Load-shedding is set to get even worse as we enter the winter months.
With Eskom having projected 61 days of load shedding from March, winter is only going to get colder with the lights going off an average of every third day.
Additionally, the data shows that Eskom requires 50,000MW of additional capacity – more than the entire current grid – to meet demand over the next 13 years.
Independent power producers will likely need to make up for this shortfall, but the latest bid windows only account for 10% of the necessary capacity.
All of this means that the load-shedding is not going anywhere.
There is good news, however: solar power solutions have reached a point where their costs no longer exceed those of using the national grid.
Here’s an example that proves this:
- Take a home that spends R2,500 per month on electricity, and has a bond at prime with 10 years left.
- A system that costs R197,718 would on average replace R2,150 of the monthly electricity bill and cost R2,376 per month.
- Therefore, this year until July, you would pay just R226 per month extra, and would be immune to load-shedding and price hikes.
- Given the price hike of over 15% being implemented from this July, you would save about R50 per month from July – and even more in the following years.
This example shows that there has never been a better time to switch to solar.
It’s time to switch to solar energy.
There are three main financing options available if you want to make this switch:
Available equity in bond
This can be done either by extending your home loan using the equity you have built up in your home, or by applying for a second loan.
The advantage of this route is that home loans are seen as secured lending by banks and are often the cheapest way to access credit.
Certain banks are now creating solar finance products similar to motor vehicle finance offerings.
Because solar is now seen as an asset-backed finance product and a form of sustainable finance, you may be able to source an attractive funding offer.
Specialised solar funders provide structured funding terms whereby you can use the system immediately, and full ownership is transferred to you at the end of a rental term.
Rent-to-own contracts also typically include maintenance offerings by the funder.
Hohm Energy can help you determine the best funding option and solar system for your needs.
It is an online software platform and marketplace that connects customers, accredited solar providers, product suppliers, and financiers in just a few clicks.
Hohm will guide you through the entire solar journey – including scoping for the solution, planning the installation, and facilitating ongoing operations and maintenance.
You will get the best prices and service for your solar system and installation, and Hohm Energy will help match you with the best possible financing option for your solar system.