The data is in – Now is the best time to buy a solar system in South Africa
Standard Bank LookSee recently launched its Solar Loan solution, which is the best way to buy a home solar system without incurring a hefty upfront payment.
Your loan of up to R300,000 is capped at Prime +2.5%, can be paid off in 1-5 years, and allows you start saving on your electricity bill from day one.
“A solar system is a producing asset and offers a real offset opportunity,” said Marc du Plessis, Executive Head of LookSee.Thanks to LookSee’s unrivalled loan product and current market conditions, this “offset opportunity” is the best it has ever been.
We explain what this means, in simple terms, below.
Real-world example
Let us presume you buy a R184,000 solar system for your home that includes the following:
- 8kW inverter
- 10kWh battery
- 12 solar panels of 545W each.
The system is capable of on average producing 991KWh per month, if we assume it generates power for 5 hours a day.
Using an average electricity price of R2.51 per kWh, you would generate just under R2,490 of electricity each month based on the above assumption.
Over 5 years, subject to a number of variables, such as ensuring you consume all of the available solar power produced, your solar system could generate electricity worth approximately R150,000 at current pricing.
It is important to note that this figure of R150,000 does not account for future electricity price hikes – which may elevate the value of the total electricity generated far beyond the R184,000 value of the solar system.
Thanks to the savings on your electricity bill alone, your entire solar system could therefore be paid off in 5 years.
You would then continue to benefit further in the years after this, saving thousands each month, while never having to worry about load-shedding again.
The graph below shows how the offset potential of solar systems is the best it has ever been.
Why solar is a great investment
Alongside LookSee’s great loan product, two market-related factors are to thank for the unprecedented value of investing in solar in 2023.
Increases to Eskom electricity prices comprise the first factor – including the most recent annual increase of 18.49% to municipal customers, and 18.65% to Eskom’s direct customers.
When electricity prices increase, this lowers the time it takes to break even on your investment into a solar system.
The second factor is the reduced cost of solar panels, inverters, and batteries in South Africa.
Earlier this year, there was a huge spike in the importing of this equipment which created a more competitive solar power market.
“Pricing is up to 30% lower than it was,” said du Plessis.
“Eight months ago, a 5kW system was around R150,000. Now they cost R110,000.”
Invest in solar today
Thanks to the market conditions described above, there has never been a better time to invest in a solar power system.
A solar loan from LookSee is the best way to maximise your investment by offsetting some of the cost of your inverter, battery, and solar panels against the electricity you generate – and the monthly electricity bill savings this delivers.
“LookSee was born out of how to reduce the cost of home ownership,” said du Plessis.
“Our mission is to make owning a home more affordable, and solar loans are one of the ways we are making that possible.”
Click here to get a solar loan.
Brought to you by LookSee.
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