Solar power boosts property value and is cheaper to operate

Some South Africans continue to put off investing in alternative power sources in the hope that load shedding will be resolved in the coming years. But it is time to be pragmatic.

Solar power comes at a hefty price, but it provides immediate lifestyle returns and financial peace-of-mind in the long run. Eskom first began implementing ongoing power cuts, or load shedding, in November 2007.

The country experienced a six-year reprieve before load shedding made its dreaded return in 2014, with sporadic blackouts until March 2021, when it started again in earnest.

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The root cause of the energy crisis lies in aging infrastructure, mismanagement of funds intended for upkeep and a failure to add additional generating capacity to power plants in the early 2000s under President Thabo Mbeki’s regime, despite dire warnings from Eskom management.

Using figures from EskomSePush and the Council for Scientific and Industrial Research’s Energy Centre, we have experienced an estimated 7 777 hours of loadshedding from 2021 to May 2023.

Every one of those hours translates to the inability to cook a hot meal, lost productivity and in the worst cases threatens the health and safety of the most vulnerable groups – the sick and the elderly.

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The majority of South Africans have simply adapted their lives around the load shedding schedule: cooking at different times, charging devices during electricity windows, buying candles and investing in devices that keep certain appliances on without power.

But these are hours we can never get back and we have no real guarantee of when load shedding will end – if it ever will. We often hear the comment “it’s not worth investing in a solar power system now because load shedding will be sorted out in the next year or two”.

This does not take into account what it will actually take to fix the problem and that the benefits of solar power are not just limited to not being affected by load shedding.

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Eskom board chair Mpho Makwana has previously stated that it will take between 18 months to two years to end load shedding and that they hope to have an energy availability factor of 70% by March 2025.

Experts within Eskom and industry insiders have, however, repeatedly said that fixing load shedding completely would require significant investment in the grid such as infrastructure upgrades and the building of new generation capacity. It would also require improved governance and transparent decision-making.

The City of Cape Town has made an effort to build grid resilience by encouraging independent power producers (IPPs). City officials have recently spearheaded a project to compensate IPPs that generate excess energy.

Any business that has solar panels on its roof can be compensated for generating excess electricity and selling it back to the city.

Another solution would be for the government to invest in renewable energy sources such as solar, wind and hydropower to reduce our dependence on coal and create a more resilient energy generation system. However, this requires significant investment in the Eskom grid and transmission infrastructure, which is not a quick thing to turn around.

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In the most recent IPP bid window, 6MW of renewables were ready to be added to the grid but only 1MW was approved given grid capacity constraints. Consumers should also anticipate paying even higher electricity costs as the country bears the financial burden of getting Eskom back on track.

Investing in solar power offers financial and lifestyle benefits that go beyond an uninterrupted power supply:

• Solar systems offer a relatively low operating and maintenance cost once installed. Regular cleaning and occasional maintenance are typically all that’s required to keep them running efficiently. Solar panels also have a lifespan of up to 25 years.
• By generating electricity from solar panels, users can offset their reliance on grid electricity. This can result in significant savings on electricity bills.
• The 2023 budget speech announced that individuals can claim a rebate of 25% of the cost of solar panels, up to a maximum of R15 000.
• Depending on the existing value of your property, solar could increase the value of a property by up to 8% and help it to sell up to 20% faster.
• Finally, for green-minded individuals, investing in solar power is an excellent way to reduce your carbon footprint and embrace sustainability.

dHotman is head of ooba Solar