The Sustainable Energy Society of Southern Africa (SESSA), which represents the domestic solar water heating (SWH) industry, has described the decision to transfer the implementation authority for the solar-geyser incentive scheme from Eskom to the Department of Energy (DoE) as a “positive development”.
Eskom will continue to process rebate claims for high-pressure systems installed by January 31, but appealed to suppliers intending to submit high-pressure-system claims to do so before 16:00 on Friday February 27.
High-pressure systems are typically installed at higher-income households and commercial premises, while South Africa has also been installing subsidised low-pressure systems across many low-cost housing developments.
SESSA estimates that about 85 000 high-pressure SWHs have been installed since 2008, while 330 000 low-pressure units were installed between 2010 and 2012 with the support of a rebate programme and some municipal tenders.
Government has an official target of installing a million systems by March this year, but the target is unlikely to be met with around 400 000 SWH installed and with the programme facing changes. The DoE has not yet provided insight into the revisions being envisaged for the high-pressure rebate model, with Eskom advising the industry to exercise caution ahead of the transition period.
SESSA SWH committee chairperson James Green tells Engineering News Online that the transfer from Eskom has been anticipated for some time, as the DoE is designated to oversee the rebates.
The National Treasury allocated R4.7-billion to the DoE in late 2011, with R3-billion allocated for the mass roll-out to low-income homes and R1.5-billion for rebates.
He is also optimistic that the transfer could help stimulate an industry that has been facing major uncertainties, adding that Eskom’s track record in running the programme has been “poor”.
“For some time, Eskom has advised that they have no decision-making authority and are purely under instruction. In addition, the utility had a permanent conflict with end-user renewables, in that it wants to sell power rather than to save it.”
SESSA is convinced that end-user renewables offer the fastest and cheapest remedy for removing demand from South Africa’s constrained grid. It estimates that the SWHs could remove about 18% of Eskom baseload and shave up to 15 000 MW from peak demand.
Green says he hopes the DoE will refrain from making major changes to the high-pressure rebate scheme, as it is essential that a “stop-start scenario” is prevented. “It is important to avoid a repeat of what occurred with the mass roll-out of low-pressure systems, which ceased on December 31, 2012 – the result of which has been a loss of some 6 000 jobs, and factories being mothballed for 18 months.”
It is still unclear what capacity has been created within the DoE to run the programme, but Green indicates that SESSA and others are willing to lend their expertise to support the department where needed. “A focused COO is needed to run the programmes, to report to DoE and the National Treasury. This individual should be advised by experts to enable a long-term sustainable programme,” Green argued.
Full article here: Industry body says transfer of solar-geyser scheme to DoE may spur recovery.