Go solar, as nature intended
After the announcement last week that Eskom can guarantee only some level of stability in the load-shedding saga by March 2025, depending of course on the outcome of current investigations into the fraud and corruption of high ranking officials and affiliated companies accused of leeching coal supplies and funding. But who can afford to sit around any longer waiting for sanity to be restored to our national energy supply?
There’s only one thing to do and that is to go solar, as nature intended. And collectively, you will be doing South Africa and the world a favour.
But are you ready to move into the future at short notice, with fossil fuel mining being on the UN’s global “to do” list to reduce heavily within seven years, by 2030. And how immediately tangible and economically accessible is the solar option for individual householders.
Government has promised solar panels in all new RDP housing from now on, but don’t hold your breath on that one. Looking back, top-end “green” lifestyle villages and “eco” estates had already incorporated solar panels for empowering various household functions more than three decades ago in South Africa, and half a century ago in some European countries. But where does that leave you and me?
Tax incentives – but are they enough
In an attempt to appease the millions of unhappy and “powerless” South Africans, the National Treasury and revenue service SARS announced two enhanced renewable-energy tax incentives in the 2023 Budget and have now called on the public to comment on the draft legislative amendments before May 15.
The amendments mean that businesses will be able to claim a 125% tax deduction (in the first year) for qualifying capital expenditure in respect of all renewable energy projects, with no threshold on generation capacity. This incentive will be available for a period of two years and apply to investments in renewable-energy projects brought into use for the first time on or after 1 March 2023 and before 1 March 2025.
And that individuals will be able to receive a tax rebate to the value of 25% of the cost of any new and unused solar PV panels, up to a maximum of R15 000, available for a period of one year (1 March 2023 to 1 March 2024).
Homeowners and body corporates have been invited to comment on this second category before the given date, to decide whether the incentives and time periods are enough.
Your opinion is needed immediately
Understandably many people feel government should offer a more balanced solution, with the tax-deduction period extended until Eskom power is restored, and for the rebate to include the inverter and battery required for the panels to function.
So if you are thinking of making a switch to solar your input on the terms of the above incentives could seriously help ring the changes. All you need to do is quickly send an email voicing your opinion of government’s offer before close of business on Monday 15 May to the National Treasury’s tax policy depository at 2022AnnexCProp@treasury.gov.za and SARS at acollins@sars.gov.za
Then, if you’re as fed-up as most of us are with the national energy supplier’s inconsistent supply, and want to take immediate action this year towards installing solar panels, you need to make sure you are reliably informed of all your options before taking that step towards a more supportive household existence and greener, more climate-friendly future.
South Africa on average gets more than 2 500 hours of sunlight a year, which is double the solar radiation of Europe. This, based on the national averages from 209 countries, places it in lead position of solar power potential.
This, added to the fact that this country has one of the most unstable and unreliable power grids in the world, with the constant threat of power outages not only being an inconvenience, but putting our electrical and electronic equipment at the risk of serious damage, makes it hardly surprising that solar panels are fast becoming one of South Africa’s most necessary requirements.
So while some businesses and homeowners have invested in generators to take over during power outages, many others are taking the more permanent step into continuous solar power to generate “current” electricity, to the extent that some suppliers have reported that demand is currently exceeding the supply.
But how much must we expect to pay for going solar? To assess the cost factor of the supply and fitment of these panels a “needs” assessment should be undertaken by an established solar panel specialist with a reliable reputation who will design and implement a solar solution to fit your own home’s needs and pocket. This also beneficial for those working from home.
What to look for
There are three main categories of solar panel energy solutions. These are Grid-tie, Off-grid and Hybrid. The most popular is a hybrid solar power system which works in conjunction with the Eskom grid when the sun is not shining, or with the storage batteries during load shedding.
Installation of the hybrid system is more expensive initially, but is highly recommended as a more economically viable investment in the long-term, saving you up to 80% of your electricity bill so that you can cover your costs within two to three years.
To what extent can solar energy help?
We are told that if you install a 4 000 W (5 kVA) solar hybrid system, you’ll be able to continue running more or less everything in your house when the lights go out. That is apart from the geyser and the stove. But with a 12 000 W (15 kVA) hybrid system, using more panels and storage batteries, you should be able to run everything in the average household, including heavier-draw appliances such as the washing machine, hot-water geyser, heaters, air conditioner, fridge and oven, and your electric kettle which surprisingly uses the exorbitant amount of 200 watts per second.
Cost-wise, a panel can be around R3 000, but between 5 and 10 panels may be needed, depending on the requirements of the household and whether your installation is intended just as a booster, to bridge load shedding, or for broad usage. And then there’s the cost of the inverter and the batteries. But this is where your conversation with a reliable solar panel supplier begins. Solar panels need a battery to store the sun’s energy for when it’s cloudy and an inverter to convert the battery’s direct current (DC) into an alternating current (AC).
For solar panels to work at their optimum efficacy, they must also be kept clean and free of debris such as leaves, dirt and grime.
Investing in a solar power system is a big decision perhaps, but right now it sounds a lot more appealing than remaining a defenceless victim of Eskom’s shenanigans.