• Versofy SOLAR believes solar power solutions can help address financial strain that municipal tariff hikes have brought to the fore.
• At the beginning of July, the City of Joburg raised electricity costs by 12.7 percent.
• While there are initial costs to consider, Versofy argues that long-term benefits of solar outweigh the immediate outlay.

The beginning of July has proved a tough time for South Africans. Along with being the peak of the Winter season, some municipalities have been impacted by load reduction, along with tariff hikes being implemented. It has therefore made the cost of electricity, and consequently, the cost of living untenable for many.

In the City of Johannesburg municipality in particular, a 12.7 percent increase has been put into effect at the beginning of this month, along with several other increases to services. Added to this is a new R200 fee (excluding VAT) that prepaid meter owners need to contend with as well, these additional costs begin to mount up.

There may be some respite, however, in the form of solar powered solutions for the home. While the country recently passed the 100 day mark of no loadshedding, the aforementioned costs are now the new element crippling many.

Here, Versofy SOLAR co-founder and CEO Ross Mains-Sheard (pictured below), explains that solar power provides a potential long-term solution.

“The decision to switch to solar energy is a sensible one to make, now so more than ever. A good starting point is understanding how solar technology contributes to overall energy efficiency in residential homes. Foremost in most South African consumers’ minds is the reduction in electricity bills that solar power can provide,” he advises.

“The use of solar energy reduces the need for electricity from the grid, leading to significant savings on energy bills. Solar power also boosts a home’s energy independence by enabling homeowners to produce their own electricity as a safeguard against inevitable future tariff hikes. Residential solar power also supports the much broader goal of decreasing the country’s dependence on fossil fuels, a major contributor of the greenhouse gas emissions associated with climate change,” he continues.

Mains-Sheard is also aware of the recent developments when it comes to securing solar panels from foreign suppliers, as a 10 percent import tax is now being applied. While that may impact decisions for local homeowners, the overall costs from overseas suppliers are still quite competitive.

“Until local companies can compete with international manufacturers on a cost, quantity and quality perspective, it may be some time before the 10% import tariff achieves the desired effect. That said, Versofy SOLAR remain committed to using the most trusted components and verified installers. The good news is, generally speaking, the cost of solar PV panels decreases more than 10% each year. In contrast, Eskom increases prices at a similar rate,” he points out.

Another element he addresses, is the cost of investing in solar power, and while buying a solution for the home outright is not feasible for many South Africans, renting is a potential path.

“This is where rent-to-own and Solar as a Service can help as it allows households to avoid the high upfront costs of solar equipment. Instead of purchasing a solar system outright, consumers have the option to pay a fixed monthly amount for the solar energy system to operate on their property, where everything, from installation to support, is covered in a monthly fee – making solar energy much more affordable and accessible for more people,” he emphasises.

“Beyond the immediate cost savings, we are quickly reaching the point where homes equipped with solar solutions are more economically viable than those without. Solar power adds to a property’s resale and rental value. While the exact resale value of a property depends on a number of factors, enhancing a property’s sustainability credentials not only reduces running costs but also increases its market appeal over the long term,” adds Mains-Sheard.

While the cost of living, and now the cost of electricity is becoming ludicrously expensive locally, there are South African companies offering services to lessen this burden and become less reliant on the likes of Eskom and City Power.

[Image – Photo by Markus Spiske on Unsplash]