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7 Reasons to Invest in Solar Power Systems in South Africa in 2021/2022

...and why its more affordable than ever before

Reason 1: If Your Choice = Eskom – OUCH!

 

South African customers are choking under the strain of excessive energy price increases in the VERY near Future. ...Your food money is being eaten up by Eskom, the prices are getting really high and it is becoming far better and affordable to purchase a solar system that will be cheaper in the longer term.

 

In total, Eskom were looking to secure a 45% increase over three years, 2019 to 2021. Nersa instead decided to grant them just 22.3%, sparking the utility’s decision to take legal action

 

As such that means that your cost per kilowatt hour will increase on average from R1.10 per kilowatt hour to R1.19 per kilowatt hour.

 

And now the embroiled service provider will be taking NERSA to court again too, which will take month of legal fees to be paid by either the government of Eskom. Either way, the tax paying Eskom users take the brunt once again.

 

According to a news24 report in January 2020, the CSIR reported that the South African economy lost in the region of R59 Billion in 2019.

now in 2020, although Eskom was able to avoid load-shedding through the higher Covid-19 lockdown levels , it was forced to reinitiate load shedding as industry opened again.

 

You can run but you cant hide. If you live in South Africa, and run off Eskom power you will be subject to load shedding, power account administration headaches, bankrupt municipalities, being switched off for non-payment and seasonal, excessive price hikes.

 

When you contrast this with a report on greencape, that "Solar PV costs in South Africa has fallen from an average of R3.3514 per kWh in 2011 to average of R0.90 per kWh , you realise that we are dealing with two polar opposite models.

 

Electricity from Eskom which is climbing exponentially every year, and Solar power costs which are decreasing annually as better and more efficient technologies his the market. In essence, to continue using Eskom , if you are a high end power user who relies on stability and a 99% uptime is to feel excessie pain in the future and have less and less money to put on the table every month.

Never in the history of Solar Power have Solar Panels and Batteries been so affordable, and not only have they become affordable but they are also really great quality that will last for years on end without failure. As mentioned already according to a report in greencape, that "Solar PV costs in South Africa has fallen from an average of R3.3514 per kWh in 2011 to average of R0.90 per kWh .

 

When you compare those number to the statistics recorded from a more efficient economy such as that of the USA, you realise we have so much further to gain. In a report by Sunshot2030, they reported that the cost per KWH in 2017 had dropped for residential- and commercial-scale solar have dropped from $0.52 to $0.16 and from $0.40 to $0.11 per kWh respectively".

 

We're only reaching those numbers now so we have a lot more room for even better rates in our future, in South Africa

Reason 2:

The Crazy Low Price Per KWH.

How much power does my kitchen use ?

Never before , in the history of renewable energy has the ability to install solar panels and provide solar power for your home, been more affordable and made the most sense.

In this following article, I will give you 7 reasons why investing solar power, in South Africa, makes the most sense in 2020 into 2021.

I will be covering the following reasons in detail :

  1. Keeping away from Eskom

  2. The current cost of solar panels per kilowatt hour

  3. South Africa's current interest rate

  4. The life of newer battery technology, such as Lithium batteries

  5. How installing solar panels can improve the resale value of your home

  6. The benefits of not having to endure load shedding

  7. How having your own power source improves your job prospects in this new work from home era

 

 

Reason 3:

The Super Low Interest Rate.

Reason 6:

You Can Survive Load Shedding in Comfort.

Reason 5:

It's a Means of Increasing Your House Value.

Reason 4:

Lithium Batteries Means Batteries Last Longer.

Never before has it been more affordable to borrow money for the items that will save you money in the future, with a bank loan it will be cheaper than eskom to have your power on while running on solar power and going GREEN!

Eskom ballooning debt problem which stands at R488 billion at the end of March. In the normal world, when you pay a company money to provide you a service, and it looks like they may not manage to provide that service in to the future, you tend to hesitate and find a better deal with a more stable company. In the past, before the advent of affordable solar power systems, South African's simply had now where else to go , to get their electricity.

However, with this rapidly lower price per kilowatt hour, there really is another alternative. It's time to invest in your future power, using a means that can keep producing, no matter what happens to the economy or Eskom's ballooning debt burden.

Even the initial burden of the high cost of installation is being rapidly removed for business and home owners, through a number of rental companies which make it possible to pay off a system monthly at the same or up to 30% less than what they are currently paying Eskom.

Yes you heard right. You could pay up to 30% less per month, and have a solar system installed in your business , without the immense outlay which the system installation have required in the past. For those who choose a full ownership model, the interest rate in South Africa is at it's lowest in history. this means that a loan from a reputable institution is currently at it's most affordable ever.

Solar panels cost per KWH have decreased dramatically over the last few years

how to finance a solar power system

Like many South African's you don't want to harm the earth by having to throw away batteries every 4 -5 years

Thankfully new Lithium battery technology means your Solar Power System can be powered with batteries that can now last you up to 20 years without replacement. These batteries also have the ability to be completely discharged but still run for a very long time.

 

Conventional solar batteries used lead-acid and had an average life of 3 years, on a solar power system. That means every 3 years, you have to have enough money , that added up to about 40 -50 % of your solar power system retail value, just for battery replacements.

 

To top it, if you use lead-acid solar batteries, on your solar power system, you will not be able to use the same bank of batteries, should you choose to extend your solar power system to allow for a greater amount of power in your house or business.

 

There are 3 main benefits to using lithium batteries on your solar power system.

1) They can last well over 10 years and even up to 20 years compared to only 3 years with lead-acid batteries

2) They take up a far smaller amount of wall and floor space compared to lead acid batteries. This is simply due to newer technology fitting into smaller spaces

3) The cost of the lithium battery over it's lifetime is FAR SMALLER than that of Lead-acid batteries. Lithium-ion batteries will last between 10 -20 years and only cost around 14 % more as aposed to lead acid batteries which needs to be replaces every 3 years

4)A Battery power storage for a Solar power system can be easily expanded by using Lithium-ion batteries. You simply purchase more batteries and plug them in . This is not the case with Lead-acid batteries, which will need to be completely replaced every time you choose to expand the battery storage size of your existing solar energy system or solar panels.

 

Solar Battery life, Solar off-grid system

Through simply installing an alternative energy source, you can easily just add a whopping 30% extra value on to your house, in a stagnant market, where people are much more keen to invest in a home that already has a solar system

YAY!

According to statistics in Australia reported by Momentum Energy, "This indicates a rise of over $29,000 in the retail value of the home for a 5kW installation."

In South African terms that translates to and increase of R290 000 in home value. But why is that you may be asking. Well many people would love to live in a home that runs off a Solar Power system, without having to have the direct hassle, although minimal, of installing a Solar power system themselves.

It's awesome to be buying a home where you will have no to minimal monthly electricity bill and where you wont be held hostage by a corrupt electricity supplier and you know for a fact that load shedding will no longer create a danger to you and your family and your income earning abilty.

Other studies done in the USA, by the National Renewable Energy Laboratory have calculated that for every $1 saving in a home owners energy bill, an extra $20 is added to the marketable value of the home. For South Africans that means every R15 saved amounts to an extra R320 on to the marketable value of the home. For recent home owner in Plettenberg bay, one of our recent solar power system owners is now saving 70% on his original electricity bill, before he even moved his solar geyser onto solar

 

So if you have an energy bill of around R4000 a month, you can expect to save around R2 800 per month on a basic off-grid system, that does not factor your solar geyser usage in. That translates to a home market value increase of around R60 000 !

 

As home solar power is relatively new in South Africa, accurate statistics on the value increase are not yet know yet. However based on these two estimates above, you are looking to be able to increase your home marketable value by between R60 000 and R300 000, based on the size of the solar system you install, and the area where your home is located.

 

That's one of the easiest, happiest renovations you could make to your home to date!

 

 

How do you cool and heat your home with Solar Power systems?

As an energy using in South Africa, the onset of load shedding by Eskom has proved increbibly disruptive to the average home or business owner.

Imaging being able to avoid the following events :

  • Fridge and freezer defrosting while you're away for the weekend

  • Being left in the dark in a risky area such as a farm , when the lights go out in load shedding

  • HAving no security system to call any security companies in the even of a burglary

  • Having no way to charge your cellphone when you get home from work, and being left stranded without communication

  • No ability to work from home during load shedding, which is risking your job opportunites

  • Having no access to entertainment or wi-fi access during load shedding

  • No means to cook your food after a long day at work

 

I could go on and on, but Im sure as a South African, living in this country for the last 5 years , you have had some sad experience to this effect.

With a Solar power System these issues can be prevented and minimized quickly . Even if you can't afford a full solar system, being able to start with battery backup system as your funds allow, will already allow you room to breathe in these issues.

 

Pool pumps, Garden accesories running on Solar Power

Now you too can work from home, or even look for that higher paying opportunity for a work from home job that you always dreamed of ! With a Solar Power System at home there are no delays in getting the things you want to get done, done.

 

Following the advent of COVID-19, many business owners have made it the norm for their staff to work from home where possible. As lockdown's the world over ebb and flow, this appears to need to become the standard to help future infection rates. According to an article by review 42, 30% of telecommuters save upward of R80 000 a year, with comapnies saving in the region of

R176 000 annually for each employee that works remotely, half-time.

 

With company budgets being squeezed to the maximum and employees hanging on to what ever they can job wise, while looking for any and all side-hustles that can help them out, being able to keep the power, wi-fi, cellphone, PC's and home office devices on all day is very much in everyone's interests.

 

 

 

 

Reason 7:

Working From Home is Viable.

Home Security powered off Solar Panels

There you have it. 7 compelling reasons why installing a Solar Power System for Home or Business really makes brilliant financial sense in 2020 / 2021 . Not only that, but you will look like a genius to your friends and family when you have more cash to put on the table at the end of every month end, not to mention the huge savings once your system is fully paid for an you can quickly get your home paid off, or add that huge mark up to your home when you decide to sell.

All the while living comfortably in a home where the lights are always on, and the income machine is in full swing any time of th day or night, while living safely with your family in one of the worlds most beautiful nations !

 

In Summary

 

Steps to Take Next

 

If you are in need of a compelling argument to get a solar power system installed in your home or business, then please go ahead and share this article with your friends and colleagues on social media.

 

Get the FREE Checklist & Worksheet

Want to know what this article is about quickly.....watch this quick video below ....

Why Understanding Solar Panel pricing will make you look like a genius🧐...which will save you Hundreds of Thousands of Rands in the Future

 

SA's Prime Lending Rate

Even for an average home owner, the cost of ownership on a solar system for a 3 bedroom house, with an electrical bill of R4000 per month, a simple bank loan is now more than achievable.

According to the online standard bank calculator , a loan of R150 000 , with equivalent repayments to the eskom monthly charge of R4000 will be paid off by May 2025 if started in November 2020. (**based on 10.25% interest rate)That's a repayment period of 4 years and 6 months for well sized solar system that will continue to run a house with many appliances, using power in the region of 5 -7 kwh , well into the future. Had you stayed on eskom, you would have had an exponential cost curve to cope with that accumulates every year on top of the already inflated power prices.

Basically from an investment point of view, investing in Eskom does not make financial sense. Investing in yourself with the help of a rental company of a bank loan, means static charges for the next 4 - 6 years and then only battery investments need to be made ever 20 or so years after that, and you can invest your R4000 per month going forward in better , more stable companies than Eskom, to secure your future.

 

 

If you would like to start leaning how you can understand more about solar power system for your home and business, why not take the discussion a little further with our article on 10 simple steps you can take to find out how much a solar system for your home costs in South Africa

 

 

By simply downloading the free checklist and worksheet below, you have shown us that you are serious about your journey forward.

As such we will be sending you a very special email in the next 24 - 48 hours , which will help you on your next step.

 

This email will contain a link to the next video and article in this series, helping you understand the 3 main types of solar systems that exist, and how to understand which type would best suit your needs , as a home owner.

 

 

 But remember, you need to download the checklist, in order to access this next article and video. The link can be found below. Go ahead, download the resource, and set yourself up for a successful, effective understanding, of how solar power will improve your life and give you more spending power in the future !

 

Thank you for watching, and we look forward to seeing you at the next video, armed with a better understanding of your power usage!

I'm even including a handy info graphic to help you with your discussion. Simply click on the button below to download the 7 reasons in graphic form .

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