The profusion of rooftop solar panels across SA is beginning to have an impact on the severity and frequency of load shedding.
It’s estimated that private sector electricity generation will outstrip that of Eskom by 2025. Stats from Eskom show the country had more than 5 000 megawatts (MW) of installed rooftop solar at the end of November, more than double when compared to a year ago.
We also know from government stats, as well as importers like Bidvest, that battery, solar and inverter imports are booming as businesses and residences race to free themselves from Eskom’s creaky grid. Imports in solar-related equipment in the first half of 2023 were equal to the entire value of imports for 2022.
This, however, does not reflect the potential for solar to help solve SA’s energy crisis.
Potential
A calculation by Marc du Plessis, head of LookSee, Standard Bank’s home efficiency platform, and looking just at the number of Standard Bank home loans of more than 400 000 freestanding homes, suggests this has the potential to generate 1.8 gigawatts (GW), equivalent to a Koeberg power plant or to two stages of load shedding.
The calculation assumes an average roof size of 183.16m², 25% of which is usable for rooftop solar panels.
“If you extrapolate this across the entire country, you get a sense of what rooftop solar can do for the country’s energy crisis,” says Du Plessis.
“We are already seeing massive uptake in rooftop solar systems from people trying to free themselves from load shedding. Apart from helping ease the burden on the country’s electricity grid, it has a beneficial impact on carbon emissions.
“South Africa has massive solar potential,” he adds.
“Take the Karoo, for example. It has great sunshine throughout the year, but there is no access to the grid. KwaZulu-Natal has good solar potential, not as good as the Karoo, but it does have grid access.
“To really get the benefit of SA’s solar potential, we would need to see a substantial upgrade in the grid, which is not likely to happen in the immediate future. This would make it easier for Eskom and local municipalities to buy surplus power from these solar panels, but at the moment this is not a major reason for people buying solar systems.
“The main reason is to reduce reliance on an unstable grid and avoid load shedding.”
| Solar rooftop potential of Standard Bank’s home loan book | |
| Number of standalone homes | 400 000+ |
| Estimated total roof space | 73 265 096m² |
| Estimated average area per roof | 183.16m² |
| Usable roof space for solar; conservative estimate at 25% | 45.79m² |
| Roof space required for eight 550W panels | 20m² |
| Total number of panels (eight panels each on 400 000 homes) | 3 200 000 |
| Solar panel potential (kilowatt peak) | 0.55kW |
| Total generating potential (kilowatt peak) | 1 760 000kW |
| Total generating potential (megawatt peak) | 1 760MW |
| Total generating potential (gigawatt peak) | 1.8GW |
| This is equal to: | |
| 1. Almost two stages of load shedding | |
| 2. Koeberg power station ( 1 940MW maximum) | |
Source: LookSee
Unlike many other countries, most South Africans are unable to sell surplus power generated from these solar panels back to the grid, though qualifying residents in Cape Town can sell power back to the city for R1.24 per kilowatt-hour (kWh). For that, they need to purchase bi-directional meters that allow electricity to flow to and from the grid.
Tshwane has also announced a plan allowing residents to apply to sell surplus power back to the city.
Under a new scheme introduced in the 2023 Budget, South Africans can claim a 25% rebate on the cost of solar panels only, up to a maximum of R15 000.
Many other countries have far more generous incentives for investment in solar systems. South Australia, for example, has more than two gigawatts of solar generating capacity, with about one in three households sporting solar panels. This accounted for over 20% of the state’s electricity generation in 2021. The average 6.6kW solar system in South Australia enjoys a subsidy of approximately A$2 600 (R32 300).
LookSee’s Solar Loan scheme
LookSee’s recently launched Solar Loan scheme is designed to appeal to the needs of most power consumers: loan sizes range from as little as R3 000 up to R300 000, with interest rates capped at a maximum of prime plus 2.5%. This is a substantial discount on the prime plus 7% offered on personal loans, or the maximum prime plus 17.5% mandated by the National Credit Act.
The Solar Loan scheme allows households to take advantage of the government’s home solar tax incentive, announced by Finance Minister Enoch Godongwana in the 2023 Budget speech.
Those seeking to take advantage of this must act before 29 February 2024. The tax rebate allows individuals to claim 25% of the cost of solar panels, up to a maximum of R15 000. The rebate does not apply to batteries, inverters, portable solar panels, fittings, diesel generators or installation costs.
For more information, click here.
Brought to you by LookSee.
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