Why Eskom is Pricing Themselves Out of the Game MyZA

“If you are planning a ‘divorce’ from Eskom then you need to do lots of investigation and planning,” says Alan Straton.

When it comes to the provision of electricity to a smaller home or business the first choice was always to be connected to the grid. Now the advent of ‘consumer focused’ renewable energy generation solutions has created a groundswell of broad based competition to Eskom and an increasing number of consumers eager to cut the cord that binds them to the grid.

So, the bottom line for the above statement comes down to a simple pro’s and cons statement looking at Eskom and Solar Power.

Eskom Pro’s and Cons:

Cons:

Over the years Eskom has increased pricing far above the inflation rate.
From 2003 to 2021 the average price charged by Eskom in cents per kWh went from 40c to around 140 cents per kWh
The minimum 50 kWh ‘donation’ to the poor remains in place
The Myriad of Tariffs and Charges make it almost impossible to effectively plan productive energy use
Continual cost overruns on capital equipment – e.g. Coal fired Medupi, with an installed capacity of 4 764 MW, was estimated to cost between R56 and R80 Billion but is now estimated to have cost north of R234 Billion. A similar situation is being played out at the Kusile Coal fired plant as well.
Loadshedding
Expensive ongoing repairs – even to newly commissioned plant
Failing infrastructure
Fraud and corruption
Continued unpredictable price increases

Pros:

Easy to switch on
No worries about maintenance to an on site production facility

Renewable (Solar) Energy Pro’s and Cons:

Cons:

Initial investment
Back up choices
Reliable on site back up
You are on your own

Pros:

Price per kWh is locked in for 25 years
One simple ‘tariff/expense’ for comparison against Eskom
No cost overruns
No loadshedding
Repair costs can be minimised with extended warranties (from reputable manufacturers)
No fraud and corruption
No price increases.

“Straton Solar will agree with your plan on cutting your tie to the grid in an urban environment so long as the following is understood;” says Alan Straton from Straton Solar: In the unlikely event (but real possibility of) your inverter croaking your solar system must include a lithium battery and ONE other form of power generation capability or storage which will enable you to continue using electrical power for a minimum of 4 days to cover the time that it MAY take to repair or replace your inverter or other major power generating component.

That said – the investment environment presently for a hybrid system (solar panels AND battery) is just on parity with what we pay in cents per kWh to our local municipality so the time and reason to cut ties with your local electricity provider may just not be now. BUT, there is no harm in planning a system with the future ‘divorce from Eskom’ in mind.

At the end of the day – a simple grid tie only installation offers the best payback possible (but, leaves you subject to loadshedding). That said – if we all had to only install grid tie and send back into the grid then we could eliminate loadshedding completely. And, before you moan about how you will not give Eskom a red cent in feedback remember this: “It is our tax rands that are propping Eskom and local Municipalities up with our contributions whether we can help it or not!”