Graeme Chown, chief executive director at energy management consultancy firm PPA Energy SA, says businesses must start thinking of solar energy as a practical need-to-have solution rather than a green, nice-to-have solution particularly if one considers any impending power cuts by Eskom.

“Solar energy offers a good alternative source of energy for businesses in South Africa. It is cheaper than the diesel plants and generators that are used as a substitute to conventional coal-generated power,” says Graeme.

However, the cost of solar energy is still more expensive than mainstream electricity, a situation Graeme says is set to change.

“Solar panel prices in South Africa are dropping at around 10% per annum, which is pretty much on par with the rest of the world. We predict it will take three to five years for solar electricity to be cheaper than normal power, especially when Eskom is granted its 16%-increase per year.”

Graeme is a speaker at the Solar Future South Africa conference, which will take place at the Cape Town International Convention Centre on 12 February 2013.

The conference’s agenda ties in with Eskom’s application for electricity tariff increases of 16% per year for the next five years. This will significantly affect private businesses. The National Union of Metalworkers (NUM) said that 37.5% of energy-intensive companies in South Africa would in due course have to close down if the tariff hikes were granted. While NUM mainly referred to big operators such as mining companies, other segments of the economy will also be negatively affected.

According to the MD of Pretoria-based solar electricity development firm Subsolar Energy, Dick Berlijn, medium-sized businesses with high energy needs suffer most from any tariff increases.

“Take supermarkets, agricultural businesses, dairy farmers and retailers, which require constant and considerable amount of electricity.  These types of companies are paying some of the highest tariffs compared to big business like miners,” he says, adding that SMEs would benefit most from affordable solar systems on their roofs.

Romano Group, which installs solar systems, says the use of solar is catching up.  The company has installed nearly 1MWp of rooftop solar PV systems across South Africa in recent years.

“One of those projects is a 100KWp system on the roof of a Pick n Pay branch in Hurlingham in Johannesburg. The system provides 25% of the venture’s electricity needs, and as a result 4,000 fewer tons of carbon will be emitted into the atmosphere in the next two decades,” says Romano Group CEO, Alexi Romano.

According to SA-based branding and advertising expert, Andrew Rice, more South African companies could and should use solar energy.

“It seems that perceptions are lagging behind the reality and the technology. Technology has improved more than people realise. It takes time for that reality to catch up,” he says, adding that marketing of solar energy should no longer revolve around the green element but around the practicalities.

The Solar Future South Africa conference will discuss the potential of solar energy in the country, how global solar developments affect the cost of solar energy locally, the position of solar in Eskom’s future energy mix, and what it takes to develop a large PV solar plant.

Source : abdas.org