Ed’s note: Consider this before you think of going solar
While the internet may suggest that everyone in South Africa is ‘going solar,’ the reality is somewhat different.??
In November 2023, only 4% of South African homes had rooftop solar panels installed. This low percentage was reached during the height of loadshedding, with the country experiencing 6,947 hours of crippling power cuts.?
These planned power outages fueled a staggering 184% increase in renewable energy equipment imports in the second quarter of 2023. However, this did not translate to individuals scrambling to harness the power of the sun.??
The low uptake is due to ‘going solar’ being an expensive endeavour for the average wage earner and a costly outlay for a business of any size. The greater the demand for power, the larger the installation will be and, of course, the greater the cost of the system to the company’s capex. ???
Even so, solar installations are seeing an increase as households and businesses adopt alternative sources of energy to battle against rising electricity tariffs and the threat of loadshedding returning—we are now at day 175 of loadshedding-freedom.??
Also, according to the Competition Commission, households prefer to buy products from local manufacturers, whereas businesses buy from local distributors who import the products.??
This disparity reveals a need to promote identification methods for local content and an understanding of its contribution to the economy. Furthermore, the Commission’s research shows that only one South African firm is currently in the Top 10 leading manufacturers of solar PV panels.??
This lacklustre market revelation should prompt immediate policy push and investment in South Africa’s manufacturing capacity.?
Municipalities going solar driven by policy?
Municipalities, which entered the game by providing off-grid energy sources to the poorest households through a policy directive, are adding to the growth of going solar.??
The Free Basic Alternative Energy (FBAE) policy of 2007?instructs municipalities to supply alternative energy sources specifically to poor households and those without grid connection—and there are many such households in the country.
The policy aims to aid predominantly rural municipalities that struggle to provide Free Basic Electricity (FBE) to a relatively high number of impoverished households in un-electrified areas.??
Oddly, the FBAE policy lists several alternatives, including ones that are neither clean nor safe, such as coal, paraffin, and candles. This policy also lists liquefied petroleum gas and bio-ethanol gel, and although not specifically listed, municipalities also provide solar home systems.?
However, after almost two decades of the FBAE policy publication, municipalities still need to prioritise safe, clean and sustainable alternative energy services to indigent households.?
According to StatsSA, the 2022 figures show that of the country’s 257 municipalities, only 21 supplied solar home systems to 149,919 households. It’s a drop in the ocean but still up from the 113,197 recorded in 2017. ??
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Game-changer for South Africa’s poor?
Providing the nation’s poorest access to clean and modern energy services enhances the quality of life and livelihoods. This is for the daily essentials of cooking, lighting, heating, and communication (mobile phones, TVs and non-battery-powered radios).??
Why not battery-powered radios? Batteries are pricey and unaffordable for people experiencing poverty, and the sustainable disposal of used batteries is problematic in itself.??
Improving alternative energy access has many positive outcomes, like boosting incomes, empowering women, enhancing education, and increasing household satisfaction with electricity use and ownership of basic appliances.??
Additionally, household air pollution from cooking with solid fuels is a significant issue. This health risk is especially prominent in low- and middle-income countries like South Africa, where the high rates of tuberculosis (TB) pose a severe public health challenge.??
Biomass smoke has been identified as a significant risk factor for TB, making energy poverty a major obstacle to better living conditions.??
Recognising these issues, the government has been actively working to address energy poverty. Recent policies include the Integrated National Electrification Plan (INEP), the FBE and FBAE, and Inclining Block Tariff (IBT) programmes, explicitly addressing improving access to and use of electricity.?
The cost of installing solar?
The cost of a solar system comprises the solar panels, inverters, mounting (or racking) equipment, cabling and electrical components (rewiring the premises might also be needed), battery storage (this is optional), labour, consultation and design, permits, and inspections.??
With all these elements and varying types and sizes of systems, there is no solid answer to the cost. For example, an installation for a three-bedroom house could cost between R60,000 and R200,000.??
The average repair costs can also vary widely based on the type and scale of the system and the specific components that need repair or replacement. Generally, the maintenance of a residential system can cost between R1,000 and R6,000 annually.??
Inverter repairs or replacements – among the most common issues – can range from R8,000 to R30,000, depending on the make and capacity. Solar panel repairs are infrequent, but when required, costs may start from R500 per panel for minor issues.
Stay tuned for my next article, which will examine what individuals must consider before investing in solar. While you’re here, please take a moment to complete our eight-question survey on solar power for a chance to win an online shopping voucher.
Until next week,