When you install a solar energy system on your property, you save money on your electricity bills and protect yourself against rising electricity rates in the future. How much you can save depends on the utility rates and solar policies in your area, but going solar is a smart investment regardless of where you live. A UESA ‘Customised Solar Energy Proposal’ will show you a financial breakdown of specific financial benefits you can expect from a solar system.

Solar power, like other renewable energy resources, have many environmental and health benefits. Going solar reduces greenhouse gas emissions, which contribute to climate change, and also results in fewer air pollutants like sulphur dioxide and particulate matter, which can cause health problems.

The easiest way to find out how much you pay for electricity (and how much electricity you use per month) is to take a look at your utility electricity bill. (ESKOM, Municipal or Pre-paid)
If you are on pre-paid, you can request a detailed usage statement (which show the amount of units/kW used over a 12 month period) from Eskom or your local municipality.

Net metering is the system that utilities use to credit solar energy system owners for the electricity produced by their solar panels. With net metering, you only pay for the electricity that you use beyond what your solar panels can generate. Net metering policies differ in municipal areas, so make sure to do your homework ahead of time. (UESA does this all for you)

Studies have shown that homes with solar energy systems sell for more than homes without them. However, your property value will only increase if you own, rather than lease, your solar panel system. In most parts of the country, going solar will actually increase your property value more than a kitchen renovation.

Solar panels absorb the sun’s energy throughout the day and convert it into direct current (DC) electricity. Most homes and businesses run on alternating current (AC) electricity, so the DC electricity is then passed through an inverter to convert it to usable AC electricity. At that point, you either use the electricity in your house or send it back to the electric grid.

The amount of power your solar energy system can generate, is dependent on sunlight. As a result, your solar panels will produce slightly less energy when the weather is cloudy, and no energy at night. However, we have very good sunlight hours available in Southern Africa, and with the high electricity costs and financial incentives, solar is a smart decision even if you live in a cloudy city.

Solar panels convert sunshine into power, so if your panels are covered in dust or leaves etc, they can’t produce electricity. Airborne dirt is generally very light and since panels are tilted at an angle, most dirt will slide off. If dirt does accumulate, it is quite easy to keep your panels clean.

When you install solar panels on your property, you will still be connected to the grid. This allows you to draw from the grid when your system is not producing all of the power that you need, and send power back to the grid when you produce more than you use. It is possible to go off the grid with a solar energy system that includes battery storage, but it will cost significantly more and is unnecessary for the majority of homeowners in urban areas. It is also advisable to add a Generator to keep the battery topped during bad weather, should you decide to go off-grid.

Unless your solar energy system includes battery storage and you are fully off the grid, you will still receive a bill from your utility. However, you can dramatically reduce your bill with a solar panel system that matches your energy use.

If your solar panel system is connected to the grid (Grid-Tie) it will shut off in the event of a blackout. This is to prevent emergency responders and electricity utility repair-people from being injured by your panels sending power back to the grid. However, there are hybrid inverters that will divert and provide backup power from the battery bank.

Solar panel systems are made of durable tempered glass and require little to no maintenance for the 25 to 35 years that they will generate power. In most cases, you don’t even need to clean your solar panels regularly. If something does happen, most equipment manufacturers include warranties, although warranty terms depend on the company.

The 12B Tax Allowance targets Shopping centres, Business Premises, Farms, Small Manufacturing Plants and Properties with larger than residential roof spaces.
Section 12B of the Income Tax Act provides for an accelerated capital allowance in respect of certain assets owned and used by a taxpayer in the generation of electricity from wind power, solar energy, hydropower to produce electricity of not more than 30 Mega Watts as well as biomass comprising organic wastes, landfill gas or plant material. As from 1 January 2016, Section 12B of the Income Tax Act (South Africa) was amended from a three-year (50% 30% 20%) accelerated depreciation allowance on renewable energy to an even quicker depreciation allowance of just one year (100%).
With this incentive, you can deduct the full value of your new solar power system as a depreciation expense from your company’s profits. This means that your company’s income tax liability will be decreased by the same value as the value of the installed solar system. This reduction can also be carried over to the next financial year as a deferred tax asset.
This is a direct saving of 28% on the purchase price from day one on the solar system.
The financial ROI model of such a solar power system looks very attractive. If a system is bought cash, the ROI would be 3-4 years and if it’s on a loan, the ROI would be 4-5 years, depending on the local municipality kWh tariff billing rates.
Based on government’s recent announcement of the Just Energy Transition Investment Plan (JET IP), there will also be incentives for rooftop solar, and Eskom will develop feed-in tariffs for the purchase of surplus electricity from residential customers. National Treasury is undertaking further work on tax incentives for investment in small-scale embedded generation. Information will be shared with private investors to guide their investment in the national grid. Click on the link below for the SARS Tax incentives for companies.
https://www.sars.gov.za/wp-content/uploads/Legal/Notes/LAPD-IntR-IN-2017-01-IN95-Deduction-for-energy-efficiency-savings.pdf

There are three solar financing options: You can purchase your system in cash; take out a solar (green) loan to buy your system, or sign a solar lease/power purchase agreement (PPA). UTILITY ENERGY SA’s Customised Solar Energy Proposal can help you assess the costs and 20-year savings of each solar financing option. The calculations are based on the system designed for your application and take real quote data into account.

The decision to buy or lease your solar energy system depends on your reasons for going solar. If you are interested in maximizing the financial returns of your solar energy system, buying the system is probably a better decision for you. However, if you prioritize an easy, maintenance-free way to reduce your energy bills and help the environment, you should consider a solar lease.

Solar loans and solar leases each have advantages and disadvantages. Both options reduce your monthly electricity bills and your impact on the environment, but the terms and conditions of each type of agreement are different. Compare solar loans and solar leases on UTILITY ENERGY SA Customised Solar Energy Proposal to determine which one is right for you.

Many different institutions offer solar loans, including most banks, and specialty financing companies. To choose the best solar loan for you, compare options from a few different financing providers. UTILITY ENERGY SA offer specialised, renewable energy financing.