Fund Name

Energy Resilience Transition Fund: Infrastructure Programme (ERTF-IP)

Agency

IDC

Type

Loans & Equity

Sector

Renewable Energy

Summary

The MCEP Energy Resilience Transition Fund: Infrastructure Programme (ERTF-IP) is a sub-programme of the IDC’s Manufacturing Competitiveness Enhancement Programme (MCEP). Its core objective is to incentivise companies that adopt alternative energy solutions to source solar panels, inverters, and batteries from local South African manufacturers or assemblers.

The facility provides an interest-free (0%) loan equal to 15% of the procurement cost of locally manufactured or assembled photovoltaic (PV) panels, inverters, and batteries. The loan is capped at R10 million per applicant and is disbursed directly to the component suppliers — not to the applicant — upon submission of invoices.

Eligible applicants include SMEs and Energy Service Companies (ESCOs) that already qualify for IDC Energy Resilience funding. The programme is structured to promote local industrial manufacturing of green energy components while helping businesses transition to cleaner, more resilient energy infrastructure.

To qualify, applicants must be at least B-BBEE Level 4 at the time of application, or demonstrate a credible plan to achieve Level 4 status within 24 months of approval. Additionally, no retrenchments are permitted for the duration of the loan facility.

The ERTF-IP sits within the MCEP suite, which broadly supports South African manufacturing competitiveness. Applicants are encouraged to apply through the IDC’s standard funding application process and can contact the IDC directly for guidance.

Who this is for?

  • Small and Medium Enterprises (SMEs) procuring locally manufactured or assembled solar PV panels, inverters, and batteries
  • Energy Service Companies (ESCOs) that qualify for IDC Energy Resilience funding
  • Businesses at B-BBEE Level 4 or committed to achieving Level 4 within 24 months of approval
  • Companies based in South Africa that are adopting alternative energy solutions

What support/funding you can get

  • Instrument: Loan
  • Pricing: Fixed rate of 0% (interest free)
  • Loan amount: 15% of the cost of locally manufactured or assembled PV panels, inverters, and batteries
  • Maximum loan: R10 million per applicant
  • Disbursement: Paid directly to component suppliers upon presentation of invoices

What you can use it for?

The loan may be used exclusively to fund the procurement cost of locally manufactured or assembled solar photovoltaic (PV) panels, inverters, and batteries. The programme covers 15% of the invoice value for these qualifying components, with funds disbursed directly to the component supplier. It does not cover installation costs, imported components, or other energy infrastructure costs outside the defined PV component scope.

Key requirements and conditions

  • Projects must procure locally manufactured or assembled solar panels, inverters, and batteries
  • Projects must independently qualify for IDC Energy Resilience funding
  • Applicants must be at least B-BBEE Level 4 at approval, or achieve Level 4 within 24 months of approval
  • No retrenchments are permitted for the full duration of the loan facility
  • SMEs and ESCOs must present invoices from component suppliers to trigger disbursement
  • Loan is disbursed directly to the component supplier, not to the applicant

How the application works

Applications are processed through the IDC’s standard funding application process under the MCEP umbrella. Prospective applicants should first confirm that their project qualifies for IDC Energy Resilience funding, as this is a prerequisite for the ERTF-IP. Upon approval, the applicant presents invoices from locally approved component suppliers, and the IDC disburses the loan funds directly to those suppliers. Applicants are encouraged to contact the IDC via the Contact Us page or through the MCEP programme team for guidance on the application process and documentation requirements.

What to prepare before you start

  • Evidence that the project qualifies for IDC Energy Resilience funding
  • Proof of B-BBEE Level 4 status (or a plan to achieve it within 24 months)
  • Invoices or quotes from locally manufacturing or assembling suppliers of solar PV panels, inverters, and batteries
  • Company registration documents and financial statements
  • Business plan or project motivation
  • Confirmation of no planned retrenchments during the loan period

Am I a fit for this particular fund?

You likely qualify if:

  • Your business is an SME or ESCO based in South Africa
  • Your project already qualifies for IDC Energy Resilience funding
  • You are procuring locally manufactured or assembled solar panels, inverters, and/or batteries
  • Your business is at B-BBEE Level 4 or can credibly achieve it within 24 months
  • You do not intend to retrench staff during the loan period
  • You need up to R10 million in interest-free funding to cover 15% of your component costs

You likely do not qualify if:

  • You are importing rather than locally sourcing PV components
  • Your project does not qualify for IDC Energy Resilience funding
  • Your B-BBEE level is below Level 4 and you have no plan to improve it within 24 months
  • You are planning retrenchments during the loan period
  • Your component procurement cost exceeds R10 million and you need more than the 15% loan cap

Quick facts

Overview

Who this is for

Type of support

Funding parameters

What the support can be used for

Funding structure

Must independently qualify for IDC Energy Resilience funding

Business support

Information you will need to provide

Evidence of Energy Resilience funding eligibility; B-BBEE status documentation or improvement plan; invoices from local component suppliers; company registration and financial documents; business plan

Key requirements and conditions

Not applicable

How it works

Contact and routing

Additional information

Loan is disbursed directly to component suppliers, not to the applicant. No retrenchments permitted for the duration of the facility.

Contact and routing

Contact the IDC through the following channels:

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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Templates & Downloads

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