Real Estate Investor Magazine South Africa June/ July 2019 | Page 62

INVESTMENT
Investing in home solar
A steep but profitable investment
S
outh Africa has an excellent and almost constant supply
of solar energy, making it amongst the top countries in
the world suitable for investment in solar energy. Solar
energy is produced through photovoltaics (PV) or solar cells,
which are electronic devices that convert sunlight directly into
electricity. Southern African Universities Radiometric Net-
work (Sauran) map details that South Africa is a prime spot
for investment in solar energy.
South African National Energy Development Institute
(SANEDI), General Manager of Energy Efficieny, Barry
Bredenkamp explains that there is an increase in investment
in solar energy.
“The number of finance specialists offering to help fund
home solar installations is on the rise and I am of the opinion
that the financing houses (private sector as well as banks),
are definitely more open to offering finance for home solar
systems.”
SANEDI is a government established organisation which
directs, monitors and conductions applied energy R&D,
demonstration and deployment along with undertaking
specific measures to promote the uptake of green energy and
energy efficiency in South Africa.
Bredenkamp adds that the use of solar energy and
implementation of mechanisms regarding solar energy are
becoming a regular occurrence.
“Solar technology is mature and proven, however, even
more important than this is that it is becoming better known
and accepted in the consumer market as well as by the
financing houses. The modern solar cell, in panels installed on
house roofs for hot water supply, is a common sight.”
Besides eliminating or minimising one’s Eskom bill, the
main aim of home solar is to match prices with the market
leader.
“When viewing the deals offered by finance specialists for
home solar, compared to a bank loan or a monthly Eskom bill,
the current aim is to reach cost parity as closely as possible in
terms of meeting the market needs of cost vs energy security
and independence implied by these systems,” said Bredenkamp
Costs versus needs
Bredenkamp shares that the costs surrounding the
installation of solar power in one’s home are dependent on
what kind of system one requires. Home owners would need
to tailor their solar system to what they can afford and require
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JUNE/JULY 2019 SA Real Estate Investor Magazine
as each benefit comes with a price tag.
He adds that there are various ways one can install solar
energy, either partly or fully – reducing the use of power from
a non-renewable source.
“Decide how much electrical needs one wants to supply
with solar electricity. One does not have to meet all of one’s
demands with PV technology for example. One could just
install enough to drive essential appliances and a few lights.
Consider also the cost and benefit of switching to a solar water
heating technology, which generally consumes approximately
45-50% of the electricity required in a home.”
Consumers must be able to differentiate between providers.
Bredenkamp advises that potential home solar owners asses
two main areas when making the choice to shift to solar –
these factors include the capital costs and the ‘payback period’
(the amount of time required to save on traditional energy
costs and cover the capital costs of the system). There is a
shift to move towards home solar as individuals are the desire
for energy independence, energy security and long-term cost
benefits.
“The service provider with the best scenario/projection
for these things, while still providing quality and after sales
service, would be a good one to consider. I often find that
a spreadsheet of costs and benefits comparing providers is
helpful when making these decisions.”
According to Bredenkamp, most payback periods range
between two to seven years and are dependent on the system
specifications chosen to address ones needs.
‘Off grid’ not the solution
Bredenkamp explains why he believes that home owners
should not completely go ‘off the grid’.
“However, I would not advocate going completely ‘off the
grid’, with respect to one’s electricity requirements, but rather
consider one’s energy security and availability for immediate
maintenance and repair should something go wrong and
require adjustment. Also remember that one pays anyway to
remain connected to the national grid in terms of property
rates (in most cases), so why lose that back up?,” he said.
Utilizing solar energy does not only reduce dependence
on a national provider but also lowers a home owners carbon
footprint as sunlight is efficient, free and clean. Bredenkamp
says that it is “well worth the initial expenditure”.
RESOURCES
SANEDI/ Litha Communications