG (Palmer Development Group). 2004.
Developing a Profile of Urban Poverty in
the City of Johannesburg. Edited by T.
Mosdell.
13. SSN Aftrica (SouthSouthNorth) and REEP
(Renewable Energy and Energy Efficiency
Partnership. 2007. Creating a National
Financial Facility for Sustainable Energy
Upgrades in Low Income Housing in South
Africa. Emily Tyler.
14. Isandla Development Communiqué No 7.
2004 . N2 Informal Settlement Upgrade
Lead Pilot Project. F. Khan
15. Energy Saving Trust, UK. 2005. Series of
Articles around implementing energy
efficiency in homes.
16. US Dept of Housing and Urban
Development. 2005. Series of Articles on
Best Practices for Effecting the
54
 Rehabilitation of Affordable Housing. 6. Constitution of Republic of South Africa
Edited by David Listokin 1996
C. Brochures 7. DOH Housing Act. 1997 (DOH Housing
Amendment Bill, Social Housing Bill)
1. Agrement, South Africa
2. NDoH (Department of Housing). How do I 8. White Paper on Energy. 1998
get a Housing Subsidy? 9. DOH National Housing Code, Norms and
Standards. 1999
D. News flashes and newspaper articles
10. DOH Environmental Implementation Plan
1. News Release (Canada). 2003. Innovative
(EIP). First Edition. 2000
Technology in New Thompson Model
House. 11. NDoH Breaking New Ground Policy Paper
2. Housing in Southern Africa. November
2007. Breakthrough Model to Finance
Energy Efficiency Measures in Low-Cost
Housing.
3. SA Government. January 2008. National
Response to South Africa’s Electricity
Shortage: Interventions to Address
Electricity Shortages.
4. Mail & Guardian 11-17 January, 2008.
Eskom’s place in the sun. Jocelyn
Newmarch.
5. Star, January 23, 2008. Energy drawn
from Her Graciousness, Mother Nature.
Lebogang Seale.
6. Cape Argus, January 23, 2008. Blackouts
prompt scramble for renewable energy.
Mathabo Le Roux.
7. Star, January 24, 2008. How I cut
consumption and bills by 50%. Anna Cox
8. Saturday Star, January 27, 2008. Solar
energy breakthrough. Carvin Goldstone.
9. Star, January 29, 2008. What does Eskom
do now? Louise Flanagan.
E. Legislation
1. National Building Regulations: Guidelines
and Building Standards. 1977
2. South African Bureau of Standards
(SABS) Code of Practice
3. NDoH Housing Subsidy Programme. 1994
4. White Paper on Reconstruction and
Development (RDP). 1994
5. Macro-Economic Strategy: Growth,
Employment and Redistribution (GEAR).
1995.

55
17. APPENDIX 1: CONSULTATIONS
17.1 Interviews
A broad-based consultation process was followed,
through structured interview sheets – amended in
line with the focus and competencies of the
interviewees. A total of 18 interviews were
conducted, mostly on a face-to-face basis and
where that was not possible, the interviews were
conducted in a non-structured manner over the
phone and email. In addition to the structured and
non-structured interviews, numerous experts were
consulted and documentation and information
shared. Particularly helpful in this regard was the
Sustainability Institute in Stellenbosh and the
interviewee from the CEF Sustainability company.
The list of persons contacted is as follows:

Name Institution Interview Type

1 Astrid Wicht ACG architects Face-to-face
2 Bruce Malagas Thubelisha Homes Project Manager Face-to-face
3 Nazeer Rahbeeni Thubelisha Homes Project Manager Face-to-face
4 Charles Croese Thubelisha Homes N2 Gateway Face-to-face
Programme Manager
5 Craig Haskins City of Cape Town Communications Face-to-face
6 Emily Tyler Genesis Analytics – Carbon Credit Face-to-face
Specialist
7 Greg Olofse City of Cape Town Integrated Municipal Face-to-face
Environment Plan
8 Herman Potgieter JSA Architects Face-to-face
9 Saths Moodely Advisor to the National Minister of Face-to-face
Housing
10 Shireen Rosenberg City of Cape Town Environmental Face-to-face
Management
11 Harald Annegarn Department of Geography, Environment Face-to-face
Management & Energy Studies
(ENERKEY), University of Johannesburg
12 David Hancock GTZ Renewable Energy Division Face-to-face
13 Professor Phillip Lloyd Energy Research Centre Face-to-face
University of Cape Town
14 Mark Swilling Sustainability Institute Phone
conversation
15 Lisa Thompson-Smeddle Sustainability Institute Email exchange
and research
documentation
16 Professor Vivienne Alberts Photovoltaic Technology Intellectual Telephonic and
Property (Pty) Limited, University of documentation
Johannesburg
17 Carmeen Armstrong CEF Sustainability Face-to-Face
18 Joseph Leshabane DDG NDoH Phone
conversation

56
17.2 Interview Focus
Structured questionnaires and responses: In many instances, where respondents said the same thing, the
answers were collapsed into one Respondent. These are edited transcripts and no editorial licence was used.

1 To what extent has the government embraced energy efficiencies as part of the national and local
(municipal / metro) regulatory frameworks?

Respondent
Even if they have, energy efficiency white paper, the government has not thought about how it can be
rolled out. We should look at spheres of government and not tiers of government and government should
be seen as an ally and not a poor cousin.
Local government is better placed to promote E.E through service delivery and engagement of local
communities, through its own operations. It would be useful to direct dedicated funding in this regard and
to then monitor it to see what they are doing.
Local government does not require more people to do this, but a change of thinking. For instance, Cape
Town City Council can do this within their existing framework. Even though there is some resistance, it
can be done. With financial assistance and capacity building, the existing skills can be used. Should
there not be the capacity, then national government should look at what other avenues can be followed.
Respondent
There are strong feelings that government has not yet embraced available research and
recommendations into workable policy or legislation. There has been a comprehensive 200-page study in
2000 (funded by USAID) that resulted in zero policy changes since then. HA built the first Eco-House in
Soweto in 2000 and built 4 pilot eco-houses on Wits Campus in 2002. In partnership with Peer Africa,
400 energy efficient houses have just been completed in Witsands Atlantis W Cape (this is the largest
number of energy efficient houses built to date) and they struggled for 4yrs to get national, provincial and
local government buy-in and support. In spite of all of this, they finally succeeded in building 400 houses
with minimal community conflict (unlike N2 Gateway project which is apparently about to implode despite
intervention of the Deputy President).
Respondent
There is a strong feeling that nothing has been i.t.o. embracing the policy frameworks.
Respondent
I.t.o housing that we are involved with, we have not seen anything enforced. It seems like the issues is
always on the fringes; considered but not enforced. It seems as though E.E. is never a project
requirement. Investigating the options have never happened and never questioned, and the green lobby
has been consistently placated. At the moment, N2 gateway solar geysers have been on the cards for 2
years and nothing has happened. Nothing has been enforced, and no funding has been provided to
make sure that it happens. There have also been no incentives to home owners or communications that
if they do it, they will reduce rates, etc. There have been no incentives to the communities at all and it
seems that Thubelisha has not fully embraced it. The option is there to do it., but the onus is being put on
the developer to do it. If you do it however, you are on your own. It feels like the option is: Go the easy
route or go the green route. What is unfortunate about that is that the green route is harder. This is
because funding and education is problematic.
No, there has not been commitment to energy efficiency. We should have looked at what we are
experiencing with the electricity years ago.
By implementing these processes you can restore people’s dignity. They don’t have to bath in cold water.

57
 Respondent
There has been nothing real from the government. I have seen a little bit – before 2003 I saw them
bringing in community facilitators in Cape Town in a few communities with no effect. Since then I have
seen nothing practical. In terms of the bylaws in the City of Cape Town it is not very pertinent.
Respondent
The government is not embracing it at all and the current example is that EE only comes to the forefront
when there is a crisis. On broad environmental level is that none of it is new but there has been no effort
to change until a crisis hits. The government is only concerned with crisis management and is largely
driven by an unwillingness to change. To influence and drive change within a government organisation is
very different.

2 What gaps would you identify in this specific policy environment?

Respondent
There is an institutional gap between the policy of DME and how they translate it into action and other
government departments. This gap impacts on the relationship between institutions, partnerships and
how funding is directed.
It is important that local government and local communities partner with the DME on energy efficiencies.
The DME wasted more than 2 years on a bio-fuel strategy that has gone nowhere. It could have gone on
energy efficiency and shown a return by now. The focus should be on priorities and not on hobby horses.
Low cost housing should have a combination of renewable energy for long terms and short terms.
Respondent
Initial studies have shown that households can save R650 per year if their house was energy efficient.
Insulated ceilings, solar water heater with thermostat electrical back-up can be managed by themselves.
There needs to be additional study to monitor how the household behaviour can and/or needs to be
changed.
Respondent
Need to make it a condition for the basic subsidy that energy efficient features (as outlined in the Housing
Code and the NBR) are included and the NDoH needs to institute proper quality assurance as the quality
of most of the work/products in the low cost housing market are very dodgy. They had huge quality
control problems in Atlantis project.
Respondent
• Lack of regulatory content
• Lack of enforceability
• Lack of incentives – Botswana has a regulatory framework that says every RDP house has to
have a solar heater. For us to make major change we have to get into that level. This needs to
be approached from the top.
We also need to look at household insurance policies as a home owners’ content is attached to the bond.
More than half of the premium is to cover burst geysers. If you put on a solar heater and you put the tank
on the outside, there is zero risk to the contents of your house. There should thus be a saving. SA
produces about 60,000 geysers and these are designed to fail within 4 – 7 years (4 years at the coast)
where as a solar heater has a design life of about 20 years. The business incentive to mass manufacture
is taken away. Government needs to step into the insurance industry ambit to reduce this.
Respondent
If we are specifically talking hot water, the subsidy does not make provision for a geyser. It is an extra

58
 item. Lack of funding between the energy efficient need and the subsidy. At some level there has to be a
policy decision to say that the minimum standard of low cost housing moving forward must provide water.
Breaking New Ground must find new ways and improve people’s lives. Geysers should form a integral
part of the specifications. I.t.o provincial legislation, there is a lack of enthusiasm to promote energy
efficiency measures. The fact that we don’t know that it exists speaks to the fact that we don’t have the
drive for it.
Respondent
It is imperative that the town planning regulations start talking urban design and start enforcing energy
efficiency. There is nothing at the moment that addresses anything. There is nothing that talks about roof
overhangs. People talk about it but as far as I know, it does not appear anywhere. Gaps exist in almost
every aspect of the policy environment. Although there may be something on ceiling insulation, it is not
enforced. In the southern cape there is something called …. Condensation area and it is paid for over
and above the subsidy (Ceiling is aimed at condensation not insulation Southern Cape SCCCA).
Respondent
It is laughable that a critical issue such as global warming is still discussed in theoretical terms and that
there are still, in this day and age, people who think it is a conspiracy theory. How many of us think about
the gasses emitted through transport – airplanes and motor vehicles – alone?

3 What you would moot as the most important priorities that should form part of the regulatory
framework?

Respondent
• Part of the policy should be that all housing tender specs should contain mandatory regulations
• Units should be North facing
• Units should have insulated ceilings
• Units should rely on solar heaters for hot water provision
• Feasibility study to determine cost of off the shelf and economy of scale.
• DTI and poverty alleviation programmes can partner to convert geysers.
• If anyone gets a contract it should be mandatory to implement those regulations!
Housing subsidies need to be reviewed in terms of cost and benefit. Other departments could potentially
top up the subsidy, but for this there would need to be better synergy between departments. EPWP is by
and large under spent because of government inefficiencies.
Respondent
Cost and energy efficient features are most definitely needed, and an additional subsidy for ‘free basic
alternative energy’ for those not able to afford being on electricity grid. This would cover costs of basic
safe paraffin or ethanol appliances like cookers & lamps. EG Peer Africa could be contracted to
implement this in x number of houses. Atlantis houses have already been supplied with EE kettle,
hotplate or paraffin lanterns/stoves.
Respondent
Institute a capping system (different sectors would obviously have different caps) that uses monetary
fines to ensure that people stay within their allocated allowance. For residential users this would need to
be tailored for both ends of the user groups.
Respondent
One problem that we are facing is the Eskom policy of 60 amperage rather than 20 amperage – this

59
 means single plug and very little electricity. If you go over that, the demand becomes too much and it will
fuse. At the moment we look at 40 amps which is sufficient. If you talk about a geyser then 40 amps will
suffice. 60 amps is for a normal small business or a household with a freezer and a light in each
bedroom. The DME policy must change to allow for an affordable 40 amps system.
We could try fall in line with the free basic water policy. Eskom’s systems are not geared for 40 amps. We
could implement a system by which there is no connection fee for a 20 amps but R1200 fee for a 60
amps. Unfortunately we are not aware of studies to ascertain exactly how much a sufficient electricity
supply would be. Also what would the optimal amperage would be for the indigent to live sustainably. We
would need to determine the optimal amperage required to sustain a household of 6 people per month to
form the benchmark for a free basic electricity policy. When 20 amp was introduced it was for a 27 sq
meter house. Now we have 40 sq meters and more people in the house.
Respondent
• To achieve anything we would have to talk about the energy performance of a house.
• Setting targets for every house in terms of house energy performance
• Get every house plan to conform to energy efficiency targets
• It should not only be the house, but rather the whole town planning. We are designing urban
sprawls that are very energy inefficient. When planning the new layouts, we need to take
transport and other peripheral components into account
• There needs to be closer cooperation with local government so that these new components can
be enforced on the correct level.
• There needs to be better cooperation between the different ministries. Transport is one of the
hungriest energy components in the country.
• We should adopt a holistic approach to urban planning.

4 What amendments would you suggest for the current Housing Act? What gaps do you identify in
the Act?

Respondent
• EE should form a very clear component of the Act. It speaks about human settlements, but not
specifically energy efficiency, and the impact of energy poverty on human settlements.
• Body of work on energy poverty and the impact on household budget.
• Everyone in the housing sector should be working towards the DME target. The minimum
requirements for EE standards for low income housing should be in the Act. For low income
housing solar should be part of the package.
• Greater clarity through legislation is needed as at the moment the sale of electricity seems to be
to manage Eskom’s demand. At this point there appears to be no clarity whether there is an
energy efficiency agency responsible or whether this is Eskom’s responsibility.
• The proposed EE agency should be on a lower level to support local government. Operationally
they should be on local government level.
Respondent
A commitment to energy efficiency needs to be incorporated at all levels of housing legislation
Respondent
The Act makes provision in terms of housing delivery but it does not speak to energy efficient measures.
It talks to the process to get a house, but not materials for sustainability in energy efficiency. The Act

60
 should seriously address energy efficiency.

5 i.t.o the National Housing Code: how enforceable are the minimum norms and standards and how
does it relate to the housing subsidy? Is this practical?

Respondent
The current Norms and Standards are quite enforceable. Between the DTI and the NDoH, this is where
they can have the biggest impact. It should also be put in place that no further plans for construction are
approved unless they are EE compliant.
Building codes should be reviewed to include new regulations. This is currently done by the DTI and not
the NDoH. The building regulations should reside under the NDoH and not be with the DTI.
Any housing built with alternate materials should get certification and this costs approximately R15,000 –
R20,000 for this certification.
Building regulations are broader than just housing. It is about all construction and the impact on our
economy. Its about stimulating the economy and providing conducive living environment and a quality of
life and saving the natural environment. All of these have an impact on the family. We are neglectful in
our duty to help the family to understand the bigger context.
Respondent
The Norms and Standards are only enforceable if the subsidy is conditional and there are good QC
systems in place. The NDoH also needs to facilitate NECC bylaws that assist the indigent, and not only
rich communities.
Respondent
Subsidies should be for land and people should build their own houses. A few years ago SEE motivated
for ceilings to be included as part of the subsidies. This was related to damp and TB. It also reduced the
heating requirement. There is no reason why an extra few thousand for a solar heater without thermostat
should not be included in the subsidy. This is a very cheap option and installation costs are nominal. The
only thing that we need to do is leave it with the community member or householder to deal with it. We
cannot give a poor person a solar heater with a thermostat and expect them to pay.
Solar panels are quite pricy per panel and they are not very robust. However, they are quite portable.
These panels only appear to be cost prohibitive because our electricity is so cheap. If electricity would be
more expensive then the panels would look attractive.
Respondent
Not enforceable. This should happen on provincial level so that they are more involved.
Provincial government approves the Thubelisha plans and at no point have they asked for alternative
technologies
Provincial government should be given more powers to determine and dictate what should be done. They
and the city that approve the funding should have an energy efficient unit to review documents. At the
moment they don’t have the expertise and so should create these units as a matter of urgency.
Respondent
Someone should be assigned to ensure the alignment with practical application and housing policy. Not
only housing but also the energy policy. N2 is a pilot project to explore and the policy alignment is not
being well managed.
We are not effectively making use of this opportunity and what is subsequently happening is that
designers and contractors are not agreeing on the approach. Designers did the design and the
contractors changed it when commercial considerations took over. The minister was on site and also
suggested changes to the houses. It was then done according to the minister and afterwards we fixed up
61
 the money.

6 Generally, to what extent are the energy efficient considerations applied as set out in the NDoH
Environmental Implementation Plan?

Respondents 1 - 12
Never heard of it.
Respondent
Never use it although we are aware of it. We are dependant on international funders to fund our projects,
and there is great competition for the funding. The government needs to make more funding available for
energy efficient housing, as the current allocations in the budget are not earmarking energy efficiency as
a priority.
The DEA & DP on provincial levels approve the EMP after submission of the EIA. They then advise what
you can and can’t do. Nowhere do they ever encourage energy efficient measures to be put in place. It is
due to a lack of expertise.
Respondent
Not working according to the plan and I will be very surprised if anyone knows about it.

7 What routines are generally followed in terms of community-based approaches to energy

efficiency?

Respondent
The Atlantis development is brilliant case study in respectful community engagement. A LOT of time was
spent on lobbying/advocacy and educating community and they are all on board now.
Respondent
None, none and none is done on any Thubelisha Homes’ projects
At inception stage the requirements are defined and if energy efficiency has not been defined then the
community is obviously not informed. So, energy efficiency is not excluded, it is simply not included
because the design is not geared up for energy efficiency.
When you appoint someone, they have to be encouraged to look at issues holistically.
Respondent
There is nothing done with the community on energy efficiency. There is no interest in EE at this point.
There are people who have been on a waiting list for 20 years, and many feel they are being unfairly
charged by their landlords. Energy efficiency is not on the agenda for these people as it is just not a
priority.

8 What are the main constraints in your community-based approaches? And what do you think can
and should be done to improve this?

Respondent
To introduce sustainable EE in housing, it needs a lot of advance community engagement which takes
time but has major long-term benefits in terms of sustainability.
Respondent
Communication should be regulated. There have to be some rules. The more regulations on the housing
the better but this has to be policed.

62
 The communication processes do work. Did it for Kuasa because they kept the communities informed.
Kuasa has a very good communication stratergy.
Respondent
Education and communication are critical.
Respondent
People are angry for having waited so long. They are poor and they are demanding their houses and
many want to know how they get themselves on the right list and receive an allocation. There are
tensions between the ‘backyarders’ who are poor and the Xhosas from the Transkei.
To improve this we need to do a huge national consciousness raising. Perhaps the education system
should incorporate it?
The Eskom crisis gives an opportunity for a very high thrust into energy efficiency. Affordability questions
also look at the sprawl model. The units cost more than what they would have cost if the houses were
single dwellings. What the sprawl does is spread people and businesses are not viable except spaza
shops.

9 What practical measures would you suggest going forward to improve on your current practices?

Respondent
The Atlantis case-study is a brilliant success in terms of no community conflict – there were no waiting list
issues and all moved in peacefully. There was zero defaulting by the community on EE methodologies
Respondent
From planning stage there needs to be an understanding of what the energy efficient measures can be
put in place and a thorough understanding of the environment within which the project is being
undertaken. Case studies will help.
For N2, the challenge is that we don’t know our beneficiary community. We only know them once they
have been allocated a house. We have no contact with them at the planning stage.
Provincial housing provides consumer education. Eskom also provides consumer education. But neither
do it in terms of energy efficiency.
Respondent
• Awareness level: huge awareness creation starting with kids
• Quick fix is to outlaw the exclusive electric geyser tomorrow for any and all new houses. Look at
the example of the plastic bags: it was outlawed overnight and we survived.
• No more tungsten light bulb. Outlaw tungsten bulbs
• Relook the density issues. It may be more capital intensive in the short run but longer term it has
more cost and social advantages. Also energy saving advantages.

10 In terms of a holistic approach to energy efficient housing: how do you rate the current approach
in terms of sustainability, taking into account all aspects of energy efficient housing?

Respondent
N2 Gateway project has been a disaster in terms of community involvement. There is sever social strife
and the houses built way over budget (by Thubelisha). Deputy President tried to intervene and failed. “It’s
soon going to implode”. Also no EE features have been included yet

63
 Respondent
No current system in place
Respondent
It does not exist and we behave as if there is no energy issue

11 What would you rate as the most important components to ensure sustainability, e.g. solar
geysers, building methodology, etc.

Respondent
• Orientation
• Ceilings
• EE lighting
• NOT solar geysers at all

12 Do you use or consider the International Institute for Energy Conservation (IIEC)’s manuals and
for training communities and in your planning for sustainability?

Respondent
HA built the first Eco House with IIEC so has been very involved with them
Respondent 1 - 9
No, never heard of it.
Respondent
Never used it. Not a factor
Respondent
Used IIEC and they clearly outline what needs to be done. On line management level it was not a usable
source.

13 What would your solution be for indigent communities where solar heating is insufficient (dual-
power geysers, for instance)

Respondent
There are strong feelings about assisting those who cannot afford electricity –there is a great need for
safe paraffin or coal devices as well as solar cookers, ethanol lamps etc. The supply of these needs to be
part of a subsidy as ‘basic alternative energy’. He is currently in negotiation with NDoH and Eskom about
this as another option for those who can’t afford the ‘basic free electricity’ subsidy from Eskom.
Respondent
For now the list is fine but we are not building fast enough.
Respondent
• If Eskom does not change the amperage and the subsidy does not pay for the geysers.
Incentives should be provided to keep consumption down.
• Gas piped
• Free basic service

64
 • Have to break our dependency on Eskom
• Sliding payment scale for usage.
• Factor in the cost of the geyser as part of the meter installation and pay back over a long period
Respondent
At the moment they operate on cold water so, this will be a luxury that they have lived without.

14 In terms of the following energy efficiency components, how would you rate them in terms of
importance
Solar panels Orientation of the house
Solar geysers Building materials
Centralised manifold systems Roof overhang
Dual system of solar and electricity Ventilation
Transport Retrofitted ceilings
Proximity to work opportunity areas and amenities Insulation
Density
Respondent
All no-cost design features absolutely MUST be top of list. Solar panels and geysers are expensive, and
therefore not at all a priority for the indigent. Most of these products that have been tested in pilot eco
houses have fallen apart after 1yr of use and there is no technical support available.
Most people would choose partitions or ceilings or extra room before a geyser. HA feels strongly about
long-term effects of air pollution on public health – ‘externalities cost very high’. Currently air pollution
(due to firewood, coal, etc) in Soweto is double the highest danger level for 3 months of year – this is
very insidious, leads to lots of respiratory illness TB, infant mortality and ultimately low productivity.
Also 70% of EMS calls in shack settlements are fire-related, so safety is a HUGE issue – there is a need
for safer non-electrical EE devices and lots of community engagement. We need to ban smoke fuels
outright and build EE houses as a matter of urgency. He is sceptical of Mark Swilling straw-bale houses
(‘they face in the wrong direction’) and their relevancy in SA context (people want a ‘proper’ house) and
how feasible it is to take them to scale.
Respondent
The process was started 4 years ago in line with the Barcelona ordinance. At that point out of frustration
the only way to get permanent change was to rely on the regulatory mechanisms. People would not go
for renewables because the entry level costs were too high, and the banks were not interested at that
point in agreeing. Any new or retrofit has to have 40 – 50 % of water heating from a solar system. In the
last 2 years this has not gone anywhere, as the bylaw can only be applied in certain circumstances. You
have to change the national building code in order to enforce the bylaw.
Also did a green policy paper. Nothing happened. There should absolutely be a bylaw in terms of this.
Respondent
Priorities for New Houses:
• Orientation of the house
• Building materials
• Insulation
• Roof overhang
• Retrofitted ceilings
• Ventilation
• Density

65
 • Solar panels
• Dual system of solar and electricity
• Proximity to work opportunity areas and amenities
• Transport
Priorities for Existing Dwellings:
• Ventilation
• Retrofitted ceilings
• Insulation
• Solar panels
• Centralised manifold systems
• Solar geysers
Respondent
Priorities for New Houses:
• Proximity to work opportunity areas and amenities
• Transport
• Density
• Orientation of the house
• Roof overhang
• Insulation6 Building materials
• Retrofitted ceilings
• Dual system of solar and electricity
• Solar panels
Priorities for Existing Dwellings:
• Density
• Dual system of solar and electricity
• Retrofitted ceilings
• Insulation
• Solar geysers
• Solar panels
• Centralised manifold systems
15 In terms of the above list, which, if any, by-laws exist that can enforce these components.

All respondents said ‘no’

16 If no bylaws exist, what do you think can and should be done to put pressure on the authorities to
take this seriously?

Respondents
• Needs to come from the National DOH and be filtered down via workshops etc
• Legislation is urgent
• Penalties for non compliance
• Eskom is now doing it for us. They will have to listen.

17 Have you done a cost-benefit analysis in the low-cost housing sector between houses built with
and without energy efficient components? If so, is this study available?

66
 No comprehensive studies have been done that we know about. All respondents had the same response.

18 What will be the implications of including energy efficient measures on the housing subsidy and
other financing mechanisms?

Respondent
• Through the EPWP (Extended Public Works Programme) we can train people in energy
efficiencies as service providers – to put in ceilings, repair and install geysers, manufactures
heaters, etc. The initial input would be the same as paying someone to sweep the street.
• Also building houses that are efficient.
• Investigating wind turbines for communities.
Respondent
None
Respondent
Carbon credits
Respondent
Will need to increase the subsidy by the average cost of putting the measures in place. We can talk
about a 100% increase of more if we look at higher densities, but it will be beneficial in the long run.
Facts and figures will back this up.

19 Can you supply me with the general costing of your current low-cost housing per unit and a
costing per square meter?

Respondent
We will need a pump to get warm water out and this will not work in low-income environments
Solar heating may not work in the Cape because of the rainy weather in winter. It should be possible in
summer rainfall areas but this depends on rainfall.
Only 2 respondents had any costs and these were noted in the main body of the document

20 Do you have component costs pertaining to retrofitted ceilings, solar panes, solar cooking units,
energy efficient lighting and solar geysers?

Solar voltaic is 10 times more expensive than current electricity costs, but saves the grid in the long-term
so it is good as a supplementary measure to prevent outages in industry.
The available costs were noted in the main body.

21 What finance mechanisms exist for the indigent beyond the subsidy that will give them access to
alternative technologies

Respondent
There is quite a bit of scepticism of the value of carbon credits in a low-cost housing context. The feeling
is the verification process is very expensive, there are too many middle-men taking a cut, and ultimately
the money that the community gets is ‘peanuts’ and only becomes viable on a macro scale (e.g. Sasol
Gas).

67
 Respondents
None
Respondent
None exist at this stage. However it can be very simple if Eskom finances it. If you do your prepayment
meter, we can include the capital cost. This solar geyser cost can effectively be recovered through the
meter over a longer mortgage period.

22 How do you interact with agencies such as :

• SA national energy research institute
• Central energy fund and its new energy efficiency agency
• Enerkey project
• PEER

HA is Enerkey Project and works closely with Peer Africa, GTZ, Eskom and NDoH. Currently advising
Eskom re: latest legislation around solar subsidy – only will benefit middle/high income communities.

23 What is your opinion on solar geysers? My understanding is that the Cape Town bylaws will not
actually target the indigent, but rather middle-income households. Do you agree?

The reality is that the indigent live with cold water and thus the target is middle income. Targeting the
indigent will not have much of an effect on overall South African energy efficiency. For them it is
improved livelihoods. Politically it is the right thing to do but practically, middle income communities are
the target market for this. Handing out any form of electrical geyser / solar to low-income homes at the
moment, we are countering energy efficiency. At the moment they have nothing and now we give them
geysers? Cold water is totally energy efficient.

24 What is your opinion of batch-filled solar geysers? Can it work?

Respondent
Combined with rain water harvesting. But what about the periods of bad weather. What percentage of the
year do you not have sunshine and what cost implication does it have?
Respondent
This should be further explored as an appropriate technology.

Additional comments – Carbon Credit Debate

Respondent
Carbon credits is contentious and I am not sure that the amount of effort is worth it. However, there is an
opportunity that we should investigate. Three years ago the programmatic approach came out which
means that where a government or private sector implements a policy initiative achieves a reduction in
emissions, it can be registered as a project. For instance, the NDoH states what they plan to achieve
over the next 20 and every house that is rolled out gets a subsidy to implement the policy. Over a period
there could be a return to the department which could be used for more houses. This is part of the clean
development mechanism (CDM) and has potential of national roll-out. This has not been done anywhere
in the world.
Ethically it is about how we want to play this game. How do we tap into the benefits of this mechanism.
Industrial companies still have to deal with 50% of their emissions.

68
Respondent
Carbon credits: additionality criteria apply and every submission has to contain a disclaimer stating: “this
project cannot go ahead without the cc. If we don’t get the money the carbon footprint will be x if we do
get the money the carbon footprint will be y.”
Depending on how the baselines are structured, you may not win anything. If the indigent abuses the
electricity quota there may not be credits to trade.
CDM is relevant and can work only when the south (as in Africa) can play in the north field (as in Europe
and the USA). If there is a net benefit to us in terms of the sustainable development I would prepared to
swallow the moral high ground.
Respondent
Carbon credits are window dressing. It is an easy way to continue without addressing the issue. E.g. for
the climate change conference 10,000 delegates flew to the conference in Bali in aeroplanes that spew
out gasses. The thinking is that we can continue doing that we do without confronting the actual issue.

Additional comments – General

Respondents – Communication
Thubelisha is busy with working on the messages to do community liaison. We must gain people trust by
hearing what they say and then construct our communication accordingly.
Respondents – Sustainable Living
The current bylaws for solar geysers target the top end of the market because solar power is expensive.
Thus, passive solar design is important.
It is important that for low income areas we seriously consider household level is rainwater harvesting
and recycling of waste.
There are many debates on green services technologies and there are many successful green projects.
We should take note of what has worked for others instead of reinventing the wheel all the time. A good
example is on the website of Michael Mobbs who has a completely green house in the middle of Sydney,
Australia.
Respondent - Incentives
We need to use the carrot and stick method. There is obvious value in the economic incentive to do
things differently. It creates another challenges for big business to find ways to do things the way they
had always done it. The financial pinch is simply not hard enough to incentivise any change.
Respondent - Systems
We need to institute simple organisational measure to make processes work.
Respondents - Policies
Major problem in policies – BNG and others. If I read it as a practitioner then I think it can work, until I try
to implement it. Nobody implements it as the systems are too complicated, the subsidies too low and the
incentive to make it work is simply not there.
How do we create continuity in the communication channels to make it work?
Get real about the appropriate technologies. Understanding what integration means in terms of achieving
sustainability.
Respondent – General and Diverse
• We don’t have the capacity to pull things together form policy formulation to implementation. The
Minister decides on a process and the next day she wants houses built. She has no clue as to

69
 the processes that everything is subjected to. Her lack of understanding of what the process
entails is simply absent. The process should be clarified and the implementation should be
tailored to this.
• A few years ago I could submit plans quickly but now it can’t work as their processes are not in
place. Our mindset is too narrowly focused.
• We are all subjected to grand-scale institutional chaos. Technologies information is all there for
sustainability but because of the lack of systems and the endemic chaos the available
information is not used.
• Why does the NHBRC exist as they don’t help at all? Why do we have to get an alternative
building method approved? The industry is ruled by cement and bricks manufacturers. They do
not support change. We are being exposed for our double standards.
• Environmental sustainability needs the will to do it. Technology is not the issue.
• We have to decentralise and appoint people who understand the issues. Appoint people on
grassroots level. We face problems viz poverty. There is no apparent acknowledgement of scale
and context. It is all about government methodologies and subsidy regimes. One size fits all. Our
systems don’t have integrity and discretion.
• Let’s deploy teams to look at each project in its context. We should have the flexibility say the
limitations in terms of the rulebook should be changed.
• Rulebook should be a guideline. Engineers should take on responsibility as a professional and
be allowed to break the rules and design as first principle. Through the professional association.
• The regulatory framework should be flexible and accountable (through professional bodies)
rather than tightening the authority at centralised level. Central control is our problem to
discretion and flexibility. A socio-political obstacle in the misbelieve that we know everything on
central level.
• There is no integrity between Cape Town City Council and province and national ministry. When
you approach a project do it in this way and within the socio-political context. It should merge and
simple outcomes amidst the complexities. Interaction of all the different components. One size
fits all and chasing huge numbers does not work.
• Processes to get people around the table is very exhaustive. We need to be able to get our
agendas aligned, and political hidden agendas should be opened up.
• Fewer people and smaller organisations that can be deployed to projects. We found that you
only need a few people to do a lot to do a lot of things.
• Energy saving advices – it had not been done. In real projects – what the Minister has to do is to
establish systems with integrity. The policies can be perfect but the way in which it is
implemented is the same as 20 years ago. Is it the same systems or is the interpretation the
same?
• My biggest fear is that I don’t have faith in the people between me and the level above me – I
want to do it myself. I have lost faith in the system.
• Outsource all implementation of housing. The Minister must exhaustively test the research on
which policy is based and which leads to a regulatory framework.
• Flexible regulatory framework. This should allow for discretion as to the subsidy levels, size,
technology applications.
• Implementation should be outsourced
• Link the grassroots project implementation level to the top level on a very short reporting line.

70
 Not the long process as now.
• How do we test that the technology is the right thing at the right price in the right environment?
• This applies to subsidies as well. How do we know that we are building the right thing for the
right reason? How do we structure the finances to fit the right environment?
• Simply the devolution of power, reporting lines and roles and responsibilities. Implementors at
the bottom should be able to take responsibility.
• We need to curtail business ruthlessness. Regulatory framework should give guidance. E.g.
realign the NHBRC to fit in with BNG.
• Identify priorities for implementation in terms of technologies and sustainabilities and
possibilities. Understand what the requirements will be on the priorities and the timing of each.
You want to shift the expectation and understanding from where it is currently to a more
sustainable future. Change the system thinking. Follow through with implementing one of two
elements. E.g. solar panels as there is general agreement that it will make a difference. What we
tend to do with policy is that we elaborate on all the things and the vastness is intimidating and
then nothing happens. Build capacities around specifics to streamline implementation.
• Misalignment between subsidy and expectations. Everyone that implements have to cut and trim.
Flexibility as an incentive.
• Have a set of guidelines. If you want to move outside of them then you can motivate.
• What do we change for max impact?
• Propensity to put the cart before horse has created anguish. Opportunism rules. It makes well
meaning professionals inefficient.
• Clear diagrams of what we want to achieve and get buy in. contextualise our implementation to
suit the need of the households. Different size houses for instance. On Ministerial level use the
input of technical advisors with appropriate qualifications.
• Role of province: problem is that province is as chaotic as the rest and they seem paralysed.
• Context and scale informs housing decisions. Cannot approach all housing problems the same.

71
18. APPENDIX 2: SUPPLIERS
18.1.1 List of low cost solar water heaters42

Delivery Price
Company Description Guarantee
time (excl vat)
1. Solardome SA Evacuated tubes 5 years 3 months R 2 350.00
- 150 litre porcelain coated steel tank
2. Sonpower Evacuated tubes 5 years To be R 2 007.49
- 100 litre epoxy tank determined
Evacuated tubes 3 years 2 months R 1 643.71
- 100 litre stainless steel tank
3. ITS solar 12 evacuated tubes 5 years 8 – 10 weeks R 2 880.00
- 100 litre fibre glass tank
4. Sun power Evacuated tubes 5 years 8 weeks R 2 410.00
- 100 litre fibre glass tank
5. Gilder geysers - 100 litre low density polyethylene 1 year 3 months R 1 400.00
system, tanks and pipes
6. Atlantic solar Flat plate collector 5 years 8 weeks R 2 865.00
- 100 litre fibre glass tank
Evacuated tubes 5 years 8 weeks R 3 376.00
- 100 litre fibre glass tank
7. Frantel distributors Evacuated tubes 8-10 weeks R 3 500.00
- 100 litre stainless steel tank
8. Extenda summer Flat plate collector 5 years N/A R 4 430.00
- 100 litre fibre glass tank
9. Solar max Flat plate 5 years 8 weeks R 5 899.00
-100 litre extreme geyser
10. Solar beam - 55 litre solar “hot dog” flat plate 2 years 1-2 months R 2 020.00
collector
- 100 litre steel tank with sacrificial 5 years R 6 557.00
anode
11. Sun tank Flat plate collector 5 years 1 month R 6 532.00
- 100 litre stainless steel tank with
sacrificial annode
12. Solien 18 evacuated tubes 5 years 1-2 months R 7 128.00
- 100 litre stainless steel tank

18.2 List of other suppliers

Company Contact person Tel
Solar 2000 Fritz 011-3974530/1
Sun hot solar Fazli 023-34 24020
Frantel distribution Terry 012 -804 6664
Plumgaurantee Ryan 021-8838610
Double D solar panels David 021 -7617602
Bitol technologies David 021-9493482
Rand transmission company Chris 011-6218300

42 Sustainability Institute, Lyndoch, Stellenbosch 2007

72
19. APPENDIX 3: SOLAR WATER HEATING PRODUCTS

19.1 Solardome SA 19.2 Sonpower

Contact details Contact details
Le Roux Smit, 18 Stoffelsmit street Wesley Unit 4,
Mechanical Engineer Plankenbrug Tel: 021 556 9244 38 Killarney Ave
Tel: 021 88 66 321 Industria Fax: 021 556 9248 Cape Town
Stellenbosch 7600 Email : sales@sonpower.co.za Killarney Gardens

Product Product

Model Area Diameter Length No Volume

(L)
SPO- 1.95 47mm 1500mm 18 100
470- m2
47/1500-
18
Model QBJ1-115-1.91-0.05-A6
Inner tank Steel coated with
porcelain, thickness
1.50mm 19.3 ITS solar
Outer tank Color coated steel, Contact details
thickness 0.41mm
Thermal insulation Polyurethane foam, Riaan 11 Bayside village
thickness 60mm Tel: 083 321 6287 Pintail road
Fax: 086 505 0707 Somerset West
Supporting stand Color coated steel,
www.its-solar.com South-Africa 7130
thickness 1.20mm
Vacuum tube ø55-1800, 14 pcs Product: No additional information
Capacity (liter) 115
2
Aperture area (m ) 1.91 19.4 Sun power
Working pressure 0.05 Contact details
(Mpa)
Overall dimensions 1390 × 1668 × 1785 Robin Cape Town
(mm) Tel: 021 5108786 / 0861 468
786
Fax: 0866115521
www.sunpower.co.za

73
Product: No additional information 19.7 Atlantic Solar
19.5 Frantel distribution Contact details
Helmut Hertzog 8 Boldcon Rd
Contact details
Tel: 0861363749 Strand, Western
Terry 113 Fascia St Fax: 086-619-4881 Cape
Tel: 012 804 6664 Silvertondale Email: info@atlanticsolar.co.za South Africa 7129
Fax: 012 804 6961 Pretoria
Email: frantel@absamail.co.za
Product: No additional information Product

19.6 Gilder Geyser

Contact details
Contact Person: Brian Gilder Gauteng
Tel: 0829418467
briangilder@gmail.com

Product

19.8 Solar max

Contact details Location
Contact Person: 11th Avenue No. 4
Tel: 028-271 5172 Kleinmond
Fax: 0866 570 374 Western Cape
Same product as Extenda Summer

Tank material Low density linear polyethylene

(UV stabilized ) any color
Tank and 100 liter, excluding capacity
heating area available in heating pipe s
volume
Inlet 15mm pressure assisted float
valve
Outlet 20mm or 15mm pipe tail or
male/ female screw
Pressure Open vented
rating
Performance Average Max temperature
of geyser around 55 °C on sunny summer
days and 38°C sunny winter
days

74
19.9 Extenda Summer
Contact details
Chris
Tel: 021 851 8562
FAX: 086 695 6025
www.extendasummer.co.za
19.10 Solar beam
Contact details
Contact Person: Graham
54 Drama Street Tel: 031 5639585 480 North Coast Road
Somerset West solarbeam@webmail.co.za Briardene, Durban,
Western Cape KZN

Product
Product

Length 2,100mm
Width 340mm
Mass 40Kgs
Volume 55l
Pipe 2 × 22mm (3/4)

Supplied by extreme geyser

Capacity 100l
Height 480mm
Width 460mm
Length 1147mm
Weight 19kg
Element 2kW

Size 100l
Insulation 55mm closed cellular, non
biodegradable polystyrene
mounded jacket (K- factor
0,036 W/m2.°C)
Outer casing Galvanized sheet
Electrical element Fitted to each other for back-up
and thermostat heating, so no other electrical
geyser is required

75
19.11 Suntank 19.12 Solien
Contact details Contact details
Dieter 48 Paarden Island Melissa 322 Erica Road
Tel: (021)510 5754 Road Tele/Fax: (044) 877 1268 Wilderness Heights
Fax: (021)510 5733 Paarden Island info@solien.co.za 6560
email: info@suntank.com Cape Town

Product
Product

100l is similar, but smaller in size

Cylinder material Stainless steel for high

(100l) pressure/temperature
application. Grade:
1.4509. 1.5mm
Insulation High density polyurethane
External casing Aluminum
External ends UV protected fiber
reinforced resin
Working pressure 400Mpa
Diameter 570mm
Length 741mm
Configuration ** Horizontal
Inlets/ outlets ¾ BSP female
Heat exchanger N/A
Weight empty 35 kg
Weight full 135kg

76
20. APPENDIX 4: COSTS ASSOCIATED WITH ENERGY EFFICIENCY
MEASURES
The following information was gleened from = 0.59 L (at a density of 870
modelling energy efficiency in RDP houses using a kg/m3)
software package called “Design Builder.43 A system efficiency of 95% is assumed to result in
a the daily demand of 0.54 kg
20.1 Energy Cost Cost of Paraffin is R 5.35
Paraffin heating cost = Demand [L] x Cost [R/L]
= 0.59 x 5.35
20.1.1 Electricity as an energy source
= R 3.16 / day
The cost of electricity is estimated at R0.40/kWh Paraffin annual cost = R 284.40 / annum
It is assumed that heating is needed for 90 days
per year with a daily requirement of 6.55 kWh. 20.2 Payback Periods
Electricity daily cost = Energy [kWh] x cost [R/kWh]
20.2.1 Ceiling cost
= 6.55 x 0.4
= R2.62 The cost of 6.4mm gypsum plasterboard is R
Electricity annual cost = R238.50 (90 days) 91.00 (3 m x 1.2 m) as obtained from Federated
Timbers, Stellenbosch (27 September 2007)
20.1.2 LPG as an energy source Size of plasterboard required = 5.52 m x 4.92 m
The average heating value of LPG is 50.35 MJ/kg = 27.158 m2
which equals 13.98 kWh/kg. = 28 m2
No plasterboards required = 28/3.6
Weight per day = Energy [kWh] / Heating Value = 7.778
[kWh/kg] ≈8
= 6.55 / 14 Total cost of ceiling board = 8 x R 91.00
= 0.468 kg
= R 728.00
If the system efficiency is 95% the daily demand
would be 0.493 kg The labour cost of fitting the ceiling is estimated at
The cost of gas was obtained from Flandria Cycle R 400. This results at a total ceiling cost of R
Shop on Stellenbosch on 15 October 2007 as 1128.00.
R 730.00 for 48kg.
This results in a LPG price of R 15.20/kg 20.3 Payback Periods - All
LPG heating cost = Weight demand [kg] x Cost A simple payback period formulae is used
[R/kg] Payback period = Intervention Cost / Savings due
= 0.493 x 15.20 to intervention
= R 7.50 / day
The payback periods for using the different fuels
LPG annual cost = R 674.00
are listed below:
20.1.3 Paraffin as an energy source Fuel Electricity LPG Paraffin
Ceiling cost
The average heating value of LPG is 46 MJ/kg
of
which equals 12.78 kWh/kg.
R1,128.00 4.7 yrs 1.7 yrs 4.0 yrs
Weight per day = Energy [kWh] / Heating Value payback
[kWh/kg] = 6.55 / 12.78 time
= 0.513 kg
Ceiling payback time for various heating fuels

43 Gariseb G.C, Energy Efficient Housing, Centre for

Renewable and Sustainable Energy Studies, November 2007

77
21. APPENDIX 5: CHIEF TECHNICAL ADVISOR - TERMS OF REFERENCE
21.1 Background
The National Department of Housing received a
funding commitment from the Danish International 2.
Development Agency (Danida’s) Environmental
Programme for a project on the Mainstreaming of
Energy Efficiency in Low Income Housing.
The project seeks to integrate the aspect of energy
efficiency within the low-income housing sector.
The Project Document identifies as the main
development objective of the project “the need to
test energy efficient technologies – particularly
solar water heating - in approximately 2,000
dwellings in the N2 Gateway Project and through
the lessons learnt, support the NDoH’s national
mainstreaming of energy efficiency measures in
the low income housing market”.
The original Project Document (2003) has been
rewritten to reflect a more practical, workable and
user-friendly approach to energy efficiency in low-
income housing. The Project Document explores
energy efficiency as a holistic approach which
includes appropriate energy saving technologies
and products. It furthermore appraises the existing
policies, regulations and norms and standards and
makes recommendations to enhance the focus on
energy efficiency in the current legislative and
regulatory environments in line with the
Comprehensive Plan for the Creation of
Sustainable Human Settlements (also known as
Breaking New Ground Strategy (BNG)).
It is recommended that the project be executed in
three distinct phases:
1. A Pre-project Phase during which an
Implementation Plan will be developed
and finalised. All necessary components
will also need to be put together for a 3.
participatory community engagement
strategy and programme.
2. A Pilot Phase during which affordable
technologies are selected, implemented
and monitored on the N2 Gateway Project,
and during which time period the
community engagement will be finalised in 4.
the project.
3. An Appraisal Phase during which
technologies applied in the Pilot Phase will
be evaluated, and broad guidelines
prepared for dissemination in the sector.
The Chief Technical Adviser: Scope of
Work / Responsibilities
An external Chief Technical Adviser will be
appointed on a contract basis for the duration of
the project and will be expected to give input and
guidance on all aspects of the project during its full
implementation cycle. The CTA will be responsible
for the co-ordination of the project and will assume
oversight responsibility for all consulting services
input into the project.
The CTA will in particular:
1. Develop the Project Implementation Plan
including all technical aspects, budgets,
specifications and reporting to the appropriate
structures;
2. Develop the identification of appropriate
energy efficiency technologies and
approaches;
3. Devise the Implementation Plan for the energy
efficiency pilot without adding to the overall
project cost;
4. Oversee the implementation of the project;
5. On an on-going basis, record the lessons
learnt, processes followed, recommendations
and strategies developed;
6. Engage with Thubelisha Homes’ Project
Managers;
7. Quality assure all work to ensure that the
project objectives and outputs are successfully
achieved.
Reporting
The CTA will report on all aspects of the
implementation of the project to the PSC through
his/her submission of quarterly reports pertaining
to project progress reports, workplans and
budgets.
Qualifications
The CTA will have the following minimum
qualifications:
1. Ten years experience of development
 work related to low income housing and
energy efficiency in a broad sense.
2. A degree or an RPL equivalent in the built
environment
5.
3. Previous management experience in
development programmes will be an
advantage.
Companies in the field of energy efficiency and/or
low-income housing are invited to submit the
credentials of an individual in their employ as a
secondment to this pilot project which will focus on
the mainstreaming of energy efficiency in low-
income housing on the N2 Gateway Project, Cape
Town. The secondment will be on a flexible basis
for the duration of the project, anticipated to be for
no longer than a period of 12 months.
Information and Documentation
For further information concerning these
Terms of Reference, contact
Ms Annie Orgill
Thubelisha Homes
Telephone: 011.351.7900
Email: annieo@thubelisha.co.za
Danida

Document Researched and Prepared by