Affordability is barrier to accessing renewable energy solutions – Competition Commission
South African families and businesses are increasingly seeking renewable energy products, necessitating legislative measures to fulfil their energy access needs, according to the Competition Commission.?
In November 2023, the Competition Commission performed a survey on the state of competition and the adoption of solar PV panels, inverters, and storage batteries by households and businesses in three South African metropolitan areas: Johannesburg, Durban, and Cape Town.?
According to the survey, the procurement of renewable energy products increased over the years 2021 to 2023, with inverters and storage batteries being the most sought-after products.?
The Commission states that most consumers purchased renewable energy products after 2021, which can be attributed to the intensity of loadshedding and the potential ease of sourcing the products.?
Have you read? Assessing the energy sources of households in Nigeria
“72% of consumers surveyed purchased inverters between 2022 and 2023, while 64% of consumers surveyed purchased solar PV panels in 2022 and 2023, with 64% purchasing storage batteries,” the survey stated.?
Competition Commission highlights need to promote investment in South Africa’s manufacturing capacity?
Residential households reported that they are buying the products from local manufacturers, whereas businesses indicated that they buy from local distributors who import the products.
“The disparity in the results from households and businesses reveals a need to promote identification methods for local content and an understanding of its contribution to community economies. Consumers should ask questions when making purchasing decisions and be encouraged to buy local.
“Furthermore, the Commission’s research reveals that currently only one South African firm is in the Top 10 of leading manufacturers of solar PV panels. There is a need to promote investment in South Africa’s manufacturing capacity and facilitate participation by diverse investors, including by consumers.”
The Commission states that 90% of households and 92% of businesses are aware of the cost component of each renewable energy product.?
The report showed that solar PV panels are the least accessible renewable energy product, with households indicating that solar PV panels cost less than R20,000 on average and businesses indicating that solar PV panels that they use cost less than R500,000.?
“The same view is also noted with respect to the cost of inverters and storage batteries. This indicates that affordability may be a potential barrier to accessing renewable energy solutions and that this may inhibit the widespread adoption of the products,” the report stated.
James Frank, Country Manager at Solis Inverters, talks about the smart features and functionality of their inverters to overcome the challenges of loadshedding
领英推荐
Suggested policy development
The Commission identified potential policy changes that will improve energy access and participation in the renewable energy sector.
FAQs about solar PV panels and inverters
What is the relationship between inverter and solar panels?
The US Department of Energy states that an inverter is one of the most important pieces of equipment in a solar energy system.?It’s a device that converts direct current (DC) electricity, which is what a solar panel generates, to alternating current (AC) electricity, which the electrical grid uses.
What are the different types of solar inverters in South Africa?
Grid tied inverter, Hybrid inverter and Off grid inverter, according to Solar Inverters.
Which type of inverter is best for solar panels?
Paradise Energy Solutions says string inverters, also referred to as centralised inverters, are the most common, and often the most cost-effective, type of inverter. String inverters convert the DC energy produced by each string of solar panels into AC power.
How many solar panels can an inverter handle?
Aurora Solar says the number of solar panels you can connect to your inverter is identified by its wattage rating. For example, if you have a 5,000W inverter, you can connect approximately 5,000 watts (or 5kW) of solar panels.