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Wednesday Jan 13, 2010

Eskom raises solar geyser subsidy for consumers

n an aggressive attempt to convince more South Africans to buy and use solar geysers, Eskom is raising the cash-back rebate offered to consumers.

Currently, an average of 20 percent of the money spent on a solar geyser is returned by Eskom to the purchaser, according to spokesman Andrew Etzinger.

Tomorrow, the electricity giant is due to announce a new, higher rebate level.

"This is in the hope of increasing uptake of solar electricity in South Africa," Etzinger said yesterday.

The rebate system has been running for two years, but has failed to elicit the desired response. In the first year, Etzinger said, about 600 transactions were recorded. Last year, the number more than doubled to 1 400.

"In terms of percentage, this is good," Etzinger said.

"But the target is to get thousands of households to install solar geysers, and we are planning to be a lot more aggressive."

The solar geyser programme is one of several that make up Eskom's demand-side management project. The aim of the various measures is to lower electricity demand by the public. Eskom has recently announced huge hikes in electricity costs during the next three years.

Solar geysers, however, are "definitely a winner", Etzinger said, and had the potential to shave 70 percent off a geyser's electricity consumption.

Solar geysers use electricity to power a back-up system for overcast days.

The industry has wasted no time to market Eskom's decision.

Solahart, one of the industry's big players, calculated that the new rebate could have increased from almost R5 000 to R12 000. This is based on a 300-litre geyser that retails for about R33 500, said Kristia van Heerden on behalf of Solahart.

"We have long been calling for a larger rebate," said Jim Hickey, managing director of Selected Energy (supplier of Solahart products).

"In the solar water-heating industry, larger rebates are the most effective way of improving the uptake of solar water heaters. We believe that this step will go a long way in relieving some of the supply pressures Eskom has been experiencing."

People considering buying a solar geyser need to do research and find a registered supplier. Van Heerden said Eskom generally made payments within two weeks of purchase.

For more information, visit www.eskomdsm.co.za

The Star

Comments:

Problem is that at R33000(or R21000 after the rebate)... it is so expensive that hardly any households in SA can afford it(except the wealthy folks, who can anyways afford the elec bills), hence the slow up take... for solar geysers to have any impact, they will have to be considerably cheaper... Eskom should setup a non-profit entity to supply and install these geysers, it's a national imperative and the commercial suppliers/installer are doing it for profit, hence the unrealistically high price

Posted by mr b on January 13, 2010 at 10:54 AM SAST Report this Comment

I would bet that the difference in the before and after prices of a solar hot water system increased by approximately the amount of the rebate that Eskom introduced so in effect the purchaser still paid the full price. It would be interesting for Eskom to check this out and if indeed the prices increased as suspected, then either legislation needs to be introduced to correct this or Eskom buys out a number of suppliers and then does the job itself or sets up its own facilities with a branch network to do the installations and thus save the amount of electricity consumed - this route would save more and cost less than building another carbon emitting or nuclear power station

Posted by Mr R on January 13, 2010 at 11:12 AM SAST Report this Comment

Manaufactures are ripping everyone off. Shop around, I got a 150l geyser for R3800, didn't bother with the rebate as too much hassle.

Posted by In hot water on January 13, 2010 at 11:16 AM SAST Report this Comment

Whenever there is a rebate, prices will go up. It happens the world over. Make your own with a 2" X 4" wooden frame on a corrugated 4' X 8' sheet with copper pipes inside and all covered over with KLINGWRAP. Yup Klingwrap! It lasts about 10 years before needing to be renewed. Usual black paint and back insulation required. Go for it.

Posted by Truthful James on January 13, 2010 at 01:13 PM SAST Report this Comment

Anyone who has had the displeasure of dealing with Eishkom over this rebate scheme will question whether the eventual rebate is worth the time and frustration involved in wading through seemingly endless user-unfriendly application processes 'supported' by disinterested employees of an organisation that only pays lip service to DSM. Members of SESSA are equally frustrated by the laborious registration process that solar water heater suppliers have to go through - including mandatory SABS testing relating to pressurised vessels which are utterly irrelevant to solar water heaters (which operate at ambient pressures). For what it's worth, we have been running a locally designed and manufactured solar heater for the best part of a decade and our experience of the unit's performance (and associated cost savings) has been wholly positive - my advice would be to focus on these beneficial aspects and safeguard your mental wellbeing by giving the rebate scheme a miss!

Posted by Vumba on January 13, 2010 at 03:03 PM SAST Report this Comment

Eskom has designed a labyrinth of bureaucracy because its leaders are without any foresight and consider SWH in competition with coal generated electricity. It does not consider itself a parastatal in service of the public and in the interest of South Africa but a monopoly clinging on to its power with the full knowledge that the archaic laws protect them unreservedly. It does not want competition from any other sector. Other examples are their reluctance sign agreements with the private sector who want to generate green electricity and their disregard for the feed-in tariffs . The government needs to take a serious look at this critical service that is on the brink of crippling the economy of the country because of the ineptness of its management and board.

Posted by The Bobster on January 13, 2010 at 04:44 PM SAST Report this Comment

I have it in writing, (From a report issued by SABS), that the previous government did not encourage the use of solar, in order to keep Eskom in business. Go to Botswana. In Gabs they have a huge factory only making solar panels. They saw the "light" years ago. As for the costs??? Someone's making a killing here.

Posted by Paul on January 13, 2010 at 04:53 PM SAST Report this Comment

I installed a TASOL, Eskom approved solar water heating system. I already had a fibreglass geyser installed which is SABS approved. Eskom would not give me a rebate because the TASOL system was tested on a KWIKOT geyser. So, although I am saving electricity, and by my estimate a lot (15 kw.hr used in a month by the geyser), they will not pay the rebate.

Posted by Tim Johnson on January 13, 2010 at 06:23 PM SAST Report this Comment

Agreed... Firstly the rebate system was never well published/advertised so very few people even knew it existed (SA is also not familiar with rebate type payment systems). But then ESKOM made it so difficult and almost impossible to claim for those that did. A figure I would like to see on this report is how many "applicants" they had...

Posted by Kevin on January 13, 2010 at 09:23 PM SAST Report this Comment

Nice try, but it won't work in SA. 1)Artificially inflated prices by suppliers to cash in a quick buck. 2) FRAUD. 3)Nothing said about maintenance and repairs ---- a hefty sum. Plumbers know how to make a buck. 4) will probably take up to 20 years to break even the cost of installation and upkeep even if power costs you R2000 a month.

Posted by ivebeencaught on January 13, 2010 at 10:27 PM SAST Report this Comment

i know of consumers that had to wait 8 months before the 'rebate' was paid out. the consumer is being ripped off, cannot use his existing hwc. he must purchase a complete system with EVERY component as tested. i found a solar driven circulation pump for close to R3000. only thing is, last week i found the same pump for R1300! the installation cost of plumbers vary from R2000 labour to R5000!! iopsa tells us that the plumbing industry is well regulated!! i researched a solar system before this 'system' was launched and the price of a unit went from R11000 to almost R18000!! (local manufacturer) Eskom were unable to give govt guarantees regarding the 2010WC. so they anounce this doubling of rebates to kickstart the solar geyser uptake.

Posted by schmeghead on January 14, 2010 at 08:43 AM SAST Report this Comment

If only Eskom and GOV would realise that we the public are not plank thick(read stupid)... everything they do these days has devious motives... I wonder how many people battle to post here cause they can't do the captcha sum before posting there comment... lol!

Posted by mr b on January 14, 2010 at 10:20 AM SAST Report this Comment

I have been researching installing 4 solar geyser's on my property. I agree that prices skyrocketed when Eskom brought out the subsidy. I am keen to build and install my own system, and have included my email addy if there are people that can give advice. In hot Water would you mind mailing me contact details for where you got a 150l geyser for R3800? Truthful James your ideas sounds great, can I have more details? Reading the above I will probably not bother with the rebate as it sounds like just too much hassle. Lets help each other out here!

Posted by FunCTMale@mailbox.co.za on January 14, 2010 at 10:58 AM SAST Report this Comment

Fraud, increasing prices to take advantage of rebates and so on are not in any way unique to South Africa.

Posted by Dan on January 14, 2010 at 03:09 PM SAST Report this Comment

I just think that once again its just a tactic to take the focus off what they really shod be supplying in the first place ie hot water. Why does'nt Eskom develop the most cost effective solar geyser system and install it into every South African's home over the next 5 to ten years???? and then they can start talking about a rebate as the monkey or blame on rebates just gets past from one monkey to the next. Please can In Hot Water also email me the contact details for the 150l geyser for R3800.00. Thanx

Posted by All geysered out on January 14, 2010 at 11:55 PM SAST Report this Comment

To the guy saying make your own system, could you give us more info please, that sounds easy enough I would love to try it. I have not gone for the solar option because the saving in electricity will take the 20 years I have to pay on my bond, to pay for the solar geyser, so not really financially viable. The problem with so many green solutions is that the mass of south africans couldnever afford them. In Cape Town wind turbines for every household would be good, but at 26000 for one, who is going to pay for it??

Posted by 41.240.24.89 on January 15, 2010 at 07:08 AM SAST Report this Comment

the cheaper option has many problems and is not the right way to go! contact me... denver@solarpps.co.za

Posted by denver on January 16, 2010 at 03:25 PM SAST Report this Comment

It is good to see South Africans are not fooled by the rebate scheme. For those who want a top quality system at an affordable price (less than net after rebate) without the hassles of the rebate scheme, contact me

Posted by alan.bell@gorbiproducts.co.za on January 17, 2010 at 04:11 PM SAST Report this Comment

Thanks for the forum and please may I have contact info re to my email below : solar driven circulation pump pump at R1 300.00 from schmeghead. Also being a closet Popular Mechanics kind of gal I would also love to know more about Truthful James' system. Perhaps Denver might elucidate the cheaper options problems within this open forum as I note he is connected to a solar company and I am hearing vested interests as opposed to alternative,safe and cheap as opposed to stylish and expensive.

Posted by gwendolene@gmail.com on January 20, 2010 at 10:04 AM SAST Report this Comment

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