Netherlands-based independent solar energy consultancy Solarplaza believes the risks associated with investing in solar, particularly in sun-drenched South Africa, are falling and that the renewable-energy solution could, eventually, become more attractive than coal.

“First of all, the prices of solar have dropped by 70% over the past half a decade, and we predict they will con- tinue to decrease in the years to come. “The demand and market will continue to grow, which is good news for investors,” says Solarplaza CEO Edwin Koot.

Secondly, the prices of solar energy are more reliable and stable than the price of electricity generated from coal, which as a commodity is vulnerable to market fluctuations.

“While solar prices are stable and on the decline, we do not know what is going to happen with coal. Higher coal prices will translate into higher elec- tricity prices. “As coal deposits on the sur- face are slowly being depleted, it will become more expensive to mine the coal in the future. We, therefore, can expect the price of coal to go up at some point,” Koot explains.
Thirdly, the sun is more reli- able than coal in terms of volume, Koot adds.

South Africa is rated as among the world’s best solar locations, after the Sahara and Australia, and has 2 500 solar hours a year.

“This country will not run out of sun, making it a stable and reliable resource,” Koot points out, referring to media reports highlighting South Africa’s dwindling coal reserves.
In November last year, the media quoted Deputy Minister for Mineral Resources Godfrey Oliphant as stating that the quality and quantity of South African coal, responsible for 90% of our electricity, are on the decline.”