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South African Photovoltaic Industry Association

ANNUAL REPORT 2017 / 2018

APRIL 25

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“A SAPVIA initiative promoting safe and quality Solar PV installations, training, skills development and enterprise development.”

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Chairperson’s Report Dear SAPVIA members and colleagues As I sit here at the Berlin Energy Transition Dialogue and listen to the immense forward strides in renewable energy uptake the world over I am astounded at the bold strategies and programmes being undertaken. From Uganda, Ghana, Mali, Colombia, Equador, Chile to South Korea, UAE and China to name but a few. The Energy Transition is well underway worldwide.

Since my last report much has happened in South Africa. We have a new political leadership with a new vision, a different approach to reviving South Africa’s economy, a looming economic growth conference and presidentially appointed Economic Envoys. A signed Round 3.5 and 4 in the RE IPPPP, which has helped to stem the slowdown in the renewables sector, has come none too soon despite the negative impact on the industry and the country as a whole. To reiterate: our mission is to develop, build and grow markets for our members’ goods and services and to ensure we are seen as a trusted partner to Government and our stakeholders. While it has been a tough year we have made solid strides in achieving this, much more needs to be done. Ensuring we make the sector an inclusive one is crucial. In fact, it’s a non-negotiable. We have built a solid platform with a well-functioning secretariat. We need to do more if we are to champion the energy transition in South Africa. Our work with the IPP Office and the Energy Minister will look to shape a RE IPP Programme that helps to build a programme that is aligned with a range of evolving Government priorities. Our diversity of membership is a strength that has enabled us to weather the storm and build resilience. The fact that we have a growing membership base is testimony to the work of all our teams involved – the Secretariat, the focus groups, the various sub-committees and their members, the Manco and above all the members who have helped shaped the market in whatever way they can. Our increased level of engagement with Government at all levels, particularly the Ministry of Energy and the Department, as well as Department of Environmental Affairs and The dti, amongst others, shows that our capability and expertise is of great value. All the work we are doing on the PV GreenCard with SA Local Government Association, NERSA, BSW, GIZ, GreenCape, SANS and SARETEC is paying off though we are not out of the woods yet.

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Our thanks go to Mike Levington and the Green Economy team working with the CSIR on the Solar Industry Development Plan. This is critical work to help guide us in the whole transformation dialogue we need to engage in. With the promulgation of the RE Development Zones, another piece of critical work has come to fruition. A new set of zones are being planned and we continue with that. So too, in the area of work on the BRICS Green Economy, where Mike and I serve. All good work being done to help us shape the regional and local market Over the next year we will further strengthen the work in the GreenCard roll-out and adoption. We will build of the excellent progress made by Nivesh, Kim, DeVilliers and team. Our work on the SSEG rules and unblocking those obstacles to large scale adoption continues and we have made very good progress in the engagements with NERSA, SALGA and Eskom. Thanks to Jo Dean, Daniel Goldstuck and the whole team. There is a way to go, but we have the best minds engaged in this and persistence that will pay off. Local and Provincial Governments are showing increased willingness to embrace decentralised energy solutions. The work we have assisted SALGA in doing, resulting in the Energy Summit and after that the clear resolutions aimed at moving toward local government procurement of RE is a milestone well achieved. Our contribution has helped shaped critical thinking in SALGA and we look forward to the growing partnership with them as this is another key market space for our members. The work we have done with BSW Solar (the German Solar Association), GreenCape, South African Renewable Energy Technology Center (SARETEC), DGS Berlin and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) will be built on further. These partnerships helped us deliver on tangible programmes and benefits for our members. It has strengthened Government’s view on PV – we are seen as a preferable option in meeting the climate change, energy access and economic development objectives at local level. This is reflected in the desire of many Municipalities to adopt the GreenCard in their procurement programmes. Our ongoing work programmes driven by the Secretariat and the subcommittees are elaborated on in detail in the Annual Report. Our challenge is to strengthen a reformed regulatory environment within which to operate and within which renewables can be more easily rolled out. A major for the next year will also be to implement the outcomes deliberated on in our strategy session in November last year, in particular improved PR, communication and engagement with Government and the ‘doubting Thomases in our country. Only through a strong SAPVIA that has access to key decision-makers and constituents who shape our markets and our future, can we achieve what we need to and I would hope that an incoming new Manco team will strengthen the work of the organisation in building a sector that achieves the potential we are capable of.

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We are ever grateful, as we have said before, for all the volunteer time and the expertise that you, our members, bring in to SAPVIA for the benefit of the whole industry. Ensuring we are well informed is crucial in assisting us to make headway in opening up this market and continually demonstrating the true value of solar PV to South Africa and its people. Thanks to our MANCO members who have consistently given up significant time and expertise in serving SAPVIA. Their expertise helps us move forward. As we move forward we need to show leadership in the transformation of our sector. Talking about it is one step, but shaping SAPVIA in a manner that allows us to better understand these dynamics, challenges and needs is absolutely critical. We need to reflect this transformation in our structures and activities and this is one of our key challenges as we elect new representatives at this forthcoming AGM. The new momentum in the REIPPPP and SSEG markets need to be maintained and SAPVIA will continue to engage with Government over the next 18 months to shape a market place that grows significantly, is more inclusive and that demonstrates that PV can indeed lead the way in a broader more people-centric transformation of the economy. I look forward to a year of forward movement which can be achieved through our collective determination and shared expertise. __________________________________ Davin Chown Chairperson 25 April 2018

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Table of Contents SAPVIA Overview .................................................................................................... 9

Vision, Mission and Organisation Values ............................................................ 10

SAPVIA Membership .......................................................................................... 11

A full list of members ......................................................................................... 12

Organisational Structure .................................................................................... 14

Solar PV Stats to date ............................................................................................ 15

Strategic Objectives (2018 – 2019) ......................................................................... 16

SAPVIA Subcommittees ......................................................................................... 18

Membership, Partners and Affiliations ................................................................... 21

2016 – 2017 Financial Statements .......................................................................... 22

Statement of Financial Position .......................................................................... 22

Statement of Comprehensive Income (Income Statement) .................................. 22

Unaudited Financial Statements: 31 March 2018 ................................................ 23

2017 - 2018 Operational Highlights ........................................................................ 24

PV GreenCard Launch ........................................................................................ 24

SAPVIA Networking Events ................................................................................ 25

Strategy Planning Session .................................................................................. 26

Member Engagement Forums ............................................................................ 26

Stakeholder Engagement Forums ....................................................................... 27

Marketing and Communication .......................................................................... 28

2018 - 2019 Key Performance Areas ....................................................................... 30

Company Information ........................................................................................... 32

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SAPVIA Overview The South African Photovoltaic Industry Association (“SAPVIA” or “the Association”) is a non-profit, voluntary body that aims to promote, develop and grow the photovoltaic (“PV”) sector as part of the wider renewable energy industry in South Africa. The association serves the collective interests of its members with regards to, among others, developmental, regulatory and socio-economic matters. The association, which had eight members at its inception, was officially launched in 2011. As at 31 March 2018, SAPVIA boasts 189 members.

SAPVIA’s members are active in various parts of the PV value chain, including;

• Project development • PV project ownership (as independent power producers) • Engineering-procurement-construction (EPC) • Operations and maintenance (O&M) • Manufacturing • Embedded (roof-top) PV installation • Training • Consulting and Research • Finance

Taking into account that a number of SAPVIA’s members have progressed to the commercial operations phase as independent power producers (IPPs) and embedded PV project developers, a process is underway to refine the membership benefits in such a way as to ensure the association maintains its relevance to the broad membership base.

“SAPVIA now boasts 189 members, making it the largest

renewable energy association.”

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Vision, Mission and Organisation Values

As a way of creating a rallying point for SAPVIA’s activities, it is crucial for members to develop a shared view of the future, appreciate the reason for the association’s existence and the over-arching values that underpin internal interactions and engagements with stakeholders.

The values derive their importance from SAPVIA’s place in the evolution of South Africa’s energy landscape, as well as recognition of the requirement to serve the interests of its various members and stakeholders in as balanced a manner as practically possible.

“The aim is to facilitate a viable Solar PV Market, by becoming the trusted partner to Government and promoting member products and services”

Values We embrace diversity, our strength.

We say what we mean, do what we say. Always.

Instead of walking fast on our own, we walk together with our stakeholders, so we can walk far

Vision Solar PV is the electricity generation technology of choice in South Africa and the rest of Sub-Saharan Africa, in support of socio-economic development

Mission To vigorously mobilise support for the sustainable growth of solar PV in South Africa and the rest of Sub-Saharan Africa

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SAPVIA Membership The Association has the following Members Categories:

Full members: are companies who are established and active in the Solar PV space. They are entitled to; 3 votes per decision, the ability to nominate a SAPVIA board member, display the company logo with link to company website on the SAPVIA website, display the SAPVIA logo on their own company website, advertise products and services on SAPVIA online business directory, publish company press releases on the SAPVIA website, and make use of the ‘Business Opportunities’ area. Associate members: are companies who are entering or starting in the Solar PV space and organisations who share the common vision to promote Solar PV. They are entitled to; 1 vote per decision, display company/organisation logo with link to company/organisation website on the SAPVIA website, display the SAPVIA logo on their own company website, and advertise products and services on the SAPVIA online business directory. Individual members: are students, researchers, academics or any other natural person who is interested in keeping abreast of developments in the PV industry and do not have any active commercial interests in the sector. Individual Members will receive only generally available information and are encouraged to participate in networking opportunities and platforms to gain further insight into the Solar PV industry. PV GreenCard members: are embedded Solar PV installation companies committed to providing customers with a high quality and safe Solar PV Installation. They are entitled to the online PV GreenCard platform, the installer guidelines and checklists, the standardised installation documentation pack as well as the latest in national qualifications, international best practice and appropriate standards.

Full Members Associate Members Individual Members PV GreenCard Members

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A full list of members

ABSA | 3 Energy Renewables | 3E Solar | ABO Wind AG | ACDC Dynamics | ACES Energy (Pty) Ltd | AECOM (Pty) LTD | AFK Renewable Energy | African Infrastructure Investment Managers (AIIM) | African Solar Power | Africoast Energy Pty Ltd | AG Logistics | AGE Technologies | AGE

Technologies (Pty) Ltd | Allbro Group | Allen & Overy LLP | Altgen Recruitment | ArtSolar | Arup Pty

Ltd | Atlantic Renewable Energy Partners | Aurora Power Solutions | Aveng Steel | Baletsatsi

Projects (Pty) Ltd | Barloworld Power | Biotherm | Blue Horizon Energy Consulting Services | Blue Planet

Power | Blue Planet Power | BlueWave Capital | Bright Black Energy | Bright House Solar | BrightHouse

Solar | Broadreach Capital | Canadian Solar Inc | Cape Africa Renewable Energy Services (Pty) Ltd | Cape Solar PV consultants | Caracal Energy | Cennergi Pty Ltd | Centre of Energy Research, NMMU | CitySolar | Consolidated Power Projects | Cool Solar (pvt) ltd | Council for Scientific & Industrial

Research (CSIR) | CreoVision | Cronimet Mining Power Solutions SA (Pty) Ltd | Das Haus Energy Consulting

& Construction Pty | Davitron | DEHN Africa (Pty) Ltd | Deltec Energy Solutions | Det Norske Veritas (Pty)

Ltd | Distributed Power Africa (DPA) | Die Ibo Manufacturing Trust t/a Eco Trades | Distributed Power Africa (Pty) Ltd | EEPro Renewable Energy Projects (Pty) Ltd | Electrogrid | Electronetix | Element

Consulting Engineers | Ellies Electronics (Pty) Ltd | Emergent Energy | Enel Energy South Africa (Pty) Ltd | Enel Green Power RSA (Pty) Ltd | EnergX South Africa | Energy in Motion Technologies

| Energy On | Energyneering CC | Enertis | Enigma Electrical | EP Home Solutions | EP Solar | Eskom Holdings SOC Ltd | Fibon Energy | Firefly Investments | Friem S.p.A | GenEnergy | Genergy

The Alternative Energy Corporation (Pty) Ltd | Genesis Eco_Energy (Pty) Ltd | GeoSun Africa (Pty)

Ltd | Get off Grid | Globeleq South African Management Services (Pty) Ltd | Goodman

Recycling | Go-solar, a subsidiary of B&W Building Services cc | Governance Drive | Gptech/Green Power

Technologies | Graham Benn | Gransolar (Pty) Ltd | Green Protect Africa | Green Share Energy | Greenberg Energy Solutions (Pty) Ltd. | Greenlight Solar | Grey Green Sustainable Energy Engineering | Gritsol (PTY) Ltd | HappySolar | HappySolar | Hawk Solar & Construction (Pty) Ltd | Heini Nel | Hellerman Tyton (Pty) Ltd | HH Roofing (Pty) Ltd | Hinsch Electrical | Holle Linnea Wlokas | HTS

Sustainable | Hulamin Extrusions | I AM Energy | IBC Solar | ILB Helios Southern Africa Pty Ltd | Improcare 105 CC t/a E-Power Technologies | Industrial Development Corporation of South Africa Ltd | Inergy Group - AM Solar | Ingeteam Pty) Ltd | Innowind - EDF Energies Nouvelles | Inspire

South Africa (Pty) Ltd | Into SA | JA Solar South Africa | Jager Technologies (Pty) Ltd | Jabil Inala | JC Solar | JC Solar | JCS Efficient Energy Solutions | JinkoSolar (Pty) Ltd | JM & Sons Solar Solutions

(Pty) Ltd | juwi Renewable Energies | Kabi Solar (Pty) Ltd | Kaco new energy Africa | Kani

Development Solutions | KD Solar | Kgatelopele Private Equity and Venture Capital | Khanyaled | Koukab

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Energy Consultants | KPMG South Africa | Kulani Engineering Consultancy | Kyasol | Lebone Engineering

(Pty) Ltd | Lehadima Energy & Water Ltd | LRG International | M Rother | Mainstream Renewable Power, SA (Pty) Ltd | Markpole Electrical | Matleng Energy Solutions | maxx I solar

energy PTY Ltd. | maxx-solar energy (Pty) Ltd | Microgrid Energy | Microgrid Energy | Milec Solar | Ministry of Solar | MLT Drives(PTY)Ltd | Motla Consulting Engineers | Mulilo Renewable Project

Developments | MVAENERGY PTY LTD | N Cherry Electrical | Nedbank Capital | New Southern Energy

| New Southern Energy | Next Renewable Generation | Nextracker Inc | Northface Solar | NTC Group

(Pty) Ltd | Off Grid Technologies | Olivia Energy Solutions (Pty) Ltd | oneSolar Pty LTD | OnTrack Solar | PC and Q Management Services | PCM Consulting | Phoenix Square PTY (LTD) | PiA Solar SA (Pty) Ltd

| Power Plant Electrical Technologies | Pressure Cleaning Services | Projexconsult and Engineers CC | PWV Electrical | R – Solar | R&R Solar&Electrical Solutions | Rand York Castings | Raydian Power Solutions

| RED Engineering | RED Engineering (Pty) Ltd. | Remote Metering Solutions (Pty) Ltd | Renen

Energy Solutions | Renen Energy Solutions Pty Ltd | RenEnergy | Renewable Africa | Renewable Energy

Investments South Africa(REISA) | Renewable Future (PTY) Ltd | Reseco Energy Solutions | Rhino Energy

Solutions (Pty) Ltd | Rob Short | Romano Group | RTC Control Systems | Rubicon Electrical & Automation

| SARETEC | South African Renewable Energy Technology Centre | Savannah Environmental | Scatec Solar | Schletter South Africa (Pty) LTD | Schneider Electric South Africa | Sectional Title Solutions

(Pty) Ltd | SegenSolar (Pty) Ltd | Shai Photovoltaic Industrial | Shared Energy Management | Sinetech (Pty)

Ltd | Sizwe Africa IT Group | SOLA Future Energy | Solaire Direct (Pty) Ltd | Solar and Power | Solar Capital | Solar Dynamix Pty Ltd | Solar Energy Group (Pty) Ltd | Solar MD | Solar MD PTY LTD | Solar Reserve | SOLAR VISION (PTY) LTD | Solar World Africa | Solar4Africa (Pty) Ltd | Solareff | Solareff (Pty) Ltd | SolarElectric | SOLARpowerPB achievement of renewable energies (Pty)Ltd. | SolarSol | Solek | Solsquare | Southern Cape Solar Solutions | Southern Cross Renewable Energy

Technologies PTY Ltd | Soventix | Soventix SA | Specialized Solar Systems | Standard Bank | Sun Sky

Solar | SUNfarming South Africa Pty Ltd | Sunfarming South Africa Pty. Ltd | Sunpower Corp | SunRanch.Solar | Sunworx | Sustainable Power Solutions | Sustainable Power Solutions SPS | Terra Firma

Solutions | The Greenway Solar | The Green Way Solar | The Mineral Corporation | The Solar Centre | Timac Engineering Projects (Root60four) | Top Quartile Project Services Africa | Treetops Renewable Energy

Systems | Tritec South Africa | TuV Nord Southern Africa (Pty) Ltd | TuV Rheinland Inspection Services

(Pty) Ltd | UL VS South Africa | Unified Power Projects Africa | Unique Air-Conditioning, Fire and mechanical

Engineering Pty Ltd | Valsa Trading | Ventura Engineering Equipment | Veroniva | Victron Energy | Vikram

Solar | Walroflex | WAYNE BUBB ELECTRICAL C.C. | Webber Wentzel | White Oak Consultants (Pty)

LTD | Willis South Africa (Pty) Ltd | Woolworths Holdings | X-Elio | XINGHIZANI (PTY)LTD | X-IT Solar PV

| Yingli Green Energy | Zamori Engineering Services | Zamori Engineering Services

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Organisational Structure

SAPVIA is governed by a board of nine commissioners and a Chairperson elected democratically every two years by its members at the Annual General Meeting. From its rank the management board elects the Vice-Chairperson, Treasurer and Spokesperson.

In order to realise the strategic objectives to which SAPVIA strives, it is crucial that the organisational structure is suitably aligned and resourced. Other elements of the revised organisational structure include independent consultants or service providers that will provide professional advice, as well as manage SAPVIA’s PR processes and conference production activities. SAPVIA’s secretariat comprises of the Administrative Officer and Programme Manager.

Davin ChownChairperson

Wido SchnabeVice-Chairperson

Rainer NowakLegal Rep

Christian CronjeTreasurer

Kinesh ChettySpokesperson

Jo DeanMember

Biotumelo KiepileMember

Frank SpencerMember

Ayanda Nakedi (Late)Member

Kim Thomas Niveshen Govender

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Solar PV Stats to date

Renewable Energy Independent Power Producer Procurement Programme

6225 MW Determined

2292 MW Procured

1325 MW in Operation

Jobs created

91% construction and 9% O&M

7345

42% 11% to community trusts

Equitable Shareholding 70%

In 4years to R0.91/kwh

Cost Reduction

R64.7 Billion

Total Investment

R27 million/MW installed

843 000 average households powered by energy generated by Solar PV

Small Scale Embedded Generation (Best Guess)

~ 280 MW Embedded Solar PV installed

Quality Mechanism

Launched 67 Companies Registered 48 Installers Assessed 30 installers Trained 4 installations Green Carded

~ 60 000 Residential,

Commercial and industrial installations

533170 tons CO2 e/yr Avoided

2730 jobs created

Cost of installation is between

R9 -R13/Wp

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Strategic Objectives (2018 – 2019) The below illustration provides an overview of the strategic objectives agreed at previous AGMs. The key activities included in the table comprise the SAPVIA action plan for the coming year.

Strategic Goals Objectives

Goal 1: Enable key market segments for Solar PV

1.1 Assist the utility scale market segment under the REIPPP programme

1.2 Aid municipalities to meet their energy transition goals

1.3 Support the residential, commercial and industrial market segments

1.4 Promote safe and quality RCI installations through the PV GreenCard Programme

1.5 Facilitate the development of national standards and guidelines

1.6 promote members products and services

Goal 2: Influence legislation through lobbying

2.1 Participate in the development of the Integrated Energy Plan (IEP) and Integrated Resource Plan (IRP)

2.2 Clarify the Electricity Regulation Act and associated implications

2.3 Provide input into key government projects to ensure solar PV’s viability and sustainability

2.4 Mobilise the sector by way of working groups and workshops

2.5 Collaborate with the various national, provincial and local government initiatives

2.6 Identify and commission relevant research studies

Goal 3: Exchange information more effectively

3.1 Communicate better with SAPVIA members 3.2 Create member engagement and networking opportunities 3.3 Endorsement and address selected conferences 3.4 Conceptualize a platform/conference for Solar PV

3.5 Update and implement a public relations (PR) strategy and programme

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Goal 4: Raise funds to execute this strategy

4.1 Maintain members and achieve a positive balance 4.2 Attract new members by creating value added services

4.3 Continuously seek new funding channels (other than membership fees).

4.4 Offer more creative sponsorship opportunities

Goal 5: Create lasting strategic partnerships

5.1 Align with likeminded organisations to achieve specific goals

5.2 Strengthen SAPVIA’s role in South African Renewable Energy Association (SAREC)

5.3 Form strategic partnerships with other relevant RE associations where common issues exist

“A clear simple focused approach to meet member expectations and association goals”

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SAPVIA Subcommittees In order to allow members to participate as much as possible in deliberations related to the PV sector, SAPVIA has established five subcommittees, namely: Manufacturers Subcommittee (MS) Chairperson: Kevin Robinson Vice Chair: Derek Lawrance This group deals with specific issues that relate to the development of local PV manufacturing, and to contribute to a meaningful definition and position of local content as it relates to the REIPPPP and other government-led procurement programmes. The MS has focused its activities on engagements with the DTI, Department of Energy and the IPP Office in order to address the issues of localisation and local content; the status of the IPP program; the designation of various components, mounting structures and solar panels; and the timing associated with future IPP programs. Grid Access Subcommittee (GAS) Chairperson: DeVilliers Botha Vice Chair: Karel Rautenbach The GAS has been established for the purpose of addressing matters related to grid connections. The GAS is tasked to work with government, the National Energy Regulator of South Africa (NERSA), Eskom and local municipalities to promote viable and sustainable grid access for all PV plants. The GAS also addresses grid-related issues that have a negative impact on the solar PV industry growth and advises key decision-makers on the most adequate policies to develop sustainable grid access arrangements. The latter includes considerations related to the ‘self-build’ model, as well as third-party access to transmission and distribution grids (i.e. ‘wheeling’ of energy through a transmission or distribution network, in order to facilitate bilateral transactions between buyers and sellers). The GAS has presented at 3 municipal training sessions, engaged with NERSA, Eskom and Municipalities, are partnering with Eskom GAU to arrange a workshop and assisting municipalities to develop policies to allow grid access. The GAS plans to focus on further and deeper engagement with Eskom and arranging an annual workshop with the Grid Utility to ensure alignment between the grid operator and SAPVIA members,

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Grid Code compliance template that is agreed between all parties, wheeling arrangements and municipal education and assistance. Embedded Generation Subcommittee (EGS) Chairperson: Richard Douglas Vice Chair: Frank Spencer This group remains focused on driving industry quality as well as market access for all stakeholders. In so doing, the EGS is tasked to work with key role players across government platforms to create a viable and sustainable embedded PV market in South Africa. The PV GreenCard has been operationalised and has found its home in the EGS. Focus has been on getting companies registered and installers accredited together with all related aspects. Interest has been high, company registrations have been acceptable, a marketing campaign is needed to market the PV GreenCard to correct target groups to improve the number of PV GreenCarded installations. www.pvgreencard.co.za Hosting a networking event on Finance and Risk gave insight to members on what to expect from the banks and insurers, different avenues for accessing finance and risk products were outlined. Further engagement on this took place through a series of workshops run by SAPVIA – the outcome is industry and the finance houses better understand each other and this is expected to result in product innovations in the market. Policy and lobbying efforts have targeted the Integrated Resource Plan (IRP) and the Electricity Regulations Act (ERA) Schedule 2 Notice. Members have participated on the Grid Code Advisory Committee as well as the Grid Access Unit. Changes in national government, a new energy minister and an overhaul of the ESKOM leadership has meant that some of the lobbying plans were temporarily suspended. Socio-Economic Development – Enterprise Development Subcommittee (SED-ED SC) Chairperson: Jo Dean Vice Chair: Sikhona Lembede The proposed mandate for the Subcommittee was to; create a working stream represented by REIPP’s with linkage to a future Asset Management Subcommittee, create a platform for monitoring and impact assessment for collective statistical reporting and identify a Social Responsibility project and then establish a collaborative funded project between members. REIPPPP & ED objectives of the Subcommittee include; capacity building of community practitioners from a corporate, civil society and government perspective, enhanced understanding about the need for continuous learning and reflection when working with communities, improved networks amongst industry members concerned with the design, implementation and M&E of community development

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and a repository of practice development in the industry, stimulate policy discussions and research interest on topical issues in the industry. The committee has been engaging on formal multi-stakeholder platforms with other social partners, in a bid to define a "Just Energy Transition" to address the concerns of different stakeholders in South Africa. Further consultations with NERSA, DOE and ESKOM had been conducted to mobilise: the rules for SSEG that will now be published in mid-May, the unlocking of Schedule 3 pertaining to the exemption from determination for class 1 to 10 MW- this is getting string attention now and meetings are set to finalise with DOE in May, the third party rules for wheeling and trading, the original rules are being amended and will be presented to NERSA Executive for comment and approval in May and collaborated with the EIUG Climate Change Committee to submit responses on the Carbon Tax and the errors in the current proposed bill – which is ongoing. This Subcommittee plans to focus on: If South Africa commits to an energy transition from predominantly coal-fired power to renewable heavy, how will PV be playing a role that will be more impactful?; What is the definition of a Black Industrialist company?; and What different models of ownership in solar PV should we be pursuing?. We need to define a plan and objectives on how PV can play a transformative role in the ownership space and the different scenarios of ownership. Green Economy Subcommittee (GES) Chairperson: Mike Levington This subcommittee was established in September 2017. The key focus of this subcommittee was to take forward the SIP8 Strategic Environmental Assessment process to establish Renewable Energy Development Zones (REDZs); establish a Solar Industry Development Plan (SIDP) for the industry going forward; promote the rolling out of regulatory certainty around rooftop solar PV; and provide a voice for the solar PV industry in various business fora. The GES has achieved; Amendments to the NEMA regulations gazetted in Q4 2017 and first 8 REDZs gazetted in February 2018, Expert Reference Group for SIP8 was reconvened in Q4 2016 to establish new REDZs in old mining and industrial areas - new study areas released in March 2018, MOA signed with CSIR Energy Centre in Q4 2017 to establish the SIDP. Currently drafting TOR to approach potential funders, and served on BUSA Energy subcommittee, BRICS Energy & Green Economy subcommittee and South African Energy Storage Steering Committee. The GES plans to focus on; the REDZs in old mining areas are gazetted to become green industrialisation nodes for the SIDP and play a role in the Energy Transition in South Africa, Finalize TOR, persuade Dti to champion the SIDP, and source donor funding to complete the plan and continue for greater deployment of solar PV within these fora.

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Membership, Partners and Affiliations

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2016 – 2017 Financial Statements Statement of Financial Position

SAPVIA’s liabilities exceeded its assets by an amount of R 53 887 as at 31 March 2017 (R 47 588 as at 31 March 2016). The biggest liability was member subscriptions received in advance, i.e. subscriptions for the April 2017 - March 2018 membership period, received prior to 31 March 2017. This is shown as ‘deferred income’ in the balance sheet. The remainder of the liabilities comprised mostly VAT, accrued leave pay and trade payables. The biggest asset was cash and cash equivalents of R 664 239 (31 March 2016: R 1 270 965). The cash balance mainly comprised member subscription fees received in advance.

Statement of Comprehensive Income (Income Statement)

SAPVIA continues to be primarily funded through member contributions. Revenue from subscriptions increased by 15.1% from R 1 967 218 in the prior period to R 2 263 668 for the year ending 31 March 2017. Sponsorship income decreased from R347 411 in 2016 to R84 348 in 2017. During the 2016 financial year the association received one-off sponsorships, which were not replicated in 2017. Operating expenses decreased by 6.4% from R 2 563 899 in 2016 to R 2 399 144 for the year ended 31 March 2017. It was important for the association to bring its costs in line with revenues, given the losses realised in both the 2015 (R 313 700 loss) and 2016 (R217 095 loss) financial years. Cost savings were achieved primarily by incurring lower employee costs following the resignation of the previous CEO and decreased rental costs with the move to less expensive premises. SAPVIA realised a loss of R 6 299 for the year ended 31 March 2017 compared to a loss of R 217 095 in the prior year. The audited financial statements for the year ended 31 March 2017 are included as an annex to this report.

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Unaudited Financial Statements: 31 March 2018

Given the timing of this report, and the latest set of audited results available being those for the year ended 31 March 2017, preliminary unaudited financial information is provided for the period ended 31 March 2018.

Summary financial results for the 5-year period from 2014 to 2018

2014 2015 2016 2017 2018 Actual Actual Actual Actual Forecast Audited Audited Audited Audited Unaudited Revenue 1,508,399 1,605,931 1,967,218 2,263,668 2,296,737 Other income 83,182 224,007 347,411 84,348 241,258 1,591,581 1,829,938 2,314,629 2,348,016 2,537,995 Operating expenses (1,500,451) (2,165,888) (2,563,899) (2,399,144) (2,333,861) Operating income/ (loss) 91,130 (335,950) (249,270) (51,128) 204,135 Interest income 28,205 22,250 32,175 44,829 25,800 Profit/ (loss) for the year 119,335 (313,700) (217,095) (6,299) 229,934

In 2018 the association generated a profit for the first time since 2014. Whilst making a profit is not one of the main objectives of SAPVIA, a situation where the association continues to make financial losses is not sustainable in the long term. It was therefore important to return to a position of profitability and the above table reflects the efforts to bring costs in line with revenues. However, it is important to note that the cost reduction measures were done at the expense of funding certain strategic initiatives. It is therefore recommended that the membership subscription model and fee structure be reviewed in the current year, with the aim of ensuring not only the long term financial well-being of the association, but also to ensure that sufficient funds are available for strategic initiatives. As a result of the profits generated in the current year, as at 31 March 2018 the association’s assets exceeded its liabilities for the first time since 2014.

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2017 - 2018 Operational Highlights PV GreenCard Launch

SAPVIA’s PV GreenCard programme was launched on the 26th of May 2017 at the Resolution Circle in Johannesburg with the much appreciated support of our event sponsors: Enel Energy SA; IBC Solar South Africa, Canadian Solar and Jinko Solar SA. The launch event was a great success, welcoming more than 200 attendees.

The speaker line-up included a key-note address by former DoE Director General, Nelisiwe Magubane. Other presenters included BSW’s Jorg Mayer, GreenCape’s Ursula Wellmann, SARETEC’s Sven Pietrangeli, Solareff’s DeVilliers Botha, SAPVIA’s Programme Manager: Niveshen Govender, SAPVIA’s Chairperson: Davin Chown and SAPVIA board representative the Late Ayanda Nakedi.

Thank you to all the companies and installers who have registered and participated in the programme. If you have not yet registered please visit the PV GreenCard website at http://www.pvgreencard.co.za. Take advantage of this internationally renowned Solar PV installation quality mechanism, training and standards.

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SAPVIA Networking Events

Our Networking Events remain popular and continues to provide that valuable platform for SAPVIA members and non-members alike, to network with industry peers and harvest knowledge from the industry experts presenting at these events. For the 2017 calendar period, SAPVIA held four of these events, covering topics around storage use, financing options for Rooftop PV, insurance risks, etc. All presentations are available to download from our website at: http://www.sapvia.co.za/ category/networking-events/ The 2017 events were sponsored by GIZ, IBC Solar, Webber Wentzel, Element Consulting Engineers, AGE Technologies and Canadian Solar, with GIZ being the Main Sponsor for each event. SAPVIA wishes to thank each of the sponsors for their continued support, as without it, these events would not be possible. To sponsor and participate at the next networking event, please contact us on kim@sapvia.co.za for more information.

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Strategy Planning Session

SAPVIA’s Manco, Secretariat and Subcommittee heads, together with key members from BSW and the GIZ held a 2-day strategy planning workshop in December 2017. At this session, the BSW team shared their learnings as an industry body. The GIZ further provided valuable market related insights. It saw two full days of great debate and strategizing which in turn would shape SAPVIA’s work plan for 2018/2019.

Member Engagement Forums

In September 2017, SAPVIA embarked on a series of member engagement meetings. The aim of the engagements was to help SAPVIA better understand its members and the types of issues they might be experiencing within their various market segments, thereby allowing SAPVIA to identify areas in which it may be able to further assist industry. The meetings provided some valuable insight to help craft the strategy for the coming year.

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Stakeholder Engagement Forums

SAPVIA Programme Manager, Niveshen Govender, as well as Manco members have actively promoted both SAPVIA and the PV GreenCard at more than 20 industry conferences, gatherings, events and workshops both nationally and internationally. The team had collectively reached more than 3000 stakeholders in 2017/2018. Given the uncertainty in the industry during this period, the positive representation was both welcomed and accepted by industry across all spectrums. SAPVIA has managed to articulate the benefits of Solar PV and the associated impact potential. In the effort to be a trusted partner to Government, the SAPVIA team had positioned itself well with key role players across all levels of Government, making a positive impact for Solar PV and Renewable energy in general.

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Marketing and Communication

Marketing and communication is a fundamental and complex aspect of our efforts. To this end, SAPVIA launched a re-designed and user-friendly website in 2017 and also enlisted the services of a professional PR consultant. This saw a steady rise in website visitors, averaging at 5,000 unique visitors monthly to the SAPVIA site and around 800 to the PV GreenCard site. The PV GreenCard website went live during its launch month, May 2017. Social media is much more than a trend. It's become an essential part of the fabric of modern society. It's hard to overestimate how much of an impact social media now has on our world. During the 2017 cycle, SAPVIA’s Twitter Daily Impressions averaged at 2,000 per month. Our number of profile visits rose from 261 in Feb 2017 to 2,283 in December 2017. In line with our mandate to maintain positive industry visibility, SAPVIA made the press in no less than 40 articles, both in online and printed publications. We remain committed to continue to take this forward and see SAPVIA break even more barriers in the 2018/2019 cycle.

Solar body urges Energy Minister to provide revised PPA signing

Engineering News, 11 Apr ‘17 date

11TH APRIL 2017 Planning South Africa’s energy future

EE Publishers, 11 May ‘17 date

11TH APRIL 2017 Local solar PV industry looks to self-regulate

Tech Central, 31 May ‘17 date

11TH APRIL 2017 SAPVIA launches ‘bold’ 5-point plan for solar industrialisation Engineering News, 08 Dec ‘17

date 11TH APRIL 2017 SAPVIA member appointed Global

Solar Council Director Engineering News, 29 Sept ‘17

date 11TH APRIL 2017 South Africa Sees No Hurry for New

Coal and Gas Projects Bloomberg, 19 Sept ‘17

date 11TH APRIL 2017 SAPVIA presents strategy to drive

PV industry ESI Africa, 11 Dec ‘17

date 11TH APRIL 2017

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2018 - 2019 Key Performance Areas Based on a review of the strategic objectives and activities that were discussed at the previous AGM, SAPVIA’s strategic positioning has been defined. The format adopted encourages focus on outcomes, as well as provisions to measure progress, in the form of key performance areas, indicators and corresponding targets. For each key performance area (KPA), the targets and outcomes are outlined herein as follows:

• Frequent Reports to MANCO, members and stakeholders

• Generate Income through sponsorship and innovative income generating mechanisms

• Maintain a positive balance by reducing costs and attracting new members

• Achieve a clean financial audit

Financial Management and Reporting

• Recruit new members and Retain current members

• Demonstrate SAPVIA benefits to promote upgrading membership

• Regularly request member feedback, evaluate and customize offerings

• Create Value added Services to promote member products and services

Member Management

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• Become the partner of choice to relevant Government activities

• Represent the Solar PV industry at relevant platforms

• Create a repository of Solar PV statistics and information for packaging and distribution

• Create and sustain sustainable partnerships with organisations with similar mandates

Industry Engagement

• PV GreenCard Programme (quality mechanism, training and skills development)

• Solar Industry Development Plan (solar PV contribution to the just energy transition)

• Industry standards (SANS10142-1-x) and guidelines

• Research Studies as identified

Project Management

• Maintain positive industry visibility and presence on various media platforms

• Update website and enhance features making it user friendly to members

• Increase communication and engagement with members and stakeholder

• Collaborated or endorsing industry events and create a stage/conference for Solar PV

Marketing and Communications

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Company Information

Johannesburg Office

Eastgate Office Park, Block A, South Boulevard Road, Bruma, Johannesburg Tel: +2711 553 7264

Cape Town Office

Westlake Square, Shop A, 1 Westlake Drive, Tokai, Cape Town Tel +2721 200 5856

www.sapvia.co.za

www.pvgreencard.co.za

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