Monday, March 1, 2010

Mad rush for solar geysers as subsidies rise

The number of households that have taken up Eskom's solar water geyser subsidies has rocketed in the past month since the utility more than doubled the geyser subsidy from around R2,500 to around R7,000. This means that almost half of the cost of the solar geyser will now be covered by Eskom.

When Eskom launched its solar water subsidy programme at the start of 2008, it aimed to subsidise 1 million geysers nationally over five years. But in the first two years of the subsidy's being in place, only 2,000 households had taken up the offer.

After Eskom announced the big subsidy increases in mid-January, it received 762 applications for subsidies in a month.

About 40 percent of a household's electricity bill goes to pay for heating the geyser.

"With the increased subsidies, Eskom pays almost half the cost of the solar geyser. We were motivated to increase the subsidy by a growing concern that we needed to save electricity more aggressively," said Andrew Etzinger, a general manager at Eskom. "We need to get 200,000 installed a year.

"With the bigger subsidies, the householder will recover his investment within five years, and then be getting free hot water."

Etzinger said the electricity saving on a million solar water geysers would amount to 650MW. This is equivalent to one third of the power generated by Koeberg's two nuclear reactors.

The money to pay for the subsidies will come out of Eskom's electricity price hikes.

"It was part of our demand-side management programme, which formed part of the application to Nersa, so the cost will be recovered through the new tariffs.

"It is a lower cost alternative to building a new power station."

The amount of the subsidy varies in relation to the amount of electricity the geyser saves. Those which save the most receive the highest subsidy. All have to be SABS approved

"Householders can go online to www.eskom.co.za/dsm and they will see suppliers in their region and different makes and sizes.

"You choose a supplier, he installs the geyser, you pay the full cost and you both fill in the form he has. You send this, with proof of residence, to the Deloitte branch in your area, and if it is all correct, the turn-around time to get your subsidy is two weeks," Etzinger said.

- Cape Times

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