If common sense governed the affairs of people South Africa would be one of the world’s leading markets for solar thermal technology and there would be a solar system on every roof in that great republic.
In South Africa there is a state monopoly of energy. The energy company, ESKOM, relies on coal to deliver almost all of its energy; coal is burnt to heat water to drive electricity generating turbines. South Africa has good coal reserves but unfortunately there are several problems.
The first is that coal burning is the most environmentally unfriendly and climate change inducing way of energy creation. In South Africa they burn coal to create electricity and the average household uses about 40% of its electricity for water heating. This is hardly efficient, never mind environmentally friendly.
In fact in South Africa most families can cover almost 100% of their water heating needs from solar systems. At Genersys we have designed thermo siphon systems (that it a tank located above the panels, fed by gravity) to be low cost and easy to fit specifically for South African conditions, where there is plentiful sunlight. In South Africa these thermo siphon systems work very well. There is plenty of light and the water inlet temperatures are high.
A year ago ESKOM announced an incentive of up to 5000 rand for installing a solar system. The figures add up very easily. The average system costs around 35,000 rand, which is 30,000 rand after the rebate. The average family pays 18,000 rand a year for electricity of which 7,200 rand can be saved by using a solar geyser, which is what South Africans call solar system.
In anyone’s language this adds up to a no brainer, with a simple “payback” (assuming no change in electricity prices) of less than four years with a solar system that will be guaranteed for up to 20 years.
David Carte, a South African financial journalist has calculated that fitting solar geysers to every one of the six million South African homes would cost only about 15% of the cost of building a new power station. Like most countries, South Africa is facing an increased demand for electrical energy but has failed to build the necessary power stations to keep up with demand, so that South Africans from time to time experience power outages.
So far only 1000 solar systems have been installed in South Africa under the ESKOM project. It is hard to understand two things. The first is why only 1000 systems have been sold under these conditions. The second thing is why the government is not giving solar systems away. It would be a lot cheaper than building new power stations and would really help us in reducing the pace of climate change.
Filed under: Coal, carbon dioxide, climate change, electricity, energy, global warming, solar, solar energy, solar panels | Tagged: average energy costs in south africa, eskom, payback of solar geysers, savings from solar geysers, soalr geysers, South Africa
The SABs that test these “Chinese’ systems need to relook at their procedures.Eskom is trying to launch and market the solar industry that is shooting itself in the foot with their ridiculously high prices.Also South africans need educate themselves regarding solar hot water systems very much like Robert Kyriakides is doing.Look at the facts and numbers ,not the emotive language just to sell aproduct.
Operational costs of a solar geyser are said to be 70% cheaper than an electric geyser. So, Eskom will earn 70% less PER MONTH from the 6 million houses that use electric geysers. That will put them out of business and thus, Eskom must pretend to encourage the use of Solar systems whilst building capacity on the side. Also, they talk about global warming and CO2 emissions. They choose to build renouned CO2 emitters in Medupi & Kusile and expect you to pursue environmentally friendly technologies at your valued 30,000 rands. They know you will not do that because it does not make economic sense to you in exactly the same way that it does not make economic sense to them to go nuclear which is environmentally friendly. When its time to load shed, you will be blamed and not them. In 3-4 years time, you are still there with your geyser and Eskom will be repaying the money they borrowed to build these environmental monsters. They encourage you to use energy guzzlers so that they can afford the repayment. If you don’t, they keep increasing your tariff. Solar geysers will never take off for as long as they cost 3-4 times the price of a geyser. There are more than 1000 government ministers, MEC’s, DG’s, DDG’s CEO’s,COO’s,MP’s,politicians,etc. If only 1000 solars have been sold, why are these policy makers not buying solar ?
Hello,
I agree that solar is a no-brainer in SA. However, I recently did the math and had 2 offers presented. I was not satisfied. You sed:
“The first is why only 1000 systems have been sold under these conditions.”
Well, the solar guys have adjusted their prices so that they just cash in that money. I went through a quote and it was clear. Basically the government is indirectly subsidizing the solar industry.
Secondly: Most of the equipment comes out of China, probably from just 2 or 3 factories. The quality of Chinese products in SA generally sucks.
So the reason why most people are not biting is because the math tells them to leave it. And because the quality sucks. Actually that means South Africans are smarter than you suggest.
Well said! The solar systems are not an eye sore either!
Thanks; I think that it is a mistake but one that Governments all over the world are making; they are putting the fossil fuel energy companies in charge of renewables and I could not think of a greater conflict of interest. It is probably the largest single reason why take up of renewables has not been greater in many places.
Robert