The following is from a mate of mine who consults to various national bodies on energy.
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For the past few years I have been saying it is NOT yet the best time financially to install a SWH unit on our homes. However, in the past month or so things have changed significantly and believe it is NOW about the best time to install for the following reasons:
1. In January 2010 the current Eskom subsidy scheme on SWH units was substantially increased to try and increase the success of the programme (up to 115% increase more than doubling the amount).
2. The subsidy level is due to start decreasing from next year as the price of electricity increase – as the business case improves for the home owner in terms of savings.
3. The current price of units that we would install on our typical up market homes will not decrease in the short term (2-3 years) due to limitations in the SWH supply industry.
4. Electricity prices will at least double (we may be higher as they are applying a much lower increase level for low income homes, and higher for high users)
5. Typically at least 60% of our monthly electricity bills are used by the geysers, i.e. R480/month if R800 monthly bill
6. A good correctly used SWH will save 70% elec costs in a year = R336/month or R4032/year … or a saving of > R8000 in two years!!
Conclusion – the installation of SWH unit on our houses under the Eskom subsidy programme is an extremely good investment opportunity!! So the question is now which unit, how to size it and how to go about doing it.
Firstly how does the Eskom scheme work:
1. Fully described on their good website at …. [http://www.eskomdsm.co.za/?q=Solar_water_heating_Background_information]
2. Full list of suppliers with exact units covered by the scheme at [http://www.eskomdsm.co.za/?q=swh_supplierslist] - if you search on Western Cape to see how supplies here.
3. Important scheme rules are [http://www.eskomdsm.co.za/sites/default/files/u1/ur_solar_water_heating_rebate_from_Eskom__2_.pdf]
4. What we need to do is to get an approved unit correctly installed (which by the way is an excellent way of ensuring they are all SABS approved and good quality as no fly by nights are registered on their scheme) and then submit the correctly completed paper work and we will be paid back in 2 weeks.
5. To claim see 3 steps … [http://www.eskomdsm.co.za/sites/default/files/u1/_Steps_to_claiming_your_rebate_from_Eskom_v2.pdf]
Selecting a unit:
1. The bigger the unit – the more sun energy it will collect for use by your home and be stored to carry through the rainy/overcast days.
2. Install a unit bigger in tank size than existing geyser i.e. if you have a 150lt geyser install a 200lt SWH unit.
3. Work out the one that is the best in terms of size and performance versus price. Please note the Eskom rebate directly related to thermal performance – they pay more if it is more effective in saving electricity and every unit has a different savings value.
4. I have looked through the scheme results to identify which suppliers have done the most (the popular suppliers who have sold the most under the Eskom scheme are evidently Green Power, Pronto Plumbing, Solarhart/Selected Energy, Solartech, Tasol and Totally Solar), plus the make Solar Dome has been personally recommended to me by the Eskom person/engineer who manages the programme. Based in Stellenbosch.
[NB. These are his personal opinions, and a major reason his name is not attached to this doc - there are many others - do some shopping around]
5. They will always need to add a timer on the back up element (Eskom requirement) – I recommend that a Geyser Wise unit is installed as it will give you the best control over the element (talk to me about how to max elec savings)
6. Please always ask for a “tempering” valve to be installed as well (R800), it ensures that even on very hot days the hot water will never be above say 60deg from a safety perspective.
[and from personal experience, our SWH water goes up to 75deg on a hot day - more than enough for a bad scald for an unsuspecting guest running hot water! - Dave]
You need to look through and decide, get quotes, check that it is once listed on the Eskom scheme then install. I am personally going to pay the extra and install the Sunhotsolar (solar dome) system for R16000 after subsidy as it is very big (300lt and 4.6msq panels) with the greatest subsidy by far (>R12,000) so it will really perform well in terms of savings. Note, the indicative prices on the Eskom Website are under by 2-3000. Plus Geyser Wise and tempering valve will add a bit as well. So in the end, total prices less the allotted Eskom discount will leave you with paying R12000 and up …. which should pay off in a year or two …
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On the strength of his words I am planning to replace our remaining non-SWH geyser before this winter.
Do it this year. Do it now if you can!
And forward this link to as many of your mates as you can think of - share the wisdom.
rgds,
Dave


