CONTRIBUTOR
Solar PV panels convert solar radiation ( sunlight ) into electricity . The more sunlight the PV panel is exposed to , the more current it generates . Maximising exposure will also maximise the amount of electricity it generates in the form of direct current ( DC ) electricity , which is not compatible with the electricity found in many homes or offices .
Inverters are needed to convert this DC electricity to alternating current ( AC ) electricity found in buildings . Therefore , major components for any PV system consist of the PV modules , that supply DC electricity to the inverters , which in turn supply AC electricity to the balance of system , which consists of the different electrical and safety equipment .
systems are relatively high when compared to non-renewable energy sources , such as diesel generators . However , unlike non-renewable energy sources , PV has no fuel costs and low operation and maintenance costs . It should therefore be considered as a long-term investment .
Solar PV ’ s financial feasibility is calculated through the offsetting of the electricity consumed from the local network , which results in a reduced electricity bill . If you compare these cost savings against the cost of repaying a loan , there is often a strong case for solar if finance is structured correctly .
Higher electricity prices have also resulted in a more feasible financial model for a PV system . Larger PV systems offer lower energy costs over the PV system ’ s lifespan when compared to smaller systems , due to the lower installation costs .
LIFESPAN AND COSTS OF SOLAR PV
Most solar PV panels on the market today come with a warranty of 25 years , meaning that the power output will not be below 80 % of the rated power until after 25 years of service . Other components , such as the inverters , must be replaced after every 10 years of service – an important cost to consider .
OUR LEADING CLASS RENEWABLE ENERGY RESOURCE : THE SUN
Solar PV systems use solar radiation to generate electricity . Africa has an abundance of solar resources – even the cloudier regions are more suitable for PV than the best regions in some of the leading countries for PV , such as Germany and Japan .
SUITABLE IMPLEMENTATION
Solar PV systems can operate as stand-alone units or be tied to the local electricity network .
Small-scale stand-alone units are commonly used in remote areas that are not connected to the grid . In typical stand-alone units , battery packs are installed for night-time operation . The electricity from small-scale stand-alone units is used for powering domestic appliances such as radios and refrigerators .
Grid-tied systems are connected to the national power grid . These systems are becoming increasingly popular , with many households installing small grid tied PV systems .
SOURCE : SOLARGIS
Greater reliability and adoption of Renewable Energy , Battery Energy Storage Systems ( BESS ) The business case for lithium-ion batteries improves as prices continue to decline at a rapid rate ( see graph below ), enabling a solution for countries that are facing electricityrelated challenges , including variable renewable energy generation on their power systems , load-shedding and steep increases in electricity costs .
The above map indicates the available solar resources across the globe for one year . You will note much stronger red colour across Africa compared to most other continents . This means we receive higher levels of sunlight per square meter than many other parts of the globe . While many countries require subsidies to make solar viable , our subsidy comes through the abundance of solar radiation we receive .
FINANCIAL CONSIDERATIONS FOR YOUR BUSINESS AND HOUSEHOLD WHEN INVESTING IN SOLAR PV .
The price of PV systems has declined significantly in the last decade . Despite this reduction , the initial capital costs of PV
SOURCE : BLOOMBERG NEW ENERGY FINANCE www . saaffordablehousing . co . za SEPTEMBER - OCTOBER 2021 19