Four Three Word Sentences on Why Solar Is Still a Good Investment

• Aging Municipal Infrastructure
• Rising Electricity Costs
• Lowest Price Point
• Straton Solar Delivers

The solar market is experiencing what people with economics degrees call a ‘correction’.

At the height of loadshedding consumers were making emotional decisions and throwing money at Eskoms so called incompetence. Amidst general doom and gloom remarks from established and social media we saw ‘fly by nights’ flooding the market – Garden Services, Plumbers, Handymen, Farmers and the like all became instant experts and, in the process. managed to muddle the market for many.

Now, as we eye 200 days without loadshedding, and fully expect to see a full year of steady supply, the solar market ‘correction’ is taking place rapidly as businesses close down, go into business rescue and return to what they did before they decided to enter a market ripe for plucking of the gullible and emotionally motivated consumer.

With the exit of these ‘fly by nights’ we see an oversupply of equipment in the market and suppliers looking to offload expensive inventory. Once that inventory is gone it will be replaced by newer generation equipment at a higher price point.

Bona fide electrical contractors are now assuming their proper place in the market and steadily installing excellent equipment with excellent long term guarantees.

“We learned one thing in our industry – Doing it right the first time and never having to go back is the path to prosperity,” says Straton Electrical.

So, Where to for the Solar Industry?

The current wave is for self generation and self consumption without the use of batteries. i.e. Grid Tie in order to drastically lower the cost of an installation, speed up ROI and future proof against rising electricity costs AND aging municipal infrastructure.

We may have no loadshedding but the regular failing of municipal electricity infrastructure is now ever present.

So – the sales advice now given by Straton Solar has changed somewhat to an emphasis on installing as many solar panels as possible with a small battery or, preferably NO BATTERY AT ALL.

A solar installation with no battery is around 60% of the cost of one with a battery and the electricity price per unit over 20 years will remain fixed at around one third of the cost of a solar installation with a battery – less than R0.70 per kWh as opposed to R2.60 per kWh (depending on the size of the battery).

Profitable businesses seeking a tax write off would do well to look at a Solar Installation for a DOUBLE whammy that will last for many years. It is possible to install a solar system, write off the entire installation to depreciation in one go and still continue to benefit from vastly reduced self generation of electricity for years to come.

“A recent system for a local industrial factory in Gqeberha indicates that the price of system will not only pay for itself immediately but continue to save on electricity costs for a minimum of 20 years. Our estimates on the R1 Million installation are that the client will eventually save just under R5 Million rand over 20 years IF Eskom’s increases are kept to a wildly conservative 6% per annum.” says Straton Solar.

Lets Look that the Nelson Mandela Bay Municipality Infrastructure Challenges as an Example:

The NMB has faced several significant challenges regarding its electrical municipal infrastructure during 2024.

Here are the key issues that have been reported:

The municipality continues to struggle with aging electrical infrastructure, which has been a persistent problem. This deterioration has led to frequent outages and difficulties in maintaining reliable electricity supply.

In early September, strong winds caused damage to the electrical infrastructure, leading to power outages in various areas. Specifically, four 132kV overhead transmission towers collapsed, resulting in outages affecting at least four municipal wards.

Following the collapse of the transmission towers, some areas experienced power outages lasting up to 14 days. This prolonged disruption has significantly impacted residents and businesses.

There are ongoing discussions about the need to increase budgets for infrastructure maintenance and upgrades. The municipality acknowledges that without adequate funding, the challenges posed by aging infrastructure will persist.

These challenges highlight the urgent need for improvements in the electrical infrastructure of the Nelson Mandela Bay Municipality to ensure a reliable and sustainable power supply for its residents.

Unfortunately, the above challenges are not confined to just the Nelson Mandela Bay Municipality. Struggling municipalities experience the same challenges and need billions of rand to catch up with maintenance and replacement since the dawn of democracy.

Details of Some Key Municipalities Electrical Issues:

Dipaleseng Local Municipality: Experienced power interruptions due to a failure of a dedicated power transformer. Specific outages were reported, but the exact duration was not detailed in the sources.

Balfour Town: This area faced outages linked to the municipal networks that supply electricity. Again, while the cause was identified, the duration of the outages was not specified.

Ekurhuleni Metropolitan Municipality: Reported challenges with aging infrastructure and maintenance issues, leading to sporadic outages affecting various areas.

City of Johannesburg: Experienced infrastructure challenges that resulted in power outages, particularly in under-resourced areas.

Tshwane Metropolitan Municipality: Faced ongoing issues with electrical supply reliability, attributed to infrastructure maintenance backlogs.

Mangaung Metropolitan Municipality: Reported difficulties in managing electrical distribution, leading to service interruptions.

Buffalo City Metropolitan Municipality: Reports indicate ongoing issues with electrical supply reliability, attributed to infrastructure maintenance backlogs and aging equipment.

Sarah Baartman District Municipality: This area has faced challenges related to inconsistent power supply, particularly in rural areas where infrastructure is less developed.

Chris Hani District Municipality: Residents have reported frequent outages due to infrastructure failures and maintenance issues, affecting both urban and rural communities.

Amathole District Municipality: Similar to other municipalities, Amathole has experienced power interruptions linked to aging infrastructure and insufficient maintenance.

City of Cape Town: Encountered increased electricity demands in growing areas, leading to maintenance backlogs and service interruptions. Reports indicate challenges with aging infrastructure and the need for upgrades to meet demand.

Overstrand Municipality: Faced issues related to infrastructure maintenance, particularly in coastal towns where demand has surged. Residents reported frequent outages due to equipment failures.

Eden District Municipality: Experienced power supply inconsistencies, especially in rural areas where infrastructure is less developed. Challenges include aging equipment and insufficient funding for maintenance.

Drakenstein Municipality: Reported difficulties with infrastructure reliability, leading to sporadic outages affecting various neighborhoods. The municipality is working on plans to address these challenges but has faced delays.

West Coast District Municipality: Encountered infrastructure challenges due to increased demand and vandalism of electrical infrastructure. Municipalities within this district have struggled to maintain consistent power supply.

Boilerplate and Editor’s Notes.
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