Should this pattern continue over the next decade , the leasing model is vastly preferable to clinging to the hope that Eskom will be fixed any time soon , or that its electricity tariff increases will moderate . It is currently asking the National Energy Regulator of SA ( Nersa ) for a 32 % increase .
“ These companies ’ annual fee increases are pegged to consumer inflation , while Eskom ’ s average tariff has increased more than 750 % since 2007 , while inflation has gone up 134 %.”
Going the subscription route has the added benefit that the company will maintain and upgrade equipment as and when needed .
Asset-backed solar finance STANDARD BANK
Standard Bank offers a range of financing options from access bonds ( for which there must be untapped equity in the home ) and asset-backed finance to personal loans and instalment sale / leasing . The average cost of a solar panel system financed through the bank is about R170 000 , with a property value of about R2 million .
This is a large capital spending item relative to the home value , in which case the leasing option , with the solar panel supply company responsible for maintenance , could potentially be the safer route .
“ One of the advantages of installing a solar power system is that you start to pay attention to how your energy is being consumed , and that encourages you to adjust your energy consumption ,” says Standard Bank ’ s Barker .
He points out that a R170 000 solar system with a 7kWh inverter should
SA Real Estate Investor Magazine OCT 2022 137