NERSA consultation paper discusses revision of rebate rules.

How long will the current Eskom scheme last?

The National Energy Regulator of SA (NERSA) has published a consultation paper on the revision of regulatory rules for energy efficiency and demand-side management (EEDSM).

http://www.nersa.org.za/Admin/Document/Editor/file/Electricity/Electricity%20Infrastructure%20Planning/EEDSM%20Consulatation%20paper%20including%20the%20rules.zip

If it goes ahead it could potentially replace the current Solar Water Heating rebate scheme being run by Eskom

Whilst little is known for certain, the plan, it is understood, will remove the current scheme in favour of a flat concession of 200kWh per month per system, regardless of system efficiency or size.

The current concession value has been suggested as R1296 per year. Equal to approx R0.54 /kWh until such time as an actual “SWH saving” has been established at which time the regulator may adjust the concession value up or down.

This is a serious disincentive to the suppliers of efficient systems in the market and favours typically cheap. Underperforming, solar water heaters (SWH’s) as the suggested concession values are much lower that the current rebate value.

Given that the SABS test standards currently do little to ensure that a SWH is fit for purpose, with no real minimum performance being required* and its one size fits all approach with regard to geographic location variations. This will play into the hands of operators out to make a fast buck by supplying cheap underperforming systems.

With the same concession being offered regardless of solar delivery capability, systems of low performance will appear more attractive than those which actually displace useful amounts of energy.

An article published in March this year highlighted that as many as 40% of the systems offered under the current scheme delivered less than 60% of the energy required to heat the associated geyser by 40oC at the test datum.

With the advent of the new scheme and the continued refusal of Eskom and the SABS not to require that test performance results be published, selection of a SWH system remains a lottery. Unless of course you have done you research and found a supplier who will publish their Q factor and show their test reports.

As a simple analogy if you buy a car, you are entitled to know what size the engine is and what kW rating it has. Sadly this is not the case with SWH’s. Q factor, the SWH equivalent of kW in cars, is considered confidential and may only be disclosed at the option of the supplier.

I fear the current scheme could collapse in just a matter of months, possibly even before the end of the year.

My advice would be if you are considering investing in a SWH, do it sooner rather than later. But make sure you buy one with a high Q factor and therefore high rebate value.

*9MJ (2.5kWh)is the current minimum. This is only sufficient to overcome typical geyser standing loss not actually heat the water.