Fund Name

Energy Resilience Transition Fund (ERTF)

Agency

IDC

Type

Loans & Equity

Sector

Renewable Energy

Summary

The MCEP Energy Resilience Transition Fund (ERTF) is a sub-fund of the Manufacturing Competitiveness Enhancement Programme (MCEP), administered by the Industrial Development Corporation (IDC). Its primary objective is to support South African companies that have been affected by load shedding and wish to transition to alternative energy sources to maintain their operational continuity.

Qualifying investments include solar photovoltaic (PV) systems, inverters, battery storage, and other energy efficiency interventions. The adopted solution must be of sufficient scale to keep the company largely operational during rolling blackouts — minor or token installations will not qualify.

Funding is structured as interest-free debt for a maximum term of 8 years, with a maximum investment size of R15 million per company. The total funding limit across all MCEP sub-funds is R30 million. Importantly, generators are explicitly excluded from eligible investments.

The fund is deployed through two channels: Direct Funding to individual companies affected by load shedding, and Wholesale Funding to an ESCO (Energy Services Company) that will in turn fund multiple affected companies.

Applicants — whether individual companies or ESCOs — must be at least BBBEE Level 4 (or reach that level within 24 months of approval), must commit to no retrenchments for the duration of the facility, and must secure at least 50% leverage funding from the IDC.

Who this is for?

  • South African manufacturing companies affected by load shedding that wish to adopt alternative energy solutions
  • Energy Services Companies (ESCOs) that will fund multiple load-shedding-affected companies through a wholesale channel
  • Applicants must be located in South Africa
  • Applicants must be at least BBBEE Level 4, or commit to achieving that level within 24 months of approval

What support/funding you can get

  • Instrument: Debt (loan)
  • Pricing: Interest-free
  • Maximum investment size: R15 million per company
  • Total MCEP sub-fund cap: R30 million across all MCEP sub-funds
  • Maximum term: 8 years
  • Leverage requirement: At least 50% of funding from the IDC

What you can use it for?

Funding may be used for alternative energy solutions that allow a company to remain largely operational during load shedding. Eligible uses include:

  • Solar photovoltaic (PV) systems
  • Inverters
  • Battery storage systems
  • Other energy efficiency interventions

Excluded use: Funding is not provided for generators.

Key requirements and conditions

  • Support is for companies affected by load shedding adopting alternative energy solutions (solar PVs, inverters, batteries, or similar interventions)
  • The energy intervention must be meaningful — the company must be able to remain largely operational during rolling blackouts
  • The applicant company must be located in South Africa
  • Applicants (both individual companies and ESCOs) must be at least BBBEE Level 4, or achieve that level within 24 months after approval
  • No retrenchments for the duration of the facility
  • At least 50% leverage funding from the IDC
  • Generators are not eligible for funding

How the application works

Applications can be submitted to the IDC directly. The fund is deployed through two channels:

  • Direct Funding: A company affected by load shedding applies directly to the IDC for funding towards its own alternative energy solution.
  • Wholesale Funding: An ESCO applies to the IDC for approval to fund multiple companies that are affected by load shedding.

Applicants should contact the IDC to initiate an application and confirm eligibility. The IDC will assess the application against qualifying criteria, including BBBEE level, the meaningfulness of the energy intervention, and the no-retrenchment commitment.

What to prepare before you start

  • Proof of South African company registration and location
  • Current BBBEE certificate (or plan to achieve Level 4 within 24 months)
  • Details of the proposed alternative energy solution (type, scale, supplier quotes)
  • Motivation demonstrating that the intervention will allow the business to remain largely operational during load shedding
  • Financial statements and business plan
  • Confirmation of no planned retrenchments for the duration of the facility
  • Details of other funding sources (given the 50% IDC leverage requirement)

Am I a fit for this particular fund?

You likely qualify if:

  • Your business is located in South Africa and is in the manufacturing sector
  • Your operations have been disrupted by load shedding
  • You want to install solar PV, batteries, inverters, or other energy-efficiency solutions
  • The proposed energy solution will allow your business to remain largely operational during blackouts
  • You are BBBEE Level 4 or can commit to reaching that level within 24 months of approval
  • You will not retrench staff for the duration of the facility
  • You can access at least 50% of funding through IDC leverage

You likely do not qualify if:

  • You want to fund a diesel or petrol generator
  • Your business is not located in South Africa
  • Your BBBEE level is below Level 4 and you cannot commit to reaching it within 24 months
  • You plan to retrench employees during the loan period
  • The energy solution proposed is minimal and would not meaningfully keep the business operational during load shedding
  • Your total MCEP funding (across all sub-funds) already exceeds R30 million

Quick facts

Overview

  • Agency: Industrial Development Corporation (IDC)
  • Programme: Manufacturing Competitiveness Enhancement Programme (MCEP)
  • Product name MCEP – Energy Resilience Transition Fund (ERTF)
  • What this is: An interest-free debt facility providing up to R15 million to South African companies to adopt alternative energy solutions and remain operational during load shedding.
  • Geographic scope: South Africa (national)

Who this is for

  • Eligible applicant type: Manufacturing companies affected by load shedding; Energy Services Companies (ESCOs) funding multiple affected companies
  • Sector focus: Manufacturing
  • Included sectors: Manufacturing and energy efficiency across manufacturing sectors
  • Business stage: Start-up, Growing Business, Established

Type of support

  • Is financial support provided: Yes
  • Support form: Interest-free debt (loan)

Funding parameters

  • Purpose of funding To support companies affected by load shedding to adopt alternative energy solutions (solar PV, inverters, batteries) so they can remain largely operational during rolling blackouts
  • Eligible costs: Solar photovoltaic systems, inverters, battery storage, other energy efficiency interventions
  • Ineligible costs: Generators
  • Maximum funding amount: R15 million per company (total MCEP sub-fund cap of R30 million across all MCEP sub-funds)
  • Pricing: Interest-free
  • Maximum term: 8 years
  • First drawdown condition: Not specified
  • Fees: Not specified

What the support can be used for

  • Eligible use of support: Solar PV systems, inverters, batteries, and other energy efficiency interventions that allow the company to remain largely operational during load shedding
  • Ineligible use of support: Generators

Funding structure

At least 50% leverage funding from IDC

Business support

  • Support provided: Interest-free debt funding up to R15 million for alternative energy solutions
  • Business support cap: Business development support provided at a maximum of R3 million per applicant

Information you will need to provide

South African company registration, BBBEE certificate (Level 4 or plan to achieve within 24 months), details of proposed energy solution, financial statements, business plan, no-retrenchment commitment

Key requirements and conditions

Wholesale channel requires an ESCO to fund multiple load-shedding-affected companies

How it works

  • Application route: Apply directly to the IDC; or through an approved ESCO (wholesale channel)
  • Assessment focus: Meaningfulness of energy intervention, BBBEE compliance, no-retrenchment commitment, 50% IDC leverage

Contact and routing

IDC website: https://www.idc.co.za | Ethics Hotline: idc@tip-offs.com | 0800 30 33 36

Additional information

Both direct company applicants and ESCOs are eligible. The energy intervention must be sufficient to keep the company largely operational during rolling blackouts. No retrenchments are permitted for the duration of the facility.

Contact and routing

For enquiries and applications, contact the IDC directly:

Application Considerations:

What You Need to Prepare Before Applying

Most applications are delayed or declined due to incomplete submissions. Preparing the items below upfront will significantly improve your chances.

Core documents (required for almost all funds)

  • Company registration documents
  • Ownership and shareholder information
  • Business plan or project description
  • Recent financial statements or management accounts
  • Project budget and cost breakdown

Project‑specific documents (depending on the fund)

  • Quotes for equipment, infrastructure, or services
  • Feasibility study or technical proposal (where required)
  • Energy solution proposal (for energy‑related funds)
  • Export contracts or buyer information (for export and insurance products)
  • Job creation plan (where applicable)
  • Turnaround or recovery plan (for distress funding)

Additional requirements

  • Proof of sector compliance or permits (where relevant)
  • Evidence of co‑funding or financing approvals (for grants and blended funding)
  • Any templates or declarations specified by the administering agency

What Happens After You Apply

  1. Completeness check – your submission is reviewed to ensure all required documents are included.
  2. Eligibility assessment – the agency confirms that you meet the fund’s basic criteria.
  3. Technical and financial review – your project and financials are evaluated.
  4. Decision and contracting – approved applications proceed to contracting and implementation.

Timelines vary by fund and depend heavily on the quality and completeness of your application.

Important Notes for Applicants

  • Approval is not guaranteed, even if all requirements are met.
  • Funding terms may be subject to final agency approval and conditions.
  • Submitting accurate and complete information is critical.
  • Misrepresentation or incomplete information can result in delays or rejection.

Interested in this fund or have some questions?

Online Enquiry

Direct Enquiry

General Enquiry

Email Address:
siyabongam@idc.co.za

Contact Number:
0860 693 888

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