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Solar and battery backup versus generators – the pros and cons - Moneyweb

Load shedding might have eased in the last few weeks, but judging by the demand for alternative power sources, South Africans appear to be preparing for the worst.

The question is what system to choose? A petrol or diesel generator, a solar system with batteries and an inverter, or a fixed backup system comprising an inverter and battery storage (without solar panels). Cost Of 5kva Generator

Solar and battery backup versus generators – the pros and cons - Moneyweb

This has become the most popular form of backup in SA as it allows you to harvest sunlight during the day, thereby reducing electricity bills, while keeping the batteries charged in the event of load shedding. They can also be programmed to deplete the batteries at night, even when there is no load shedding, and recharge them during the day.

These systems can be customised to meet your specific needs and budget. You will need solar panels, an inverter and batteries – the last being the most expensive item on the list. An advantage here is that you can start small, with say a 5Kwh inverter and battery, and upgrade later should you need to.

Those planning to go completely off-grid will need to invest in a large solar power system and generator as a further backup for overcast days. This can be prohibitively expensive, which is why most people opt for a hybrid system where the home remains connected to the grid.

Marc du Plessis, executive head of LookSee, Standard Bank’s home efficiency platform, says a fully off-grid system can cost as much as R700 000 depending on the size, which is beyond the means of most South Africans.

“It’s far more affordable to have a grid-tied system where you can draw power from the grid and use that power at night or when there is no sunlight.

“Solar power offers both power security and savings on the electricity bill which can be used to offset the costs of installation,” says Du Plessis.

Solar power systems are connected directly to your electrical distribution board (DB) so there is no power interruption when load shedding kicks in.

LookSee’s new Solar Loan scheme

LookSee’s new Solar Loan is designed to appeal to the needs of most power consumers: loan sizes range from as little as R3 000, up to R300 000, with personalised interest rates that are capped at a maximum of prime plus 2.5%. This is a substantial discount on the prime plus 7% average offered on personal loans, or the maximum prime plus 17.5% mandated by the National Credit Act.

The Solar Loan scheme is a product of the government’s Energy Bounce Back Loan Guarantee Scheme which also allows households to access the home solar tax incentive, announced by Finance Minister Enoch Godongwana in the 2023 Budget speech.

Those seeking to take advantage of this will have to act before 29 February 2024, meaning the solar system must come into use before this date. The tax rebate allows individuals to claim 25% of the cost of solar panels, up to a maximum of R15 000. The rebate does not apply to batteries, inverters, portable solar panels, fittings, diesel generators or installation costs.

These systems are also popular and comprise an inverter and batteries, without solar panels. The batteries are charged by connecting to the grid, and can be run down during load shedding.

Like solar power systems, these are connected directly to your DB so there is no power interruption when grid power is interrupted.

The disadvantage is that you cannot power the batteries from solar panels, so you cannot expect a reduced electricity bill.

Du Plessis points out that there is a range of brand, technology and configuration options available, which means prices can vary widely. “However, the modular make-up of these solutions means that you can increase your battery storage or easily upgrade to a solar solution at a later stage,” he adds.

There are also portable backup systems for powering the essentials such as computers, lights, Wi-Fi and TV.

A portable backup does not require petrol or diesel and is fairly economical to run. They come in different ranges and sizes and need to be recharged by connecting the unit to a mains plug, though some can also be charged from solar panels or a car. Another advantage is that they are portable, so you can take them with you wherever you go, and they do not emit toxic fumes. The downside is you have to plug your devices directly into the unit, which is designed to run only the most essential appliances.

Petrol or diesel-powered generators remain a popular option for many households as they are simple to install and (relatively) portable.

However, many people found themselves spending upwards of R6 900 a month on fuel during Stage 2 load shedding, making them costly to run. Then there is the noise and exhaust. Some housing complexes have banned the running of generators for these reasons. For the most part, they also have to be started manually, though automatic switches are available to fire up the generator during power interruptions, but these are rather costly.

A LocalPros study of the costs of running different generator sizes shows it can cost more than R20 000 a month to run a 20kVA system, which makes the solar power alternative, with no monthly running costs, far more attractive.

Estimated generator running costs during load shedding (updated from LocalPros):

* Based on an 8kw system with 10kw of batteries and 6.7kw of solar PV

Getting the right system for your needs

LookSee’s Home Solar process is a good place to start the solar journey, says Du Plessis.

“The purpose of the analysis is to identify the ideal system size for your needs by looking at your current electricity usage, from which we can recommend a suitable solar package, complete with an estimation of how much of your power needs this meets. There are also alternative system sizes available for those that are looking for something different.”

For more information, click here.

Brought to you by LookSee.

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Solar and battery backup versus generators – the pros and cons - Moneyweb

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