Not every property in South Africa can have solar
With record levels of load shedding and rising electricity prices, many South Africans are looking to solar energy solutions to keep the lights on.
Solar investments have also become more attractive, with the price of solar panels dropping and the National Treasury’s decision to introduce a one-year home solar incentive.
Standard Bank said that there has been heightened interest in solar, with over 625,00 users visiting the bank’s LookSee platform in 2022 – a 550% increase compared to 2021.
LookSee allows users to gain insight into alternative power solutions, such as backup power, solar and smart geysers.
The bank said it installed over 2,200 solar panels via the LookSee platform, which can produce 2,000 MW of renewable energy per year.
The average installation made via LookSee cost R176,000, and customers financed the majority of the installation (80%) via home loans while covering the remaining balance with unsecured loan options.
Although solar power installations require a large initial capital outlay, Standard Bank said electricity bill savings would help pay off the investment.
Pitfalls
While solar interest is definitely on the up in South Africa, the bank warned that the mitigation measures come with their own pitfalls.
Although customers may be tempted to fund solar panels by extending their home loan, the bank said that warranty periods for solar installations and associated batteries are generally between eight and ten years. Customers should ensure that the repayment period aligns with the warranty period, it said.
Moreover, many homeowners look at the cost and system sizes, but neglect to see if solar power on their property is even feasible.
Different areas and different properties capture varying levels of sunlight during sunlight hours, and each property needs to be assessed on a case-by-case basis for solar. On top of location, the angle of a property’s roof and positioning in relation to the movement of the sun are key factors.
Standard Bank said it has tried to provide a basic guideline for prospective solar users by creating the online Solar Score, which determines the solar power feasibility for a property.
Standard Bank said that Solar Score tool has increased the number of unique users to LookSee by nearly 3,000% since its launch in December last year, with the feature accounting for 32% of all visits.
The Solar Score looks at how effective a solar system could be at generating power while also providing estimated usable days of sunlight and the estimated electricity output produced on a person’s roof.
The scoring system works on a level of 0 to 100, with any score under 40 representing a property where solar would be of no use. Properties that score 60 or higher could consider going off the grid completely, if energy needs could be met.
This is how the scoring works:
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