Good news for people spending over R1,800 on electricity

Many South African households who spend around R1,800 or more on electricity can slash their bills by renting an entry-level solar power system.

For many years, the main appeal to buying a solar power system in South Africa was that it could protect households and businesses from load-shedding.

It would generally take several years for the initial investment to start delivering savings.

Larger power users who saw their bills increase exponentially with heavy consumption due to Eskom’s Incline Block Tariff (IBT) structure generally had a faster return on investment period.

Although solar power systems have become more affordable and lowered the consumption required for a household to start saving, many still don’t have the cash to pay their full cost upfront and must take up a loan with interest to buy their system.

Solar rental companies like GoSolr, Metrowatt, Stage Zero, and Wetility offer more affordable solar subscription packages with a very small or no upfront cost.

Stage Zero recently rolled out a useful calculator that makes it easy for those who want to reduce their bills or get backup power to see whether one of its systems would make sense for their requirements.

The tool is able to show users exactly how various Stage Zero systems will reduce their grid consumption and what they will pay for both the rental and their new electricity bill.

Stage Zero’s calculator can present customers with the best options based on whether they want to have the maximum potential savings, best value with a balance of savings and backup protection, or maximum protection against power cuts.

Using the calculator, MyBroadband determined the minimum consumption a customer would need to have in several major metros and cities before using a system under the Max Savings option in conjunction with grid power was cheaper than only using the grid.

We found that those spending somewhere between R1,700 and R1,800 on electricity would pay less on their total electricity bill when using both self-generation and grid electricity.

The most one of these households would need to consume for self-generation to assist in savings was 541kWh.

The metros with the lowest consumption necessary before achieving a saving were Nelson Mandela Bay, which governs Gqeberha and the surrounding area, and the City of Tshwane.

Gqeberha residents consuming 484kWh and spending roughly R1,700 on electricity every month can get a 6-panel array, 5kW inverter, and 10kWh storage for R1,199 per month, equal to how much less they will pay on their grid bill.

Tshwane residents consuming from 485kWh only need a solar power system with a 3kW inverter and four panels and can still cut down their total bill to less than what they would have paid using only grid power.

The only major metro where people would need to consume more than Eskom’s 656kWh average for regular households on its most common residential tariff and still realise a saving is Durban’s Ethekwini.

Residents in the metro will need to consume 849kWh on average every month for a solar power system to reduce their electricity bills.

That is most probably because the KwaZulu-Natal has the lowest solar power production potential in the country.

The table below shows how much electricity households in various metros and large municipalities must consume each month before adding a self-generating system can help them save money.