More clarity on how private- sector companies can become generators is required to boost the development of renewable-energy generation projects, especially with State-owned power utility Eskom having implemented rotational power cuts to prevent a blackout last month.

More needs to be done at policy level to remove restrictions, including those affecting applications for generation licences, aver renewable-energy, property and advisory companies.

“The government needs to finalise issues on feed-in tariffs, such as prequalification criteria, the licensing process and timelines, so that private producers can start feeding energy back into the grid, which will relieve the pressure on South Africa’s ageing coal power stations,” says UK-based solar power company Solarcentury South Africa MD Gareth Warner.

“South Africa needs a new energy mix that harnesses all its energy options. “The sooner bureaucracy is cut, the sooner the country can move ahead and realise a greener and more sustainable South Africa. This, together with the cooperation of government, will support the uptake of solar among commercial properties,” he adds.

Compared with new buildings, existing buildings present a greater opportunity for installing solar, as there is a lot of unused roof space on existing South African commercial buildings, says JSE-listed property investment company Growthpoint Properties sustainability and utilities head Werner van Antwerpen.

“By installing solar panels, buildings improve their Green Star rating scores, as solar decreases fossil energy consumption and reduces carbon emissions, which will reduce the carbon tax (due for implementation in 2016) that companies will have to pay,” he says.

After the initial outlay cost of a solar power system, energy is free and can meet all daytime energy requirements.

“The issue, however, is that businesses too often base their decisions on historical data rather than making energy choices with the future in mind,” says advisory firm Deloitte alternative energy modelling and planning leader Gareth Gregory.

“The decision to install solar is often driven by the tariff structures. Solar helps to reduce fossil grid energy, [and thus] operational costs, which also means lower bills for property tenants,” adds Van Antwerpen.

While solar has a role to play in South Africa’s overall energy mix, it is not without its own challenges, such as the inability to produce power at night. Batteries can be used to store excess electricity, but batteries are not only cost prohibitive for mass-market adoption, but also have a life span of only ten years, compared with the life span of a rooftop solar PV systems of 20 to 30 years.

Companies like Solarcentury can help businesses become more financially and environmentally sustainable, and encourage them to re-evaluate their power supply, looking beyond coal to more renewable-energy sources, as a mixture of renewable and fossil energy sources will drive sustainability and not only a single technology, concludes Warner.

The governing party, at its annual meeting, rejected the formation of an Independent System Market Operator (ISMO), despite the ISMO Bill having been discussed for years, which makes the inclusion of private-sector power generation and the future shape of the generation and distribution industry increasingly uncertain.