The 349% increase in solar rooftop PV reduced the residual load Eskom needs to meet during the day.<\/p>\n\n\n\n
It translates into less load shedding and more available energy for Eskom to restore its pumped hydro and diesel storage.<\/p>\n\n\n\n
However, it also means that these customers pay far less for electricity from Eskom and municipalities, putting their revenue under pressure.<\/p>\n\n\n\n
Many municipalities rely heavily on electricity revenue to pay their bills, and solar and battery backup is taking this money away from them.<\/p>\n\n\n\n
Earlier this year, the South African Local Government Association (Salga) warned that the government\u2019s solar tax incentive will aggravate the situation.<\/p>\n\n\n\n
Salga said<\/a> the incentive will drive solar installations and strip municipalities of their biggest paying customers.<\/p>\n\n\n\n They warned that increased solar and battery backup installation would erode Eskom and municipalities of their most important revenue source.<\/p>\n\n\n\n Speaking to Business Day TV<\/a>, Kgadima said that although Eskom and municipalities lose money from people getting off the grid, it has become necessary for households and businesses.<\/p>\n\n\n\n He said Eskom does not have a comprehensive plan to return enough capacity to service and has also not let go of \u201cextortionate tariffs\u201d.<\/p>\n\n\n\n \u201cAs long as electricity prices continue to rise at the current rate, residential customers will find alternatives to Eskom,\u201d he said.<\/p>\n\n\n\n The banking sector is facilitating the move to renewable energy by financing solar installations and off-grid solutions.<\/p>\n\n\n\n The impact of the increased use of solar PV and battery backup on the demand for electricity from Eskom is telling.<\/p>\n\n\n\n Kgadima said yesterday the electricity demand in South Africa was around 27,000 MW. A few years ago, it was 32,000 MW.<\/p>\n\n\n\n The low demand translates into lower electricity sales. In the 2016 financial year, Eskom sold 214 TWh of electricity.<\/p>\n\n\n\n By 2022, total sales have declined to 198 TWh. Kgadima predicted that it had declined further in the last financial year.<\/p>\n\n\n\n Eskom\u2019s lower electricity sales clearly illustrate that many South African households and businesses are generating their own electricity.<\/p>\n\n\n\n Kgadima said the migration away from Eskom will accelerate as the cost of producing solar power is lower than what Eskom charges.<\/p>\n\n\n\n \u201cThe price per kilowatt hour of a solar installation, financed by a bank, is much lower than what you need to pay Eskom or your municipality,\u201d he said.<\/p>\n\n\n\n Energy analyst Chris Yelland said the private sector has added tremendous electricity generation capacity in South Africa.<\/p>\n\n\n\n These include households and businesses installing rooftop solar and agricultural and industrial companies building solar farms.<\/p>\n\n\n\n There have also been rapid developments in virtual electricity wheeling in South Africa, with companies like Vodacom and Discovery leading the way.<\/p>\n\n\n\n These developments make South Africans less reliant on Eskom for their electricity needs, which does not bode well for the power utility.<\/p>\n\n\n\n Efficient Group chief economist Dawie Roodt said Eskom\u2019s poor performance<\/a> means the private sector is taking over its functions.<\/p>\n\n\n\n \u201cEskom is poorly managed and cannot provide reliable electricity. The private sector is stepping in to fulfil this duty,\u201d Roodt said.<\/p>\n\n\n\n \u201cEskom has already lost a third of its market. It will continue to lose customers and eventually come to an end.” <\/p>\n\n\n\n Although Eskom\u2019s generation part is set to die a slow death, its transmission network will survive and remain in state hands.<\/p>\n\n\n\n Building a national electricity network is very costly and time-consuming, and this is where a state utility makes sense.<\/p>\n\n\n\n \u201cThe transmission network is a natural monopoly. The state will most likely remain the owner of this network,\u201d Roodt said.<\/p>\n\n\n\n This article was first published by Daily Investor. Read the original here<\/a><\/strong>.<\/em><\/p>\n\n\n\n![\"Tshepo](\"https:\/\/dailyinvestor.com\/wp-content\/uploads\/2023\/04\/Tshepo-Kgadima-1-1024x576.jpg\")
![\"\"](\"https:\/\/dailyinvestor.com\/wp-content\/uploads\/2023\/06\/Chris-Yelland-1-1024x576.jpg\")
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