NEWS
Buyer ’ s beware – cheap solar systems could cost you more
As the dreaded load shedding is set to continue in South Africa , and with a popular addition to many facilities in the cold chain today being solar photovoltaic ( PV ) solutions – caution is warned against opportunists .
South African businesses and consumers alike are increasingly rushing to solar solutions to fill the energy gap . However , buyers need to be cautious , as installing a poor-quality system could increase long-term costs by as much as 50 % according to solar experts – and thus reduce efficiency .
“ Solar systems should be seen as a longterm investment , which is why one needs to perform proper due diligence and research before selecting a service provider ,” notes Alumo Energy managing director , Rein Snoeck Henkemans .
As is the case - if something seems too good to be true , it probably is . Simply choosing the cheapest option , as is common in the local context , may well mean lower upfront costs , but can result in thousands of rands extra in replacing components , as well as maintenance and repairs over time .
To demonstrate the point , Snoeck Henkemans crunched the numbers to show how the expense of continuously repairing inferior solar systems can add quickly add up . Using three examples , he reveals the significant long-term savings value generated by premium solutions with longer warranty periods in comparison to the shorter warranties on cheap components .
In the first example , “ Cheap Chad ” opts for an inexpensive system which costs below R70 000 to install but offers a warranty period of just one year on the inverter and battery / bank . The worst-case scenario then happens , with breakdowns forcing Cheap Chad to replace his system just after each warranty period expires . After 25 years of continuous trouble , this means that Cheap Chad would have spent an overwhelming total of nearly R450 000 on his system .
In the second example , “ Halfway Harry ” opts for a middle-of-the-road system which costs about R100 000 to purchase and install , with system warranties of two years on the inverter and three years on the battery / bank . Like Cheap Chad , the worst-case scenario then occurs , forcing Harry to replace his system components just after each warranty period expires . After 25 years , this means that Harry would have spent a total of nearly R320 000 on his system – albeit over R100 000 less than Cheap Chad .
The third example , “ Alumo Jo ” picks a top-of-the-range system from a reputable provider who offers warranties of five years on the inverter and 10 years on the battery / bank , paying R140 000 for the installed solution . Like Cheap Chad and Halfway Harry , her system components then break down just after each warranty period expires . After 25 years , however , her longer warranty periods mean that she would have saved the most money on her solar system , spending a total of just R300 000 – a nearly 50 % cost-saving in comparison to Cheap Chad .
Notably , these comparisons are made on the basis of warranty periods , as the true average lifetime of systems after their warranty periods is not yet known . This is because the technology is not yet old enough to verify the average life expectancy of components with normal South African usage .
“ However , this simple comparison of the impact of warranties proves the importance of opting for high-quality systems for reducing your overall expenses ,” explains Henkemans . “ But it ’ s also important to consider factors such as whether your service provider will ensure that your system is installed correctly and in keeping with all the relevant regulatory requirements , and whether they offer proper post-installation support should anything go wrong . We ’ ve seen numerous cases of owners who have been unable to claim their money back after having a poor system installed by fly-by-night operators who have subsequently disappeared or gone broke , forcing them to contract yet another provider to help fix the problem .”
By contrast , quality systems installed by reputable providers offer the benefit of significantly longer lifespans , proper customer service and after-sales support , ultimately saving time , reducing additional costs and the headaches associated with low quality providers . CLA
Alumo Energy ( 2022 )
Graph : The long-term impact of system warranties on solar costs .
COLD LINK AFRICA • January / February 2023 www . coldlinkafrica . co . za 7