The average solar power system financed by Standard Bank starts at about R100 000 , which typically covers the cost of a 5kW inverter system , solar roof panels , battery backup and installation .
This system will be sufficient to run a few computers , lights and some appliances , but not power-guzzling ovens , kettles and heaters . The price covers the cost of installation , with the solar power system wired to power just the most essential appliances , such as computer , TV and lights .
If your monthly consumption is much higher , at around 2 800kWh ( kilowatt hours ), and you require a system to wean you almost totally off the Eskom grid , you can expect to pay as much as R570 000 for a 24kW inverter system with 17.39kWp of solar photovoltaic ( PV ) panels . kWp is a reference to the kilowatt peak output of a solar panel system .
If you ’ re currently spending from R1 000 to R10 000 per month ( for around 400kWh to 4 000kWh of electricity ) or more , Looksee will provide a home power analysis that will right-size a system for your requirements .
Nedbank ’ s solar partner , Hohm Energy , offers a useful tool to determine what size system you need , given your current consumption and expenditure on electricity .
Home loan equity
The most cost-effective way to finance one of these systems appears to be tapping into unused equity on your home loan . The danger here is that you end up financing a solar power system over the remaining life of the mortgage bond , which could be close to 20 years – making the capital outlay expensive over the long term .
Using the mortgage calculators provided by the banks , a R170 000 solar system repaid over 20 years at a prime rate of 9.75 % will cost R1 613 a month . Over 10 years , the same system costs R2 223 a month , and over five years R3 591 a month . If you don ’ t want to overpay for your system , this gives you a guide as
SA Real Estate Investor Magazine OCT 2022 135