While investing in solar power may be a no-brainer for many, some South Africans continue to put off investing in alternative power sources in the hopes that loadshedding will be resolved in the coming years.
However, while Dominique dHotman, Head of ooba Solar, acknowledges that our ability to remain optimistic in the face of extreme adversity is one of the things that makes South Africans extraordinary, it is time to be pragmatic. “There’s no denying that the solar power comes at a hefty price tag, but this investment provides immediate lifestyle return and financial peace-of-mind in the long run,” comments dHotman. “It’s been 16 years since the energy crisis first began, so it’s crucial that South Africans take power into their own hands by investing in alternative energy sources.”
A short history of loadshedding
Eskom first began implementing ongoing power cuts, locally known as ‘loadshedding’ in November 2007. The country experienced a six-year reprieve before loadshedding made its dreaded return in 2014, with sporadic blackouts until March 2021 when it started again in earnest.
The root cause of the energy crisis lies in ageing infrastructure, mismanaged funds intended for upkeep and a failure to add additional generating capacity to power plants in the early 2000s under President Mbeki’s regime, despite dire warnings from Eskom management.
“Using figures from EskomSePush and the Council for Scientific and Industrial Research's (CSIR) Energy Centre, we have experienced an estimated 7,777 hours of loadshedding from 2021 to May 2023,” shares dHotman. “Every one of those hours translates to the inability to cook a hot meal, lost productivity, and in the worst cases – threatens the physical health and safety of the most vulnerable groups in our country – the sick and the elderly”.
“As a nation, we are incredibly resourceful and the majority of South Africans have simply adapted their lives around the loadshedding schedule: cooking at different times, charging devices during electricity windows, buying candles, and investing in devices that keep certain appliances on without power. But the fact remains that these hours without power are hours we can never get back and that we have no real guarantee of when loadshedding will end - if it ever will,” he adds.
What will it take to fix Eskom?
“When it comes to ‘solar resistance’, we often hear the comment ‘it’s not worth investing in a solar power system now because loadshedding will be sorted out in the next year or two’,” says dHotman. “While nothing would make me happier than a sooner-than-expected end to loadshedding, this statement does not take into account 1) what it will actually take to fix the problem and 2) that the benefits of solar power are not just limited to not being affected by loadshedding,” he says.
Addressing the first point, Eskom board chairperson Mpho Makwana has previously stated that it will take between 18 months to two years to end loadshedding and that they hope to have an energy availability factor of 70% by March 2025.
Experts within Eskom and industry insiders have however repeatedly said that fixing loadshedding completely would require significant investment in the grid such as infrastructure upgrades and the building of new generation capacity. It would also require improved governance and transparent decision making. “As an example, to the mismatch in timing expectations, it takes seven years from the time a new substation project is identified until the building of that substation can begin; this because of all the required permitting, bulk planning and regulatory processes required. If it takes seven years to add one substation, how will we remove loadshedding in the next year or two?”
A positive development, however, comes in the form of the City of Cape Town’s effort to build grid resilience by encouraging Independent Power Producers (IPP). City officials have recently spearheaded a project to compensate IPP’s who generate excess energy. Any business that has solar panels on its roof can be compensated for generating excess electricity and selling it back to the City.
Another solution would be for the government to invest in renewable energy sources such as solar, wind and hydropower to reduce our dependence on coal and create a more resilient energy generation system. “This does however requires significant investment in the Eskom grid and transmission infrastructure, which is not a quick thing to turn around. Again, by way of example, in the most recent IPP bid window, 6 MW of renewables were ready to be added to the grid but only o1 was approved given grid capacity constraints,” says dHotman.
“While these measures can make a difference, there is no ‘quick fix’ to out loadshedding woes. Consumers should also anticipate paying even higher electricity costs as the country bears the financial burden of getting Eskom back on track,” says dHotman
Benefits of solar power that take loadshedding out of the equation
Those who wish to ‘wait it out’, have the option of a ‘rent-to-own’ solution rather than purchasing the entire system outright. However, dHotman stresses that investing in solar power offers financial and lifestyle benefits that go beyond an uninterrupted power supply:
1) Lowered operating costs. Solar systems offer a relatively low operating and maintenance cost once installed. Regular cleaning and occasional maintenance are typically all that's required to keep them running efficiently. Solar panels also have a lifespan of up to 25 years.
2) Reduced electricity bills: By generating electricity from solar panels, users can offset their reliance on grid electricity. This can result in significant savings on electricity bills - especially over the long-term.
3) Claim tax rebates. The 2023 Budget Speech announced that individuals can claim a rebate of 25% of the cost of solar panels, up to a maximum of R15 000.
4) Increase the resale value of your home. Depending on the existing value of your property, solar could increase the value of a property by up to 8% and help it to sell up to 20% faster.
“Finally, for green-minded individuals, investing in solar power is an excellent way to reduce your carbon footprint and embrace sustainability,” dHotman concludes.
