In an effort to combat rising energy costs and the challenges of household water damage, Nedbank said its Senseable Geyser programme saved clients over R50 million in energy expenses over the past 18 months.
South African households are feeling the strain of rising electricity costs, with everyday appliances placing increasing pressure on already stretched monthly budgets.
According to recent household energy-use insights, the average home can spend approximately R3,794 per month on electricity, driven largely by a handful of high-consumption appliances.
At the top of the list is the geyser, which alone accounts for around 240 kWh per month - roughly R840, making it the single biggest electricity expense in most homes. This is followed by heaters (R630/month) and stoves or ovens (R472/month), all of which see increased usage during colder months.
Launched in 2021, the initiative utilises technology to monitor nearly 10,000 geysers across South Africa, that is changing the landscape of home insurance.
Working in conjunction with Sensor Networks, a locally-based company specialising in Internet of Things (IoT) solutions, the Senseable Geyser programme emerged as one of the largest deployments of embedded smart home technology within the South African insurance sector, Nedbank said.
The programme is based of Sensor Networks smart controller, a retrofittable device that integrates with existing geysers.
Clients are able to access this technology for a monthly fee. The smart controller continuously monitors for leaks arising from various failures, including burst geysers and element malfunctions.
Upon detecting a leak, the system promptly shuts off the water supply, preventing extensive damage and averting costly claims.
“The innovative technology has not only led to significant savings for clients but has also reduced the incidence of stressful household water emergencies,” said Loreal Raath, Support Services Manager at Nedbank Insurance.
An automated alert system communicates the issue to a dedicated incident management platform, which dispatches an equipped plumber to manage the problem efficiently, thus sparing clients from the hassle of sourcing contractors and diagnosing issues.
For clients, the benefits extend well beyond the immediate protection from leaks.
The Sense Connect app, pivotal to the programme, empowers users to monitor their geysers in real time, adjust temperatures, set usage schedules, and even switch off units remotely.
This provides valuable in South Africa, where geysers contribute to as much as 40% of household electricity consumption.
"As a result, clients are enjoying average savings of R402 per month on their energy bills, with some energy-efficient households saving upwards of R600 monthly," the bank added.
Reflecting on the journey from pilot to full-scale programme, Raath said, “Nedbank continues to expand the programme across its home insurance client base, applying five years of operational learning to a broader population of policyholders.”
The success of this initiative underscored the importance of smart technology in modern home management.
The Senseable Geyser programme further contributes to the local economy by training over 400 plumbers nationwide in the installation and management of smart geyser technology.
"This workforce development initiative not only elevates industry standards but also ensures that the growing number of connected devices is serviced by qualified professionals," Nedbank said.
Mark Allewell, CEO of Sensor Networks, emphasised the significance of this partnership.
Allewell said, “We asked Nedbank to back a technology that had never been proven at scale in South African insurance five years ago. They did. The R50 million in energy savings delivered is a testament to its worth.”
As the Senseable Geyser programme continues to evolve, its impact promises not only to innovate home management practices but also to save clients both money and stress, all while protecting their homes from the perils of water damage.
ashley.lechman@nationalmg.co.za