In South Africa, the conversation around energy is intensifying. As we grapple with the impact of load shedding and a strained national grid, there's a growing consensus that we need to expedite our transition to renewable energy, particularly solar.
With most of South Africa receiving about 2 500 hours of sunshine per year, and solar radiation levels between 4.5 and 6.5kWh per m2 daily, the country’s abundant solar resources makes solar one of the cheapest sources of energy currently available to South Africans.
Solar provides a promising solution to the load-shedding crisis, offering both immediate relief and long-term sustainability. Innovative financing models and business strategies, particularly from financial institutions, have made solar energy accessible and feasible not only for households, but also for commercial, industrial and utility scales.
Sapvia is at the forefront of the SA's contentious energy transition. With 13 years under its belt, the formation of the association – a member-led non-profit entity – predates the advent of regular load shedding in the country: a crisis the group are urgently working to address.
Sapvia looks at energy security in the context of SA's industrialisation trajectory, as well as environmental sustainability, and socio-economic imperatives such as employment and equitable energy access.
While we're primarily addressing the energy challenge, we're simultaneously invested in addressing broader socio-economic challenges that the country faces.
Sapvia is an advocate for a Just Energy Transition, and a diversified “energy-agnostic” scenario, thereby acknowledging the continued role of other energy sources and carriers as components of the envisioned energy-mix.
Representing more than 500 members comprising project developers, independent power producers, Original Equipment Manufacturers, Engineering, Procurement and Construction (EPC) companies, banks, telecoms companies, training organisations and more than 380 small, medium and micro-enterprise installer companies, the association has been instrumental stakeholders in discussions around Renewable Independent Power Producer Programme and private power purchase agreements.
The group's activities are also driving employment, especially during the current solar boom. February alone saw 1 073MW of (primarily solar) renewable energy projects registered with National Energy Regulator of South Africa – close to two-thirds the total from 2022, heralding a vibrant 2023, in which many operations are now looking to rapidly scale up and expand.
Sapvia has taken on a proactive role in driving and shaping the energy policy agenda in South Africa. We work closely with Eskom, Independent Power Producer Procurement Programme offices, Department of Mineral Resources and Energy as well as other relevant stakeholders and government departments.
Although current legislation is generally enabling, there are certain key gaps we're working on addressing. These include the disparities within the recently announced financial incentives schemes for solar PV, as well as better clarification of grid connection rules. Upgrades to grid infrastructure will prove the single biggest enabler for widespread uptake of solar energy in South Africa.
PV Green Card system
Central to Sapvia's efforts is the PV Green Card system, a robust quality-assurance mechanism and certification protocol built on four key pillars: skills development, accreditation, documentation and standardisation. Consumers, contractors and industry benefit from the trust gained through the certification protocol
This also ensures widespread access to training, enhancing the proficiency and expertise across the solar industry. PV Green Card-accredited companies in turn issue certificates of compliance and comprehensive as-built reports.
These reports detail the technical specifications and components used in each solar installation, and are officially referred to as PV GreenCard reports, and are distinct from the Green Card system.
Driven by a vision to including our unemployed youth sector into the formal economy, and with a core focus on skills development, Sapvia recently partnered with Gauteng government to roll our 6 000 new skills individuals over the next three years.
In addition, the association is championing the imperatives of localisation and local production. Last year, the group commissioned a research project to evaluate localisation potential in the solar industry across the entire value chain.
Given South Africa's unique energy landscape and demands, the country is actively exploring and implementing innovative renewable energy, and power-storage solutions.
But the innovations we're seeing in this space are not purely technological, and also extend to financing, and regulation, as well as other areas.
All four major SA banks have incorporated digital financing options for Sapvia-endorsed solar energy into their services, including mobile app platforms, thus simplifying the investment process for customers. Moreover, flexible payment options, such as leveraging one's home loan, mean that grid-tied solar back-up systems – often prohibitively expensive when paid upfront – are now accessible to a broader base of users.
Sapvia is also spearheading efforts in data collection and transparency. We're in the process of launching a public solar energy database, accurately detailing installed solar capacities across residential, commercial, industrial, and utility scales in South Africa. The database will also feature regular industry intelligence reports, fostering informed decision-making among all stakeholders in the sector.
The narrative around solar energy in South Africa is evolving. With the PV GreenCard accreditation system rapidly gaining traction and public trust, and a solid commitment to a Just Energy Transition, Sapvia is helping to ensure that solar energy brings a brighter, more sustainable future for all South Africans.
Dr Rethabile Melamu is the CEO of the South African Photovoltaic Industry Association.
BUSINESS REPORT