Eskom are doubling our electricity prices over the course of three years and this is going to have a terrible effect on both households as well as businesses. The good news, however, is that the government has introduced the Eskom Solar Water Heating Rebate system which looks to motivate people to go green and make use of this great technology. What is the rebate all about though, how does it work and how does it benefit you? Let’s take a look...
What is the rebate all about?
The Eskom Solar water heating rebate system is a government driven initiative. Similar initiatives have long been in place in countries such as the U.S. and Germany and it is only appropriate that a country with the abundance of sunlight such as we receive in South Africa also joins in on the green initiative. The idea is to allow people who are looking to go green and save money on their electricity bills to be able to afford the installation of solar water heating systems, by receiving a cash-back rebate from Eskom for a percentage of the total installation cost. This way, the initial strain of investing in an eco-friendly and cost saving technology takes slightly less strain on participants’ finances.
How does it work?
The amount of any particular solar water heating rebate is calculated according to the performance and reliability of each individual type of solar water heating system. The more reliable and energy efficient the system is according to compulsory tests carried out by the South African Bureau of Standards (SABS), the more of a rebate the consumer will receive.
In addition to the solar water system being SABS approved, the installation company that is installing the system also needs to be an Eskom approved installation company.
When purchasing the relevant solar water heating system, customers will be provided with a claim form for the rebate by the supplier/retailer. On the day of installation, the customer and the installer will be required to complete the relevant details on the claim form and then the customer is required to send it off within six months of installation. Claims take between 4 – 8 weeks to process.
The following details are required to be entered onto the claim form:
- Invoice for purchase and installation of solar water heating system
- Certified Copy of your ID
- Proof of address
- Copy of your electricity bill and/or pre-paid meter number
- Bank account details – the rebate is paid directly back into your bank account
It is important to note that previously it was the installation company’s responsibility to claim the rebate back from the government, however this has since been changed and it is now the responsibility of the end customer to claim back the rebate.
The full amount for the solar water heating system has to be paid for and proof has to be given to Eskom before the rebate monies are paid back to you.
Guidelines to solar water heating costs
The most important decision when considering a solar water heating system is to know what size system and geyser you will require. Below is a basic guideline to the costs associated with solar geysers.
Full solar water heating system for an 'average household' of 4 – 6 people:
- A household of 4 – 6 people will generally require a 200 litre geyser
- Hardware and Installation costs for a 200 litre geyser system = approximately R20k – R25k
- Payback period of investment = 4 – 6 years (free hot water thereafter)
- Eskom rebate for highly efficient 200 litre geyser system = R6000
- Maintenance costs for 200 litre system = none
- Lifespan of solar water heating system = 20 – 35 years
Until very recently, one would have needed to purchase an entire solar water heating system in order to be eligible for a rebate, as shown above. Recently however, Eskom has included Retrofit solar water heating systems in their rebate system. A Retrofit system is a solar water heating system that converts a regular electric geyser into a compatible geyser for a solar water heating system – this means you do not need to purchase a new geyser and can cut down on your initial investment.
Costs associated with a Retrofit system:
- Hardware and installation costs to convert electric system to Retrofit system = R10k – R12k
- Eskom rebate for Retrofit solar water heating system = R5k – R6k
- Payback period for Retrofit system = 3 – 4 years
How does this benefit you?
Investing in a solar water heating system can be fairly intimidating considering the significant investment that needs to be paid up front. However, with the introduction of the Eskom Solar Water Rebate System, you could save in excess of R10 000 on the installation of the system, which means you can definitely afford to at least investigate the possibility of installing an eco-friendly water heating system.
Once you have a solar water heating system installed, you can expect to save on average 50% to 70% of your monthly water heating bill. The average payback period for a system like this is approximately 7 – 10 years and then you receive free water heating for the remaining lifespan of the solar water heating system which is in excess of 25 years.
How to get started:
In order to get started, you will need to get in touch with a supplier of approved solar water heating systems and purchase the most suitable solar water heating system for your home. Do not be intimidated by the seemingly complicated and technical factors that come into purchasing a solar water heating system. It is recommended that you contact a solar water heating supplier and enquire as to which system is best suited for you. Suppliers will normally be able to do a site visit in order to best advise you on the system for your home.
Once you have purchased a solar water heating system from your approved supplier, you will need to have it installed by an ESKOM approved installation company so that you can then complete the Eskom rebate claim form and send it off for compensation. Many suppliers offer installation as well through their own installation teams.
Within 8 weeks, you will receive your rebate and will not only be receiving free water heating, but also be making your contribution to making the earth a greener and more sustainable planet. It’s that simple.
Useful links
Solar water heating: www.sustainable.co.za/solar-water-heating.html.
Eskom approved installation company: Sustainable Projects.
Source: Sustainable.co.za.
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