Should you go solar?

Installers from California Green Design install solar electrical panels on the roof of a home in Glendale, California. (AP Photo/Reed Saxon, File)

Installers from California Green Design install solar electrical panels on the roof of a home in Glendale, California. (AP Photo/Reed Saxon, File)

Published Mar 26, 2023

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By Dominic Preuss

With load shedding most likely to continue for the rest of the year, as stated by Eskom, many households are looking for ways to relieve the burden. The basic option is a battery system, diesel generator or solar system.

While a generator might cost the same or less than an inverter battery system of similar rating, other factors should be conceded, fuel price and availability, noise and emissions, maintenance and environmental impact.

So, should you go solar?

While a full solar system might seem like the perfect solution, they are relatively expensive to invest in upfront.

However, the tax break announced by President Cyril Ramaphosa during the State of the Nation Address has been published by the National Treasury.

The tax break consists of a rebate for individuals who install solar photovoltaic (PV) panels. Individuals will be able to claim a rebate to the value of 25% of the cost of new and unused solar PV panels, capped at R15 000 per individual. This will be available for only one year, from 1 March 2023 to 29 February 2024.

Note that the rebate applies only to the PV panels themselves, not to inverters or batteries. It also does not apply to the installation costs.

“The focus on solar PV panels is to maximise the use of limited government funds to get as much additional generation capacity as possible – and recognises that the government will have to focus on a partial rebate of the components that are most directly linked to generation. This is why installation costs are not included either,” Treasury said.

With the launch of a tax break geared towards encouraging investments into rooftop solar, dubbed as Small Scale Embedded Generation (SSEG), the City of Cape Town has recently announced their SSEG programme.

“Cape Town will be the first city in the country to offer households and businesses cash for their excess rooftop solar power. The City is set to start paying businesses cash for power before June 2023, and residents will be able to start selling power for cash later in the year,” said Cape Town Mayor Geordin Hill-Lewis.

The National Energy Regulator of South Africa (Nersa) has approved a rate of 78.98c/kWh for the financial year 2023 for the city to pay power sellers. The City also added a 25c/kWh incentive tariff over and above the Nersa-approved tariff to encourage investment.

However, residential customers are authorised as customers and need to install an Advance Metering Infrastructure (AMI) or AMI meter. AMI meter costs approximately R12 850, as well as a monthly AMI administration fee will be applicable.

The purchase of solar panels and installation as the grid-tied feed-in configuration does not prevent load shedding either. As this type of system does not have a battery backup, it cannot provide power during a power outage. The advantage of this system is that it can reduce or eliminate your electricity bill, depending on the amount of power generated.

Many people choose to install a hybrid inverter with solar panels, in anticipation of adding batteries later to their system, however, most hybrid inverters need at least a small battery to function properly.

When it comes to inverter sizing, installers will take two primary factors into account: the size of your solar panel system and your electricity usage.

One of the most popular backup solutions for load shedding is an inverter battery system. An inverter battery system is a cost-effective option as compared to a generator of a similar rating.

The battery system not only offers a reliable power backup but also has low maintenance and environmental impact. Additionally, battery systems are quiet and do not produce any emissions. However, the initial investment in a battery system may be high. The cost of batteries and inverters can add up quickly and may not be feasible for everyone.

If all that is needed is a wi-fi connection for communication and entertainment, then a small DC-DC battery pack can be connected to the wi-fi router, preventing downtime during load shedding.

Remote working from home might be more demanding on power needs, requiring a bigger battery and inverter system which increases in expense the more you want to connect to the inverter, or the higher the stage of load shedding that you want to last through, the bigger the system needed.

There are also lots of different types of batteries and solar panels. Solar panels are not universal and will need specific hardware for each different type. If a panel is stolen or broken it must be replaced by the same of a very similar panel, or else it will not be compatible with your current system.

This problem is compounded by solar panel producers releasing new models every few months. If the solar panels become obsolete a few years down the line, you might have to replace the whole system.

It is important to consider your options; power requirements, lifespan, stage of load shedding you want to outlast and amount you want to invest.

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Preuss is an engineering technologist at Amore Hydro.

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