How much it really costs to go off the grid

As many South Africans and businesses continue to suffer from Eskom’s energy blackouts, going off the grid was becoming a serious consideration for many, according to experts.

According to Eskom CEO Andre de Ruyter, it will take another 18 months to end load shedding as the cash-strapped power utility tries to improve its maintenance programme.

Energy analyst Chris Yelland said though most South Africans could not afford to go off the grid, Eskom’s mounting problems were forcing people to look for alternatives.

He said depending on what one’s electricity usage was, the price for a fully installed solution varied, but standard domestic installations could cost around R200 000.

“It does not make sense to go off the grid at the moment because people cannot afford it, but with the increasing price of electricity and the poor service from Eskom it is starting to make sense for many people,” said Yelland.

Laurie Wiid, a manager at NFB Private Wealth Management, agreed with Yelland, adding that people could reduce energy consumption by converting geysers to a gas or solar system and using low-energy globes.

“The only viable means to reduce your municipal consumption would be to invest in solar geysers and solar powered inverters. The initial outlay of capital can be anywhere from R120 000 to R350 000, depending on your required electrical consumption. It is, therefore, advisable to obtain a few quotes from reputable electrical installers,” said Wiid.

Graphic: Costa Makola

Wiid said the efficiency, capacity and consumption of a diesel generator for a 24-hour period was unlikely to compete with municipal power rates.

“My estimates are that a generator would cost at least three times the cost of Eskom power,” he said.

Wiid said most of the batteries were imported and solar panels were locally manufactured, and the price for the end user factored in the costs of importing the technology. He said going off the grid completely would still be very expensive, compared to paying Eskom tariffs.

“We do not always have good weather so your solar panels might not always be generating power. So it’s not really about going off the grid, it’s about minimising your Eskom power usage,” he said.

Meanwhile, the South African Wind Energy Association and the broader renewable energy sector said the industry was immensely relieved by President Cyril Ramaphosa’s firm commitment to the renewable energy procurement programme (REI4P) as stated in his State of the Nation address last week.

The South African Wind Energy Association said in addition to driving REI4P by opening bid window 5, the department of energy will work with energy producers to accelerate the completion of window 4 projects.

“The industry is immensely relieved to receive such strong support from the president, who acknowledged the key role the renewable industry has to play,” said Ntombifuthi Ntuli, the association’s CEO.

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