Looking to go off the grid with solar panels? Prepare for these costs

Published on 20th March, 2023 at 12:05 pm

Loadshedding is becoming more of a fixed reality as the weeks go by, and with increasing electricity tariffs, there are more reasons to consider energy alternatives for the home. But is an investment in solar energy really worth the price tag?

Reading time: 3 minutes

In this article you’ll learn:

• About the current state of energy supply in South Africa.
• Why solar power is a popular energy alternative for South African households that can afford it, and how much this can cost.
• How your Sanlam Reality entertainment benefits can help ease the strain on your household budget.

A day in the life of any South African starts the same way: getting up, preparing for the daily hustle, and of course, figuring out how to navigate the day ahead with loadshedding. It’s stage four, then stage five, with the threat of stage eight ever looming… It feels like a full-time job on its own! From our homes to our offices, and everything in between, the reality is that it impacts all of us in some way.

We often hear that solar energy is the answer: “Just slap a solar panel on the roof!” people say. But is that a realistic solution? We take a closer look.

Where is South Africa at?

• South Africa has experienced loadshedding since as far back as 2007.
• In February 2023, President Cyril Ramaphosa declared a National State of Disaster due to the energy crisis.
• South Africa’s total energy demand is over 28 799MW, according to ESI Africa, but Eskom’s current capabilities leave a deficit of thousands of megawatts.
• The deficit comes from failures at major coal-power stations, according to BusinessTech, and limited funds to buy alternatives like diesel.
• Some experts believe loadshedding will continue until 2027, according to Mail & Guardian.

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The cost of solar energy

The initial outlay of home solar energy requires solar panels and an inverter that will convert the power you capture into electricity.

According to the experts at Solana Energy, the initial costs can be significant. Basic packages can cost between R60 000 and upwards of R350 000 for a single home. A local bank recently calculated that a household that spends R2 500 per month on electricity will need to invest as much as R190 000 for solar power. Thus, the household will only start ‘saving’ money after about 76 months. In the meantime, of course, they’ll enjoy an uninterrupted energy supply (during the warmer months, at least).

Having crunched the numbers, it’s clear: solar power is an option a select few can consider to bridge the power gap and lessen the pinch of increasing power costs on household budgets.

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Solar energy and your finances

• Finance minister Enoch Godongwana declared that South African households will receive significant tax rebates for solar panels from March 2023.
• According to Andrea Tucker, director of home finance originator MortgageMe, solar panels can also be financed through banks, who can extend home loans to cover packages. There is also the option to look for subscription-based solar power services, or even rent-to-buy options.
• There are potential risks when installing solar panels without professionals, according to My Broadband. So always use a trusted and accredited company.
• Take caution: with solar panels in such high demand, they’re becoming hot property for theft. Assess your property’s security measures before having solar panels installed to avoid a nasty surprise.

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