Solar geyser rebates shoot up

Eskom has increased the rebate amount on a 300-litre Solahart solar geyser from R4,918 to R12,097.

In a memorandum to all Eskom Demand Side Management (DSM) participants, Eskom's solar water heating programme manager, Cedric Worthmann, said the drastic increase in the rebate amount is a result of increased pressure from government "for solar water heating to play a significant role in reducing the current electricity constraints".

According to the memorandum, the new rebate amount has been calculated to allow a five-year payback period.

"This calculation is done taking into account the average cost of systems, average savings per system, average electricity tariff rate and cost of capital at prime interest rate per system size," Wothmann stated.

This announcement follows reports that the National Energy Regulator of South Africa (Nersa) will hold five hearings this coming week to review Eskom's controversial 45% tariff increase application.

According to Selected Energy managing director, Jim Hickey, the latest news from Eskom is a confidence booster to all industry players.

"We have long been calling for a larger rebate," said Hickey.

"In the solar water heating industry we know larger rebates to be the most effective way of improving the uptake of solar water heaters in South Africa. We believe that this step will go a long way in relieving some of the supply pressures Eskom has been experiencing," he continued.

"With the latest increase in the rebate amount, paired with Eskom's proposed tariff increases, I am confident that the payback period for a family of four will be significantly less than five years," said Hickey.

For more information click here to visit Eskom's website.

Readers' Comments Have a comment about this article? Email us now.

I suppose the rebate is between 5% and 10% of the price of the water heater. This is a joke. The rebate should be at least 60% of the price to encourage people to change. – Leon van der Linde

This proposed solar energy alternative remains far too expensive for ordinary people. On a 300-litre geyser, one would still have to spend about R18 000! People will convert in numbers only if they can pay off the geyser as part of their monthly electricity account. – P. Sulter

Has anybody noticed that the "list" price of solar geysers has gone through the roof, which makes a mockery of the current rebate? – M. Minnaar

Any financial support from government to make the purchase of energy efficient products is more than welcome. But what would really help if Eskom implemented a day and night rate "Smart meters" Make the public aware that it's cheaper to use electrical appliances in the night rate period. Lowers the demand when Eskom needs the most and saves the consumer money. Both sides benefit from a low investment. Which can be carried out on a large scale. – Anonymous

On the Eskom website the Solarhart 300l system costs R28,500 plus installation. ie Eskom subsidy is about 33%. – Anonymous

The way to convert is when your geyser bursts, or has to be replaced. Talk to your insurance company to pay you a cash settlement equivalent to what it would have cost to replace, combine that with the rebate, and all of a sudden the solar heater is affordable, and a no-brainer investment.

I am in this business for over 3 years and have observed the markets carefully. The main problem is Import TAX and certification madness that defeat the purpose of the whole exercise. If any one would be serious they should let this market develop itself.

In many cases it all seems to be about price. There is enough of information available on the WEB and other sources. If common sense would prevail it will make sense that many old traditions are true such as " you get what you pay for" . Also the handling of installations leaves a lot to be desired. I have seen this myself on sites South Africa.

It is not about a quick profit, it is about our environment. There are many systems that are very affordable and of good quality. These initiatives are systematically suppressed by Government agencies and Insurance companies and banking institutions which of course also want their slice of the Pie, as usual.

Taken all of this into account, any body can afford a Solar Water Heating system. – Wolfgang Hinz